IN DEDICATION (DATO ALI) NEW (Page 1) - MISC Berhad

Contents
In Dedication 2
FINANCIAL HIGHLIGHTS
Current Year Financial Highlights 4
Five-Year Group Financial Statistics 6
Financial Calendar 8
Analysis Of Shareholdings 10
Share Performance 11
CORPORATE PROFILE
MISC... At A Glance 12
MISC Fleet Strength 13
Countries & Ports Of Call 2003/2004 14
MISC Group Structure 18
Corporate Information 20
PEOPLE
Board Of Directors 21
Profile Of Directors 22
Management Committee 26
Profile Of Management Committee 26
CORPORATE TRANSPARENCY
Our Corporate Governance Statement 32
Statement On Internal Control 38
Board Audit Committee 43
Terms Of Reference Of
Board Audit Committee 44
THE YEAR IN REVIEW
Chairman’s Statement 48
Operation’s Review Financial Year
2003/2004 58
Health, Safety, Security, And Environment
(HSSE) Report 86
Corporate Highlights Of The Year 88
Corporate Social Responsibility 94
Staff Development & Welfare:
Sustaining An Integrated Workforce 98
Employees Activities For The Year 100
FINANCIAL
Financial Statements 104
List Of Vessels 178
Properties Owned By MISC Bhd
And Its Subsidiaries 183
CORPORATE DIRECTORY
MISC Group Of Companies 187
ANNUAL GENERAL MEETING
Notice Of Annual General Meeting 190
Statement Accompanying Notice Of
Annual General Meeting 192
Proxy Form
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
1

The Late
Dato’ Hj. Mohd Ali bin Hj.Yasin
(Managing DIrector/Chief Executive Officer of Malaysia International Shipping Corporation)

A man whose leadership qualities and dedication to
work ethics have instilled in us all a sense of purpose and
direction.
As we mourn his loss, we will forever remember his
unwavering courage of conviction, moral sense of integrity
and strong discipline to guide us as we move forward to even
greater heights.
“
”

4
Current Year
Financial Highlights
PROFTABILITY
RM Million
2500
2000
1500
1000
500
0
Profitability
1,417.3
1,389.4
2000 +
1,728.4
1,685.0
2001
1,415.6
1,343.9
2002
1,310.7
1,310.3
2003
2,326.4
2,289.6
2004
Profit Before Taxation
Net Pofit For The Year
+Based on annualised 15 months figures
● The significant increase in profit before
taxation of 77.5% was attributable to the
contribution from American Eagle Tankers
Inc. Limited ("AET") and the upsurge in
freight rates and shipping volume in the
shipping businesses.
● Petroleum showed the biggest improvement
in profit before taxation followed by Liner,
Bulk, LNG and Chemical business units.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
EARNINGS & DIVIDENDS
Sen Per Share
150
120
90
60
30
0
74.7
20.0
2000 +
90.6
26.0
2001
Earnings Per Share
Dividends Per Share
+Based on annualised 15 months figures
Earnings Per Share
72.3
30.0
2002
70.5
30.0
2003
123.1
30.0
2004
● Earnings per share increased by 52.6 sen or
74.6% to 123.1 sen per share.
● Dividend per share as reflected in the
financial statements remained at 30 sen per
share for the current year, comprising 15 sen
final dividend for FY2002/2003 and interim
dividend of 15 sen for FY2003/2004.
● Management is proposing a final dividend of
15 sen and a 10 sen special dividend at the
forthcoming AGM bringing total dividend for
FY2003/2004 to 40 sen per share.

BALANCE SHEET
RM Million
25000
20000
15000
10000
5000
0
14,378.1
6,601.1
11,117.1
Balance sheet
1,621.5
2000 +
14,564.3
11,025.8
7,796.5
1,916.8
2001
14,348.2
11,112.0
8,861.2
1,659.8
2002
14,726.3
12,130.1
9,618.3
Total Assets
Ship, Properties & Equipment
Cash, Deposits and Bank Balances
Shareholders’ Funds
● Total assets increased by 51.8% of
which RM6.0 billion was contributed by
the acquisition of AET and increased
stake in MSE Holdings Sdn. Bhd. group
("MSE"). Total vessels owned as at 30
June 2004 have also increased to 138
from 126 in the prior year.
● Shareholders' funds increased by
18.0% resulting from additional
earnings retained for the financial year.
● Cash, deposits and bank balances
increased by 80% or RM824.6 million.
The increase were mainly due to the net
cash generated from operations of
RM2,446 million and net cash from
financing activities of RM2,750 million.
Financing activities registered a net
inflow which resulted from the
drawdown of the bridging loan facility
1,029.7
2003
17,877.5
22,355.5
11,351.8
1,853.6
2004
and the additional Japan Bank for
International Cooperation ("JBIC") loan
drawdown on top of repayments of the
Group's current loan obligations.
However, these total inflows were
reduced by the significant cash outflow
for investing activities amounting to
RM4,368 million for capital expenditure
as described below and the acquisition
of AET during the year.
Capital expenditure continued its
northward march as the Group
maintains its investment pace
registering a 36.8% increase in
expenditure relative to last year. The
payments comprise mainly of progress
payments for LNG, Petroleum and the
Floating, Production, Storage &
Offloading (FPSO) project as well as
MISC's LNG Tenaga vessels
refurbishment project.
DEBT/EQUITY RATIO
Ratio
1.0
0.8
0.6
0.4
0.2
0
0.98
0.73
2000 +
0.70
0.46
2001
Total Debt/Equity
Net Debt/Equity
Debt/Equity ratio
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
0.52
0.33
2002
0.44
0.33
2003
0.82
0.66
2004
● Debt/Equity ratio increased to 0.82
from 0.44 due to the bridging loan
used to fund the AET acquisition as
well as the consolidation of AET's
existing loans. Furthermore, the Group
increased its drawdown of the JBIC
loan to finance the new LNG vessels
construction. Nevertheless, the ratio
remains significantly lower than the
industry norm of 2.0 times.
5

6
Five-Year Group
Financial Statistics
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
31.3.2004 31.3.2003 31.3.2002 31.3.2001
Annualised
31.3.2000
RM Million RM Million RM Million RM Million RM Million
Revenue 7,606.3 5,433.0 5,508.4 5,846.7 5,250.4
Profit before taxation 2,326.4 1,310.3 1,415.6 1,728.4 1,417.3
Net profit for the year 2,289.6 1,310.7 1,343.9 1,685.0 1,389.4
Taxation 7.1 (3.5) 16.2 27.4 11.9
Dividends 558.0 558.0 558.0 483.6 372.0
Earnings per share (sen) 123.1 70.5 72.3 90.6 74.7
Return on assets (%) 14.2 10.5 11.9 15.5 13.6
Return on shareholders' funds (%) 20.2 13.6 15.2 21.6 21.0
Profit before taxation as % of revenue 30.6 24.1 25.7 29.6 27.0
Net profit for the year as % of revenue 30.1 24.1 24.4 28.8 26.5
Paid-up capital 1,859.9 1,859.9 1,859.9 1,859.9 1,859.9
Shareholders' funds 11,351.8 9,618.3 8,861.2 7,796.5 6,601.1
Total assets 22,355.5 14,726.3 14,348.2 14,564.3 14,378.1
Total liabilities 10,752.5 5,032.9 5,386.6 6,710.1 7,734.9
Total borrowings 9,356.3 4,244.7 4,612.2 5,479.5 6,471.5
Capital expenditure 2,545.9 1,912.0 967.2 773.3 667.2
Net tangible assets per share (sen) 557.9 496.6 453.4 394.0 327.8
Debt/equity ratio 0.82 0.44 0.52 0.70 0.98
Interest cover ratio 17.6 14.3 10.0 7.0 6.2

REVENUE
RM Million
8,000
6,400
4,800
3,200
1,600
0
5,250.4
5,846.7
5,508.4
2004
2003
2002
2001
2000 +
5,433.0
CAPITAL EXPENDITURE
RM Million
3,000
2,400
1,800
1,200
600
0
667.2
773.3
967.2
2004
2003
2002
2001
2000 +
1,912.0
INTEREST COVER RATIO
No. of times
20
16
12
8
4
0
6.2
7.0
10.0
2004
2003
2002
2001
2000 +
14.3
17.6
7,606.3
2,545.9
+ Based on annualised 15 months figures
NET PROFIT FOR THE YEAR
RM Million
2,500
2,000
1,500
1,000
500
0
1,389.4
1,343.9
1,685.0
2004
2003
2002
2001
2000 +
TOTAL BORROWINGS
RM Million
10,000
8,000
6,000
4,000
2,000
0
6,471.5
5,479.5
4,612.2
2004
2003
2002
2001
2000 +
RETURN ON ASSETS
Percent
20
16
12
8
4
0
13.6
15.5
11.9
2004
2003
2002
2001
2000 +
10.5
1,310.7
4,244.7
14.2
2,289.6
9,356.3
28.0
22.4
16.8
11.2
5.6
DIVIDENDS
RM Million
600
480
360
240
120
0
600
480
360
240
120
0
372.0
483.6
558.0
2004
2003
2002
2001
2000 +
558.0
558.0
NET TANGIBLE ASSETS PER SHARE
Sen
0
327.8
394.0
453.4
2004
2003
2002
2001
2000 +
496.6
557.9
RETURN ON SHAREHOLDERS’ FUNDS
Percent
21.0
21.6
15.2
2004
2003
2002
2001
2000 +
13.6
20.2
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
7

8
Financial Calendar
Activity Name
Financial Year
Announcement Of Results
& Dividends
Quarter 1 Results
Quarter 2 Results
Quarter 3 Results
Quarter 4 Results
Interim Dividend
(Announced/Paid)
Final Dividend
(Announced/Payable)
Annual Report (Issued)
Annual General Meeting
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
2003
Apr May June July Aug Sept Oct Nov Dec
1
Announcement of Results & Dividends Annual General Meeting Annual Report (Issued)
26
12
12
30

2004
Jan Feb Mar Apr May June July Aug
25
31
Annual Report Issued 21 July 2004
Annual General Meeting 12 August 2004
24
24
21
30
12
Financial Year
Announcement of Results &
Dividends
1 April 2003 – 31 March 2004
Results
Quarter 1
Announced 26 August 2003
Quarter 2
Announced 12 November 2003
Quarter 3
Announced 25 February 2004
Quarter 4
Announced 24 May 2004
Dividends
Interim
Announced 12 November 2003
Paid 30 December 2003
Final
Announced 24 May 2004
Payable 30 August 2004
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
9

10
Analysis Of Shareholdings
As At 30 June 2004
Size of Shareholdings No. of Shareholders % of Shareholders No. Shares
% of Issued
Share Capital
Less than 100 283 4.54 6,738 0.00
100 – 1,000 1,839 29.51 1,367,915 0.07
1,001 – 10,000 2,779 44.59 10,268,063 0.56
10,001 – 100,000 838 13.45 29,224,307 1.57
100,001 to less than 5% of issued shares 491 7.88 548,819,443 29.51
5% and above of issued shares 2 0.03 1,270,227,327 68.29
Substantial Shareholders
6,232 100.00 1,859,913,793 100.00
Nama No. of Shares Held % of Issued
Share Capital
1. RHB Nominees (Tempatan) Sdn Bhd
(Petroliam Nasional Berhad)
1,161,256,460 62.44
2. Employees Provident Fund Board 108,970,867 5.86
1,270,227,327 68.29
Thirty (30) Largest Shareholders
Name No. of Shares Held % of Issued
Share Capital
1. RHB Nominees (Tempatan) Sdn Bhd
(Petroliam Nasional Berhad)
1,161,256,460 62.44
2. Employees Provident Fund Board 108,970,867 5.86
3. Lembaga Kemajuan Tanah Persekutuan (FELDA) 42,669,422 2.29
4. Perbadanan Pembangunan Pulau Pinang 32,000,000 1.72
5. Amanah Raya Nominees (Tempatan) Sdn Bhd
(Skim Amanah Saham Bumiputera)
31,918,500 1.72
6. Cimsec Nominees (Tempatan) Sdn Bhd
(Security Trustee (KCW Issue 1)
31,000,000 1.67
7. State Financial Secretary Sarawak 30,666,667 1.65
8. Valuecap Sdn Bhd 18,989,300 1.02
9. Amanah Raya Nominees (Tempatan) Sdn Bhd
(Amanah Saham Wawasan 2020)
10,436,100 0.56
10. Citicorp Nominees (Asing) Sdn Bhd
(MLPFS for Grantham Resources Ltd)
9,000,000 0.48
11. Kerajaan Negeri Pahang 8,653,800 0.47
12. HSBC Nominees (Asing) Sdn Bhd
(BBH And Co Boston for GMO Emerging Markets Fund)
7,957,000 0.43
13. ECM Libra Securities Nominees (Tempatan) Sdn Bhd
(PETRONAS Retirement Benefit Scheme)
7,725,000 0.42
14. HSBC Nominees (Asing) Sdn Bhd
(Stitching Pensionenfonds ABP.)
6,353,900 0.34
15. HSBC Nominees (Asing) Sdn Bhd
(Abu Dhabi Investment Authority)
6,076,800 0.33
16. Lembaga Tabung Haji 6,204,007 0.33
17. Permodalan Nasional Berhad 6,000,000 0.32
18. Cartaban Nominees (Asing) Sdn Bhd
(Government of Singapore Investment Corporation Pte Ltd for Government of Singapore)
5,313,000 0.29
19. Amanah Raya Nominees (Tempatan) Sdn Bhd
(Amanah Saham Didik)
4,950,300 0.27
20. HSBC Nominees (Asing) Sdn Bhd
(Saudi Arabian Monetary Agency)
4,904,200 0.26
21. HSBC Nominees (Asing) Sdn Bhd
(Pictet And CIE for VKF Investment Ltd)
4,769,000 0.26
22. Citicorp Nominees (Asing) Sdn Bhd
(CB LDN for Stitching Pensioenfonds Voor De Gezondheid Geestelijken Maatschappelijke Belangen)
4,737,800 0.25
23. Citicorp Nominees (Asing) Sdn Bhd
(CBHK for Kuwait Investment Authority)
4,028,900 0.22
24. HSBC Nominees (Asing) Sdn Bhd
(RTCC London for Sprucegrove International Pooled Fund)
3,531,000 0.19
25. Amanah Raya Nominees (Tempatan) Sdn Bhd
(Amanah Saham Malaysia)
3,500,000 0.19
26. Citicorp Nominees (Asing) Sdn Bhd
(Mellon Bank, N.A. for Commonwealth of Massachusetts Pension Reserve Investment Trust)
3,402,600 0.18
27. Amanah Raya Nominees (Tempatan) Sdn Bhd
(Sekim Amanah Saham Nasional)
3,395,400 0.18
28. Citicorp Nominees (Asing) Sdn Bhd
(Ing Insurance Berhad (INV – IL PAR)
3,240,900 0.16
29. HSBC Nominees (Asing) Sdn Bhd
(General Motors Employees Global Group Pension Trust)
3,039,000 0.16
30. Citicorp Nominees (Asing) Sdn Bhd
(Mellon Bank, N.A. for Emerging Markets Investors Fund)
2,991,600 0.16
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
MISC SUBSTANTIAL SHAREHOLDERS
as at 30 June 2004
RHB Nominees (Tempatan) Sdn Bhd - 62.44%
(Petroliam Nasional Berhad)
Employees Provident Fund Board - 5.86%
Total : 68.29 %
1,577,681,523 84.82

Share Performance
Volume (shares)
(Monthly 01/04/2003 to 31/05/2004)
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Volume (shares)
(Monthly 01/04/2003 to 31/05/2004)
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
30 Apr 2003
30 Apr 2003
30 May 2003
30 May 2003
30 Jun 2003
30 Jun 2003
31 Jul 2003
31 Jul 2003
29 Aug 2003
29 Aug 2003
Monthly volume High Low
MISC LOCAL SHARES
30 Sep 2003
30 Sep 2003
31 Oct 2003
MISC FOREIGN SHARES
31 Oct 2003
28 Nov 2003
28 Nov 2003
31 Dec 2003
31 Dec 2003
SIGNIFICANT ANNOUNCEMENTS
30 Jan 2004
30 Jan 2004
27 May 03 Announcement of 4th Quarter Results
22 Jul 03 MISC acquired NOL's Tanker Subsidiary, American Eagle Tankers
26 Aug 03 Announcement of 1st Quarter Results
12 Nov 03 Announcement of 2nd Quarter Results
25 Feb 04 Announcement of 3rd Quarter Results
19 Mar 04 Acquisition of MSE Holdings Sdn. Bhd. (MEH) shares
from Kuok Brothers Sdn. Bhd. and IMC Enterprises Incorporated (IMC)
22 Mar 04 Proposed fund raising exercise
24 May 04 Announcement of 4th Quarter Results
Source: Bursa Malaysia Berhad
Bloomberg
27 Feb 2004
27 Feb 2004
31 Mar 2004
31 Mar 2004
30 Apr 2004
30 Apr 2004
31 May 2004
31 May 2004
RM
15
12
9
6
3
0
RM
15
12
9
6
3
0
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
11

12
MISC...At A Glance
“ Malaysia
International Shipping Corporation Berhad
(MISC), a subsidiary of PETRONAS, is the leading international shipping
line of Malaysia. The principal business of the Corporation consists of
ship-owning, ship management and other related logistics and maritime
transportation services.”
Since its establishment in 1968, MISC has developed into a sound, successful Corporation that
continues to grow on the solid foundation upon which it was built. The public listing of its shares in 1987
and its current standings as the fourth largest company in terms of market capitalisation on the Main
Board of Bursa Malaysia Berhad (formerly known as The Kuala Lumpur Stock Exchange) further
demonstrates its sound standing and viability. As a member of the PETRONAS Group, MISC is expected
to benefit and further strengthen
“
business synergies and economies of
Largest single owner-operator
scale from related operations of its
business.
of LNG tankers in the world
”
Through the provision of reliable, efficient and competitive services, MISC has indeed become a truly
international player, plying over 700 ports in more than 100 countries around the world. Its modern and
well-diversified relatively young fleet of 138 vessels with a combined tonnage of more than 8 million
deadweight tonnes and land – based facilities managed by experienced personnel enable MISC to meet
the various demands of its customers.
Through its wide network of shipping ports and land transportation systems, all linked by the latest
information and logistics systems support, MISC offers the widest possible geographical coverage.
This network also extends to many
“
inland destinations and land-locked
markets. Endowed with such diverse World’s
operations, MISC offers the total
logistics solution to its customers.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
second largest owner-operator
of Aframax tanker fleet
”

MISC Fleet Strength As At 30 June 2004
Excluding FPSO facility Bunga Kertas
Petroleum Tankers
VLCC 3
Aframax 35
Product Tanker 5
LPG 3
Bulk Carriers
46
Panamax 11
Handymax 9
Handysize 15
Multipurpose 1
LNG Tankers
Aman Class (18,8000 cbm) 3
Tenaga Class (130,000 cbm) 5
Puteri Class (130,000 cbm) 5
Puteri Satu Class (137,100 cbm) 4
Chemical Tankers
Melati Class (32,000 DWT) 7
Anggerik Class (30,000 DWT) 4
Semarak Class (16,000 DWT) 2
Melawis Class (8,500 DWT) 2
36
17
15
Containerships
Above 3000 TEUs 4
1000 – 3000 TEUs 8 24
Below 1000 TEUs 12
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

14
Countries & Ports Of Call 2003/2004
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
1. Algeria
Algiers
Arzew
Bethioua
Bejaia
Oran
Skikda
Skikda Bejaia
2. Angola
Palanca
3. Argentina
Bahia Blanca
Buenos Aires
Campana
Ensenada
La Plata
Necochea
Racalada
Rosario
San Lorenzo
4. Aruba
Oranjestad
5. Australia
Adelaide
Albany
Auckland
Bellbay
Bluff
Brisbane
Bunbury
Burnie (Tasmania)
Cairns
Dalrymple Bay
Dampier
Darwin
Derby King
Freemantle
Geelong
Geraldton
Gladstone
Gove
Groote Eylandt
Haypoint
Kwinana
Laminaria
Melbourne
Newcastle
Port Hedland
Port Kembla
Port Pirie
Port Stanvac
Townsville
Varanus Island
Whitnell Bay
Whyalla
6. Bahrain
Bahrain
7. Bahamas, The
Freeport, Bahamas
8. Bangladesh
Chittagong
Mongla
9. Belgium
Antwerp
Ghent
10. Brazil
Altamira
Antoninia
Aratu
Belem
Fortaleza
Itajai
Manaus
Paranagua
Ponta Da Madeira
Porto Trombetas
Praia Mole
Recife, Santos
Rio De Janeiro
Rio Grande
Rio Grande Do Sul
Santos
Sao Francisco
Do Sul
Sepetiba
Trombetas
Tubarao
Vitoria
11. Brunei
Lumut
Seria
12. Bulgaria
Bourgas
Varna
13. Cameroon
Douala
14. Canada
Becancour
Brunswick
Contrecouer
Gros Cacouna
Montreal
Neptune
Pointe Noire
Point Tupper
Port Alfred, Quebec
Port Cartier
Roberts Bank
Seven Island
St. John NB
St. John, NFL
Stewart
Vancouver
Victoria
15. Chile
Antofagasta
Caleta Caloso
Chimbote
Coronel
Huachipato
Huasco
Lirquen
Mejillones
Penco
San Antonio
San Vicente
Valparaiso
16. China
Baoshan
Bayuquan
Beihai
Bing Bong
Changshu
Chiwan
Dalian
Fangcheng
Fuzhou
Haikou
Huangdao
Huangpu
Jiangyin
Jinzhou
Lanshan
Liangyungang
Longkou
Mawan (Chiwan)
Nantong
Ningbo
Qingdao
Qinhuangdao
Rizhao
Shanghai
Shuidong
Shekou
Tianjin
Xiamen
Xijang Terminal
Xingang
Yangpu
Yangzhou
Yantai
Yantian
Zhangjiagang
Zhanjiang
Zhapu Jiaxing
Zhuhai
17. Colombia
Buenaventura
Covenas
Porto Bolivar
Puerto Bolivar
Santa Marta
18. Croatia
Omisaji
19. Costa Rica
Caldera
20. Cyprus
Limassol
Vassiliko
21. Denmark
Allborg
Aarhus
Copenhagen
Fredericia
Great Belt
Kalunbourg
Karstoe
22. Djibouti
Djibouti
23. Ecuador
Esmeraldas
Guayaquil
24. Egypt
Adabiya
Ain Suknar
Alexandria
Damietta
Dekhela
El Dekheila
Port Said
Sidi Kerir
Suez

25. El Salvador
Acajutla
26. Estonia
Tallin
27. Finland
Kotka
Raahe
28. France
Donges
Dunkirk
For-sur-Mer
Fos
lavera
Le Havre
Montaire
Montoir
Nantes
Rouen
Sete
29. Gabon
Oweido
30. Georgia
Batumi
31. Germany
Bremerhaven
Bruke
Hamburg
Wilhem Shaven
32. Ghana
Takoradi
33. Greece
Agoi Theodoroi
Adamas
Mylaki
Piraeus
Volos
Voudio Bay
34. Guatemala
Puerto Quetzal
35. Guinea
Port Kamsar
Umuda
36. Hawaii
Hilo
Honolulu
Kahului
37. Hong Kong
Hong Kong
38. India
Chennai
Cochin
Dahej
Goa
Haldia
Jamnagar
Kandla
Mangalore
Nava Sheva
New Mangalore
Mumbai
Mundra
Paradip
Pipavav
Porbandar
Sikka
Tuticorin
Vadinar
Visakhapatnam
39. Indonesia
Adang Bay
Anyer
Balikpapan
Banjarmasin
Blanlanchang
Belawan
Bitung
Bontang
Cengkareng
Cigading
Cilacap
Cinta
Dumai
Gresik
Jakarta
Kalbut
Karimun
Kuala Tanjung
Lawi-Lawi
Lhokseumawe
ManggisTerminal
Merak
NYPCT
Padang
Pontianak
Pulau Laut
Pulau Sambu
Samarinda
Santan Marine
Terminal
Semarang
Senipah
South Pulau Laut
Surabaya
Tanjung Bara
Tanjung Priok
Tanjung Uban
Tarahan
Teluk Semangka
Tg. Pemancingan
Tg. Wangi
Ujung Padang
Widuri
40. Iran
Bandar Abbas
Bandar Imam
Bandar Mashahr
Kharg Island
41. Iraq
Mina Al Bakri
42. Ireland
Aughinish
Londonderry
43. Italy
Ancona
Augusta
Bari
Cagliari
Genoa
Gioa Tauro
Livorno
Millanzzo
Sarroch
Trieste
Vado Ligure
44. Jamaica
Port Rhoades
45. Japan
Chiba
Chita
Funabashi
Futtsu
Hakata
Hekinan
Hibikinada
Higashi-Harima
Higashi-Ohgishima
Iota
Ishigaki
Iyomishima
Kakogawa
Kashima
Kawasaki
Kimitsu
Kinuura
Kobe
Kushiro
Mizushima
Nagoya
Nanao
Negishi
Niigata
Niihama
Ohgishima
Oita
Onahama
Osaka
Saganoseki
Saiki
Sakaiminato
Senboku I, II
Sendai
Shemonoseki
Shibushi
Shimizu
Sodegaura
Sukumo
Susaki
Tachibana
Tokachi
Tokuyama
Tomakomai
Tokyo
Tsukumi
Ube
Yokkaichi
Yokohama
46. Jordan
Aqaba
47. Kenya
Mombasa
48. Kuwait
Mina Al Ahmadi
Ruwais
Shuaiba
Shuwaikh
49. Latvia
Ventspils
50. Liberia
Buchanan
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
15

16
Countries &
Main Ports Of Call 2003/2004
(continued)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
51. Lithuania
Butinge
Gruntartangi
Klapeida
52. Madagascar
Tamatave
53. Malaysia
Bintulu
Bunga Raya
Marine Terminal
Butterworth
Dulang Marine
Terminal
Kapar
Kekwa Marine
Terminal
Kemaman
Kerteh
Kota Kinabalu
Kuantan
Kuching
Kunak
Labuan
Lahad Datu
Lumut
Malong Marine
Terminal
Manjung, Perak
Melaka
Miri
Pasir Gudang
Penang
Port Dickson
Port Klang
Prai
Sakai
Sandakan
Sibu
Sungai Udang Port
Tawau
Teluk Ewa
Terengganu Crude
Oil Terminal
54. Mauritania
Nouakchott
55. Mauritius
Port Louis
56. Mexico
Cayo Arcas
Coatzacoalcos
Dos Bocas
Guayamas
Lazaro Cardenas
Pajaritos
Santa Rosalia
Ta Kuntah
Tampico
Vera Cruz
57. Morocco
Agadir
Casablanca
Jorf Lasfar
Safi
58. Mozambique
Beira
Maputo
59. Malta
Valentte
60. Namibia
Walvis Bay
61. Netherlands
Amsterdam
Flushing
Ijmuiden
Rotterdam
Sluiskill & Terneuzen
St Eustatius
62. Netherlands
Antilles
Aruba
Bonaire
St. Eustatia
63. New Zealand
Dunedin
Lyttelton
Napier
Nelson
Picton
Tauranga
Timaru
Wellington
Whangarei
64. Nigeria
Bonny Island
Calabar
Forcados
Lagos
Nigeria Ea Terminal
Odudee
Onne
Port Harcourt
Qua Iboe
65. Norway
Farsund
Fredrikstad
Heroya
Mongstad
Narvik
66. Oman
Mina Al Fahal
Muscat
Qalhat
67. Pakistan
Karachi
Port Qasim
68. Poland
Dansk
69. Panama
Balboa
Cristobal
Escobal
Panama
70. Peru
Callao
Puta Lobitos
71. Philippines
Batangas
Bataan
Isabel
Manila
Mariveles
Subic
72. Portugal
Leixoes
73. Qatar
Doha
Mesaieed
74. Republic of
Yemen
Ash Shihr Terminal
75. Romania
Constantza
76. Russia
Kavkaz
Primorsk
Tuapse
Murmansk
Novorossiysk
St. Petersburg
77. Rep Of Congo
Djeno
78. Saudi Arabia
Damam
Jeddah
Jubail
Ras Tanura
Ras Al Khafji
Yanbu
79. Singapore
Singapore
80. Slovenia
Koper
81. South Africa
Cape Town
Durban
Richards Bay
Saldanha Bay
82. South Korea
Busan
Daesan
Inchon
Kunsan
Kwangyang
Masan
Onsan
Pohang
Pusan
Pyongtaek
Tong Yeong
Ulsan
Yosu
83. Spain
Alcanar
Alicante
Algeciras
Aviles
Barcelona
Bilbao
Cadiz

Canary Islands
Cartagena
El Ferrol
Ferrol
Garrucha
Gijon
Huelva
La Pallice
La Skihra
La Spezia
Las Palmas
Leixoes
Tarragona
Tenerife
Valencia
84. Sri Lanka
Colombo
85. Sudan
Bashayer
Port Sudan
86. Surinam
Paranam
87. Sweden
Brofjorden
Frederecia
Gothenburg
Lulea
Oxelosund
88. Syria
Banias
Tartous
89. Taiwan
Hoping
Kaohsiung
Mai Liao
Taichung
Sha Lung
Yung An
90. Thailand
Bangkok
Bangsaphan
Benchamas
Marine Terminal
Khanom
Kohsichang
Laem Chabang
Mapthaput
Platong Marine
Terminal
Rayong
Sriracha
91. Togo
Kpeme
Lome
92. Trinidad &
Tobago
Galeota Point
Point Fortin
Point Lisas
93. Tunisia
Sfax
Tunis
94. Turkey
Alliaga
Bosporous
Canakale
Ceyhan
Gebze
Gemlik
Marmara
Mersin
Nemrut Bay
Tavsancil
95. United Arab
Emirates
Abu Dhabi
Dubai
Fujairah
Hamriya
Jebel Ali
Khor Fakkan
Sharjah
96. United Kingdom
Birmingham
Coryton
Fawley
Felixstowe
Flotta
Gilbraltar
Hamble
Houndpoint
Immingham
Liverpool
London
Niggi Bay
Port Bury, Bristol
Port Talbot
Portbury
Sollumvoe
Southampton
Teesport
Tilbury
Transmere
Whitegate
97. Ukraine
Odessa
Ilichevsk
Yuzhnyy
98. Uruguay
Montevideo
Nueva Palmira
Zona Alpha
99. United States of
America
Baltimore
Barbers Points
Baton Rouge
Baytown
Bayway
Beaumont
Bridgeport
Burnside
Camden
Chalmette
Charleston
Convent
Cove Point
Corpus Christi
Deer Park
Delaware City
Everglades
Falmouth
Freeport Texas
Galveston
Hampton Road
Houston
Hydaburg
Jacksonville
Lake Charles
Long Beach
Long View
Loop
Los Angeles
Meraux
Mobile, Alabama
Mississipi River
Nederland
New Castle
New Orleans
New York
Newark
Norco, La
Pasadena
Pascagoula
Paulsboro
Perth Amboy
Philadelphia
Point Comfort,
Texas
Port Arthur
Port Neches
Portland
Portsmouth
Providence
Sacramento
San Francisco
San Nicholas
Seattle
Smith’s Bluff
South Sabine
Sparrow Point
St. Charles
St. Croix
St. James
St. Petersberg
St. Rose
St. Croix, US
SW Pass
Virgin Island
Tacoma
Tampa
Texas City
Wilmington
100. Venezuela
Amuay Bay
Jose Terminal
La Salina
Maracaibo
Pertigalete
Petrozuata
Puerto Cabello
Puerto La Cruz
Puerto Miranda
101. Vietnam
Campa
Haiphong
Ho Chi Minh
Nha Trang
Randong
Vung Tau
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
17

18
MISC Group Structure
As At 30 June 2004
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
70%
60%
51%
51%
35%
AET Holdings (L) Pte Ltd
(Investment Holdings)
EBC Ltd - Bermuda
(Holding Co)
MISC Enterprises Holdings Sdn Bhd
(Investment Co)
MISC Agencies Sdn Bhd
(Shipping Agent & Warehousing Services)
MISC Capital (L) Ltd
(Investment Holdings)
MISC Integrated Logistics Sdn Bhd
(Integrated Logistics Services)
PETRONAS Tankers Sdn Bhd
(Ship Management)
Puteri Delima Satu (L) Pte Ltd
(Shipowning)
Puteri Firus Satu (L) Pte Ltd
(Shipowning)
Puteri Nilam Satu (L) Pte Ltd
(Shipowning)
Puteri Intan Satu (L) Pte Ltd
(Shipowning)
Puteri Intan Dua (L) Pte Ltd
(Shipowning)
Puteri Zamrud Satu (L) Pte Ltd
(Shipowning)
Malaysian Maritime
Academy Sdn Bhd
(Education & Training for
Seaman & Maritime Personnel)
MISC Nigeria Ltd
(Ship operating & other activities
related to shipping)
Asia LNG Transport Sdn Bhd
(Shipowning/Ship Management)
Asia LNG Transport
Dua Sdn Bhd
(Shipowning/Ship Management)
FPSO Ventures Sdn Bhd
(Operations and Maintenance of
Offshore Terminals)
100%
100%
100%
100%
100%
100%
100%
MISA (B) Sdn Bhd
(Shipping Agent)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
100% MISC Agencies ( Trengganu) Sdn Bhd
(Voluntary Winding-up)
65%
MISC Agencies (Sarawak) Sdn Bhd
(Shipping Agent)
MISC Haulage Services Sdn Bhd
(Container Haulage)
MISC Trucking and
100% Warehousing Services Sdn Bhd
(Trucking, Warehousing &
Forwarding Services)
Puteri Delima Sdn Bhd
(Shipowning)
Puteri Firus Sdn Bhd
(Shipowning)
Puteri Intan Sdn Bhd
(Shipowning)
Puteri Nilam Sdn Bhd
(Shipowning)
Puteri Zamrud Sdn Bhd
(Shipowning)
100%
100%
100%
100%
100%
100%
100%
100%
65%
50%
49%
40%
37%
25%
25%
25%
MISC Agencies (Australia) Pty Ltd
(Shipping Agent)
MISC Agencies (Netherlands) B.V.
(Shipping Agent )
MISC Agencies (UK) Ltd
(Shipping Agent)
MISC (Japan) Ltd
(Port and General Agent)
MISC (Singapore) Pte Ltd
(Shipping Agent)
MISC Information Technology
Sdn Bhd (Voluntary Winding-up)
MISC Ferry Services Sdn Bhd
(Dormant)
MISC Properties Sdn Bhd
(Dormant)
MSE Holdings Sdn Bhd
(Investment Holdings)
Transware Distribution Services
Pte Ltd (Warehousing)
MISC Agencies (Thailand) Co Ltd
(Shipping Agent)
MISC Agencies Lanka (Pvt) Ltd
(Shipping Agent & Freight Forwarding Sevices)
Affin Merchant Bank Berhad
(Merchant Banking)
Malaysia Pakistan Venture Sdn Bhd
(Investment Holdings)
Trans-ware Logistics (Pvt) Ltd
(Inland Container Depot)
Voray Holdings Ltd
(Investment Holdings)
100%
100%
51%
50%
100%
100%
100%
60%
100%
100%
75%
65%
60%
50%
25%
American Eagle Tankers
Inc. Ltd-Bermuda
(Ship Owning & Operating)
Scheepvaartagentuur Nederland
Overzee B.V. (Dormant)
Leo Launches Pte Ltd
(Launch Operator)
Transasia Pool Pte Ltd
(Ship Management)
Malaysia Shipyard & Engineering Sdn Bhd
(Shipbuilding / Shiprepairing & Heavy Engineering)
Malaysia Towage & Transport Sdn Bhd
(Hire & Charter of Tug Boats)
MSE Corporation Sdn Bhd
(Processing of Copper Grit)
MSE-ATB Sdn Bhd
(Process Equipment for Petrochemical,
Oil & Gas and Power Generation Plants)
Techno Indah Sdn Bhd
(Sludge Treatment & Generation of Energy)
Malaysian Tank Cleaning
Company Sdn Bhd (Dormant)
Mapak Qasim Bulkers Pvt Ltd
(Storage of Edible Oil)
Mapak Edible Oil Pvt Ltd
(Dormant)
Hubei Zhong Chang Vegetable
Oil Co Ltd (Vegetable Oil Refinery)
Tianjin Voray Bulking Installation
Co Ltd (Storage of Vegetable Oil)
Beijing King Voray Edible Oil
Co Ltd (Vegetable Oil Refinery)

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
EBC Assets Ltd - Bermuda
(Investment Holdings)
EBC Assets Ltd - Liberia
(Investment Holdings)
EBC Holdings Ltd - Liberia
(Investment Holdings)
Gangga Nagara Shipping Ltd - Liberia
(Dormant)
MISC Ship Management Sdn Bhd
(Dormant)
Sea Maestro Shipping Ltd - Liberia
(Dormant)
Esperance Shipping Ltd - Liberia
(Dormant)
Fantasy Shipping Ltd - Liberia
(Dormant)
Fragrant Shipping Ltd - Liberia
(Dormant)
Growth Shipping Ltd - Liberia
(Dormant)
Gunner Shipping Ltd - Liberia
(Dormant)
Grand Way Investment Ltd - Liberia
(Dormant)
Humanity Shipping Ltd - Liberia
(Dormant)
Luminous Shipping Ltd - Liberia
(Dormant)
Pacific Trident Ltd - Hong Kong
(Dormant)
Roseland Shipping Ltd - Liberia
(Dormant)
Sea Maiden Shipping Ltd - Liberia
(Dormant)
Sun Shipping Ltd - Liberia
(Dormant)
Torrent Shipping Ltd - Liberia
(Dormant)
Trailblazer Shipping Ltd - Liberia
(Dormant)
25%
100% Thunder Bay Investment Ltd - Liberia
(Dormant)
100%
100%
100%
100%
100%
100%
Moor Industrial Transport Ltd - Jersey
(Investment Holdings)
Peddler Shipping Ltd - Liberia
(Shipowning)
Rhinestone Shipping Ltd - Liberia
(Shipowning)
Skystrong Shipping Ltd - Liberia
(Dormant)
Dinosaur Shipping Ltd - Liberia
(Dormant)
EBC Shipping Ltd - Bermuda
(Ship Management)
EBC Shipping Ltd - Liberia
(Ship Management)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
American Eagle Tankers UK Ltd
(Commercial Ops. & Chartering)
American Marine and Offshore
Services Ltd (Investment Holdings)
MTL Petrolink Corp
(Investment Holdings)
American Eagle Tankers Inc. Ltd
Singapore branch (Management Office)
Crystal Shipowning Co. Pte Ltd
(Shipowning)
Eagle Shipmanagement Pte Ltd
(Ship Management)
Trilith Shipping Pte Ltd
(Shipowning)
Trilithon Shipping Pte Ltd
(Shipowning)
Bison Shipping Ltd - Liberia
(Shipowning)
Happy Venture Ltd - Liberia
(Investment Holdings)
Safety Shipping Ltd - Liberia
(Shipowning)
Selesa Shipping Ltd - Liberia
(Shipowning)
Logger Shipping Ltd - Liberia
(Dormant)
Marquisa Shipping Ltd - Liberia
(Dormant)
Pacific Mattsu Shipping Ltd - Liberia
(Dormant)
Plate Shipping Ltd - Liberia
(Dormant)
Spectrum Shipping Ltd - Liberia
(Dormant)
100%
100%
100%
100%
100%
100%
50%
American Eagle Tankers
Agencies Inc (Property owning)
Pelican Offshore Services
Company Inc (Shipowning/Lightering)
OMIP, Inc
(Property Owning)
Offshore Marine Services Inc
(Property Owning)
Harlink Corp
(Shipowning)
Neulink Corp
(Shipowning)
Olivier Shipping Ltd - Liberia
(Shipowning)
19
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

20
Corporate Information
Board of Directors
Chairman
Tan Sri Dato Sri Mohd Hassan bin Marican
Managing Director/Chief Executive Officer
Dato’ Hj. Mohd Ali bin Hj. Yasin
(Deceased on 19 April 2004)
Dato’ Shamsul Azhar bin Abbas
(Appointed w.e.f. 1 July 2004)
Directors
Dato Sri Liang Kim Bang
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff
bin Hj. Hussain
Mr. Harry K. Menon
Dato’ Halipah binti Esa
(Appointed w.e.f. 26 April 2004)
Secretary
Dato’ Hj. Mohd Ali bin Hj. Yasin
(Deceased on 19 April 2004)
Fina Norhizah binti Hj. Baharu Zaman
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Tan Sri Dato Sri Mohd Hassan bin Marican
Registered Office
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 03-2273 8088
Fax : 03-2273 6602
Telex : Naline MA 30325, MA 32449
Cable : MALAYASHIP KUALA LUMPUR
Website : www.misc-bhd.com
Auditors
Ernst & Young
Level 23A Menara Milenium
Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Dato’ Shamsul Azhar bin Abbas
(Appointed w.e.f. 1 July 2004)
Principal Bankers
Bumiputra-Commerce Bank Berhad
Malayan Banking Berhad
Hongkong Bank Malaysia Berhad
Share Registrar
Symphony Share Registrars Sdn Bhd
(formerly known as Malaysian Share
Registration Services Sdn Bhd)
Level 26, Menara Multi Purpose
Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel : 603-2721 2222
Fax : 603-2721 2530/31
Stock Exchange Listing
The Main Board of Bursa Malaysia Berhad

Dato Sri Liang Kim Bang
Harry K. Menon
Fina Norhizah binti Hj. Baharu Zaman
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff bin Hj. Hussain
Dato’ Halipah binti Esa
21
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

22
Profile Of Directors
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Tan Sri Dato Sri Mohd Hassan bin Marican, aged 51, is the President and Chief
Executive Officer of Petroliam Nasional Berhad (PETRONAS). A Fellow of the
Institute of Chartered Accountants in England and Wales, as well as a member
of the Malaysian Institute of Accountants and the Malaysian Institute of Certified
Public Accountants, he joined PETRONAS in 1989 as Senior Vice President of
Finance and was appointed President and CEO in February 1995.
Tan Sri Dato Sri Mohd Hassan is a member of the PETRONAS Board of Directors,
and is Chairman of three public listed companies under the Group, namely
PETRONAS Dagangan Berhad, PETRONAS Gas Berhad and Malaysia
International Shipping Corporation Berhad. He is also the Chairman of Engen
Limited, South Africa, a subsidiary of PETRONAS.
Beyond PETRONAS, Tan Sri Dato Sri Mohd Hassan is a Board Member of the
Malaysia-Thailand Joint Authority, which oversees petroleum development in the
overlapping area between Malaysia and Thailand. He is also a member of the
International Investment Council for the Republic of South Africa established by
President Thabo Mbeki.
Tan Sri Dato Sri Mohd Hassan is an Energy Governor and the current Energy
Community Chairman for the World Economic Forum (WEF) as well as a member
of the WEF’s Council of 100 Leaders. He is also a member of the Commonwealth
Business Council.

Dato’ Shamsul Azhar bin Abbas, aged 52, is the Vice President of PETRONAS
Logistics and Maritime Business and concurrently the Managing Director/Chief
Executive Officer and Board Member of MISC, a subsidiary of PETRONAS since
1 July 2004. He is a member of the PETRONAS Board of Directors and sits on
the Board of PETRONAS Carigali Sdn. Bhd., among other PETRONAS
subsidiaries and associate companies in Malaysia and overseas.
Dato’ Shamsul Azhar holds a degree in Political Science from Science University
of Malaysia, M. Sc. in Energy Management from University of Pennsylvania, USA
and Technical Diploma in Petroleum Economics from Insitute Francaise du
Petrole (IFP), France.
He joined PETRONAS in 1975 as an executive trainee and between 1975 to
1991, he held various managerial positions in PETRONAS including Manager,
Product Trading and Supply (1980) and Manager, Economics and Planning
(1986), Senior Manager Strategic Planning Department (1988) before becoming
the Executive Assistant to the President (1991).
In 1994, he took up the position as General Manager, Corporate Planning &
Business Development and was promoted to Senior General Manager,
Corporate Planning the following year.
In 1997, Dato’ Shamsul Azhar was promoted to the position of Vice President,
PETRONAS Petrochemical Business and was subsequently appointed as the
Vice President of PETRONAS Oil Business in 1999. In 2002, he was appointed
as the Vice President of PETRONAS Exploration & Production Business.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
23

24
Profile Of Directors
(continued)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Dato Sri Liang Kim Bang, aged 67, a Malaysian, is an Independent Non-Executive
Director of MISC. He was appointed to the Board in 1972. Presently, he is the Non-
Executive Chairman of CMS Steel Berhad and an Independent Non-Executive
Director of PPB Group Berhad, PPB Oil Palms Berhad, Cahya Mata Sarawak Berhad,
Rashid Hussain Berhad, CMS Trust Management Berhad and several other
companies.
Dato Sri Liang graduated from the University of Malaya with Bachelor of Arts and
Bachelor of Arts (Honours) degrees. He also undertook a post-graduate course in
Public Administration in the University of Cambridge, England. Dato Sri Liang held
various positions in the Sarawak Civil Service, and prior to his retirement in 1994, was
the Sarawak State Financial Secretary.
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff bin Hj. Hussain, aged 58, is an Independent
Non-Executive Director of MISC since 27 June 1998. He holds an MBA from Ohio
University and a Ph.D in Public Policy from the University of Southern California Los
Angeles, United States of America.
He has served in various capacities in the Ministry of Agriculture, Selangor State
Government, the National Institute for Public Administration (INTAN), Ministry of
Education, Socio Economic Research Unit, Prime Minister’s Department and
Secretary General of the Ministry of National Unity and Social Development. Since
7 May 1998, he has served as Director General, Implementation Coordination Unit,
Prime Minister’s Department.
He is also the Chairman of the MISC Board Audit Committee.

Mr. Harry K. Menon, aged 54, is an Independent Non-Executive Director of MISC
since 30 August 2001. He is a Fellow of the Institute of Chartered Accountants in
England and Wales, as well as a member of the Malaysian Institute of Accountants
and the Malaysian Institute of Certified Public Accountants.
He spent 13 years in public practice at Hanafiah Raslan & Mohamad, 7 years of which
as a Partner. He joined Public Bank Berhad as General Manager and was
subsequently promoted to Executive Vice-President. After working with two public
listed companies, he joined Putrajaya Holdings Sdn Bhd as its Chief Operating Officer
from 1997 – 2000.
He is presently the Group Chief Executive Officer and Executive Director of AWC
Facility Solutions Berhad and is a Non-Executive Director of SPK-Sentosa
Corporation Berhad and AKN Messaging Technologies Berhad. He is also a Director
of Putrajaya Holdings Sdn Bhd.
He is also a member of the MISC Board Audit Committee.
Dato’ Halipah binti Esa, aged 54, is an Independent Non-Executive Director of MISC
since 26 April 2004. She graduated from the University of Malaya with an honours
degree majoring in Economics and later was conferred the Masters of Economics
degree from the same University.
She started her career with the Administrative and Diplomatic Services in 1973 as an
Assistant Secretary in the Economic Planning Unit (EPU) in the Prime Minister’s
Department and subsequently held various other positions in the EPU. She is
presently the Deputy Secretary General (Policy), Ministry of Finance.
She sits on the Board of Inland Revenue Board, Employees Provident Fund, Pensions
Trust Fund, Kontena Nasional Berhad and Amanah Ikhtiar Malaysia.
She is also a member of the MISC Board Audit Committee.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
25

26
Management Committee
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Dato’ Shamsul Azhar bin Abbas, aged 52, is the Vice President of PETRONAS
Logistics and Maritime Business and concurrently the Managing Director/Chief
Executive Officer and Board Member of MISC, a subsidiary of PETRONAS since
1 July 2004. He is a member of the PETRONAS Board of Directors and sits on
the Board of PETRONAS Carigali Sdn. Bhd., among other PETRONAS
subsidiaries and associate companies in Malaysia and overseas.
Dato’ Shamsul Azhar holds a degree in Political Science from Science University
of Malaysia, M. Sc. in Energy Management from University of Pennsylvania, USA
and Technical Diploma in Petroleum Economics from Institute Francaise du
Petrole (IFP), France.
He joined PETRONAS in 1975 as an executive trainee and between 1975 to 1991
he held various managerial positions in PETRONAS including Manager, Product
Trading and Supply (1980) and Manager, Economics and Planning (1986), Senior
Manager Strategic Planning Department (1988) before becoming the Executive
Assistant to the President (1991).
In 1994, he took up the position as General Manager Corporate Planning &
Business Development and was promoted to Senior General Manager,
Corporate Planning the following year.
Managing Director /
Chief Executive Officer
Dato’ Shamsul Azhar bin Abbas
In 1997, Dato’ Shamsul Azhar was promoted to the position of Vice President,
PETRONAS Petrochemical Business and was subsequently appointed as the
Vice President of PETRONAS Oil Business in 1999. In 2002, he was appointed
as the Vice President of PETRONAS Exploration & Production Business.

Senior General Manager
Liner & Logistics Business
Abdul Aziz bin Meor Ngah
Senior General Manager
Fleet Management Services
Nordin bin Mat Yusoff
Senior General Manager
Group Business Development
Abdul Rahim bin Abdul Rahman
Regional Business Director
(Europe, Americas, Africa & FSU)
Amir Hamzah bin Azizan
General Manager
LNG Business And
Petronas Tankers Sdn Bhd
Ahmad Zohri bin Ahmad Zohri
General Manager
Tanker Business
Gunaseharan a/l R. Ganapathy
General Manager
Bulk Services
Baharudin bin Mydin
General Manager
Human Resource
Mohd Hisham bin Mohd Rapee
General Manager
Financial Services
Noraini binti Che Dan
General Manager
Corporate Planning Services
Michael Ting Sii Ching
Abdul Aziz bin Meor Ngah, aged 53, is the Senior General Manager, Liner & Logistics Business.
He has over 29 years of experience in the shipping industry and served in various capacities in MISC
including Director Liner International Services, Director Corporate Planning and Director Offshore
Services. He was the Managing Director of Hanjin Lines Agencies before moving on to begin his
own consultancy work in areas of management turnaround, integrated logistics management and
tax consultant on Customs and Excise issues. In his current capacity, he sits as a member of the
International Council of Container Operators (Box Club), World Shipping Council and a Director of
Through Transport Club of Bermuda and Eurasia and various subsidiaries of MISC Berhad.
Abdul Aziz graduated with a Diploma in Accountancy from MARA Institute of Technology and is a
member of the Chartered Institute of Logistics and Transport, United Kingdom and Malaysia Charter.
Nordin bin Mat Yusoff, aged 45, is the Senior General Manager, Fleet Management Services.
He joined PETRONAS in 1989 and has served in various capacities in PETRONAS Carigali Sdn. Bhd.
and PETRONAS Tankers Sdn. Bhd. before joining MISC in 2001.
Prior to joining PETRONAS, he was with Malaysia Shipyard and Engineering (MSE) Sdn. Bhd. and
was involved in project management of various new shipbuilding and offshore structures fabrication
works.
He currently sits as Committee member of the various Classification Societies and international
shipping organisations. He is also a Director of P&I Club and various subsidiaries of MISC Berhad.
Nordin graduated from University of Glasgow, Scotland with a degree in Naval Architecture & Ocean
Engineering and is a registered professional engineer with the Board of Engineers, Malaysia.
Abdul Rahim bin Abdul Rahman, aged 50, is the Senior General Manager, Group Business
Development.
He serves as a Board Member of the Maritime Institute of Malaysia (MIMA) and also sits as a
member of the Pasir Gudang Local Authority Advisory Council, a member of the Malaysian Defence
Industry Council (MDIC) and Committee member of Classification Society. He is also Director of
various subsidiaries of MISC Berhad.
Prior to joining MISC in May 2004, he served the Shell Group of Companies for 13 years in various
capacities including Head of Construction at Sarawak Shell Berhad, Company Site Representative,
Zeit Bay Project at Shell Egypt and Project Manager at Shell Joint-Venture Operation in Netherlands.
He also served in Malaysia Shipyard And Engineering Sdn. Bhd. for 13 years and was the Chief
Executive Officer for 7 years until April 2004.
Abdul Rahim graduated with an honours degree in Mechanical Engineering from Sheffield
University, United Kingdom and is a registered Professional Engineer with the Board of Engineers
Malaysia and Member of the Institute of Engineers, Malaysia.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
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28
Management
Committee
(continued)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Amir Hamzah Bin Azizan, aged 37 is the Regional Business Director (Europe,
Americas, Africa and FSU) of MISC stationed in London, United Kingdom.
He is a member of the Lloyds Asia Shipowners Committee. Within MISC, he also serves
as Chairman of American Eagle Tankers Inc. Ltd and sits on the Boards of a number of
subsidiaries of the MISC Group of Companies.
He joined MISC in the year 2000 and was the Group's General Manager of Corporate
Planning Services before assuming his current role. Prior to joining PETRONAS, he served
the Shell Group of Companies for 10 years in various capacities including Head of
Financial Services and Manager Planning & Support at Sarawak Shell Berhad, Marketing
Credit Accountant at Shell Singapore Pte Ltd, Internal Auditor at Shell Eastern Petroleum
Pte Ltd, and Senior Treasury Advisor at Shell International Ltd, London.
Amir Hamzah graduated with Bachelor of Science degree in Management (majoring in
Finance and Economics) from Syracuse University, New York. He also attended the
Stanford Executive Progamme at Stanford University, USA.
Ahmad Zohri bin Ahmad Zohri, aged 52, is the General Manager, LNG Business.
He sits on the Board of PETRONAS Maritime Services Sdn Bhd, and also serves on the
Boards of the LNG ship-owning subsidiaries of MISC. He has served in various
capacities in the PETRONAS Group since 1981, covering upstream and downstream
sectors, including as CEO of PETRONAS Maritime Services Sdn Bhd and Senior
Manager in Malaysia LNG Sdn Bhd.
Prior to joining PETRONAS, Ahmad Zohri was a Lecturer at Akademi Laut Malaysia and
University Putra Malaysia, after graduating in 1977 from Liverpool Polytechnic, U.K. with
Bachelor of Science (Hons.) degree in Nautical Studies majoring in Shipping Business
and Port Management. He is a qualified mariner having served with Ocean Fleets Ltd.,
a U.K. based ship management company, for 8 years.
Gunaseharan a/l R. Ganapathy, aged 49, is the General Manager, Tanker Business.
He joined MISC’s shore services in 1992 and was attached to the Petroleum Services
Unit. In 1995, he was appointed the Project Manager of Petroleum Services and in 1996
as Manager Petroleum Services. In 2000, he was appointed as Head, Petroleum
Business Unit and subsequently, in 2001, he was given the additional responsibility of
leading the Chemical Business Unit. He serves on the Boards of a couple of subsidiaries
of MISC Group of Companies. He is also an Exco Member of MASA (Malaysian
Shipowners’ Association).
Gunaseharan graduated with an MBA from University of Bath, U.K. and has also
completed the Qualifying Examination of the Institute of Chartered Shipbrokers, London.

Baharudin bin Mydin, aged 54, is the General Manager, Bulk Services.
He joined PETRONAS in 1975 and has served in various capacities within the PETRONAS Group including
General Manager LPG and Petroleum Products Trading as well as Senior Manager Sales and Marketing,
Malaysia LNG Sdn Bhd, Senior Manager Commercial, Malaysia LNG Tiga Sdn Bhd and Senior Manager
Planning and Chartering, Petronas Tankers Sdn Bhd. Prior to assuming his current position, he was the
Senior Manager Strategy and Business Development Corporate Planning Unit of MISC.
Baharudin graduated from National University of Malaysia (UKM) with a Bachelor of Arts degree in
Economics and Management.
Mohd. Hisham bin Mohd. Rapee, aged 52, is the General Manager, Human Resource.
He joined PETRONAS in 1983 and has wide experience in Human Resource and Administration, having
held senior managerial positions in human resource in PETRONAS Carigali Sdn Bhd, PETRONAS Tankers
Sdn Bhd and PETRONAS Holdings.
Mohd Hisham graduated from University of Malaya in 1975 with an honours degree in Arts (History).
He is also a graduate of the Senior Management Development Programme – INSEAD.
Noraini binti Che Dan, aged 48, is the General Manager, Financial Services.
Prior to joining MISC, she served Pernas International Holdings Berhad for 15 years in various capacities
including Group General Manager Finance and Chief Financial Officer.
She sits on the Board of Labuan Re Insurance and also serves on the Board of MISC subsidiaries.
She graduated from University of Manchester with an honours degree in Economics. She is a member of
the Malaysian Institute of Accountants and The Malaysian Institute of Certified Public Accountants.
Michael Ting Sii Ching, aged 48, is the General Manager, Corporate Planning Services.
Prior to joining MISC, he served the Arthur Andersen/HRM Consulting Division for around 9 years as
Senior Consulting Manager (final position) before leaving to join the PhileoAllied Group to head its
Corporate Finance Business Unit as General Manager/Executive Director for over 8 years. Subsequent to
that, he started and managed his own Corporate, Management and Financial Advisory Practice for two
and half years before joining MISC.
He graduated with a Bachelor of Business Administration degree (majoring in Accounting and MIS)
from Simon Fraser University, Canada.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
29

30
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

committed to corporate
well-being through
strong leadership & good
corporate governance
“
”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
31

32
Our Corporate
Governance Statement
“ The Company is committed to achieve high and excellent standards
of corporate governance throughout the Group and to adhere to the highest
level of integrity and ethical standards in all of its business dealings.”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The Board of Directors of Malaysia International Shipping Corporation Berhad
(the Board) is committed to the principles of corporate governance in the Malaysian
Code of Corporate Governance (“the Code”) and to ensuring that the highest
standards of corporate governance is applied throughout the Group. The Board
strives to adopt the substance behind corporate governance prescriptions and not
merely the form.
The Board is pleased to provide the following statement, which outlines the main
corporate governance practices.
The Board of Directors
An experienced and dedicated Board consisting of members with a wide range of
financial, business and public service backgrounds leads and controls the Group
effectively. The Group recognises the vital role played by the Board of Directors in the
stewardship of its direction and operations, and ultimately the enhancement of long-
term shareholder value. The Directors bring depth and diversity in their expertise to the
leadership of the challenging and highly competitive shipping and integrated logistic
business.
The Board reserves material matters to itself for decision, which includes the overall
Group strategy and direction, acquisition and divestment policy, approval of major
capital expenditure projects and significant financial matters, as well as succession
planning for top management.

Composition
The Board comprises of 6 members, comprising of Chairman, who is a Non-
Executive Director, an Executive Director who is the Managing Director/Chief
Executive Officer and four (4) Independent Non-Executive Directors as defined under
the Listing Requirements of Bursa Malaysia Berhad (formerly known as Kuala Lumpur
Stock Exchange Berhad). The presence of independent non-executive directors of
the calibre necessary to execute sufficient weight in Board decisions creates a
balance in the Board.
A brief profile of each Director is presented on pages 22 to 25 of this Annual Report.
There is a clear division of responsibilities between the roles of the Chairman and the
Managing Director/Chief Executive Officer to ensure a balance of power and
authority. The Chairman is primarily responsible for the orderly conduct and working
of the Board whilst the Managing Director/Chief Executive Officer is responsible for
the overall operations of the business and the implementation of the Board’s
strategies and policies. The Managing Director/Chief Executive Officer is assisted in
managing the business on a day-to-day basis by the Management Committee, which
he chairs and which meets twice a month.
All the Non-Executive Directors are independent of management and free from any
business or other relationships that could materially interfere with the exercise of their
independent judgement. They have the calibre to ensure that the strategies proposed
by the Management are fully deliberated and examined in the long term interest of the
Group, as well as the shareholders, employees and customers.
Board Meetings
During the 12 months period ended
31 March 2004, five meetings of the
Board were held. A majority of the
Directors attended all the Board
meetings held during their tenure.
Details of attendance are presented on
page 37 of this Annual Report.
The agenda and a full set of papers for
consideration are timely distributed
prior to each Board meetings of the
Board to ensure that Directors have
sufficient time to study them and be
properly prepared for discussion and
informed decision-making.
A comprehensive and balanced
financial and non-financial informations
are encapsulated in the papers covering
amongst others, strategic, operational,
regulatory, marketing and human
resources issues.
The Company Secretary properly
maintains minutes of the Board
meetings, which include a record of the
decisions and resolutions of the Board
meetings.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
33

34
Our Corporate Governance
Statement
(continued)
The Directors have unhindered access
to the advice and services of the
Company Secretary who is responsible
for ensuring that Board meeting
procedures are followed and that
applicable rules and regulations are
complied with.
Appointment and Re-election of
Directors
The Corporation’s Articles of
Association require that at least one
third of the Directors shall retire at every
Annual General Meeting and that each
Director, shall retire from office at least
once every three years but shall be
eligible for re-election. Directors who
are appointed by the Board shall hold
office until the next Annual General
Meeting of the Corporation when they
shall retire and be eligible for re-election
by the shareholders.
Nomination Committee
The Board itself functions as a
Nomination Committee.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
This Committee is empowered to bring to the Board its recommendations on the
appointment of new Executive and Non-Executive Directors and the re-election of
Directors who retire by rotation in accordance with the Corporation’s Articles of
Association. Approved recommendations are then further recommended by the
Board to the shareholders at the Annual General Meeting for the shareholders’
approval.
All members of the Committee participate in assessing, identifying, recruiting,
nominating, appointing and orienting suitable candidates who can contribute effectively
to the growth of the Corporation. Any Committee member who has interest in any
matter raised by the Committee abstains himself from the deliberations and voting.
The Committee also ensures that the Board has an appropriate balance of expertise
and abilities. The effectiveness of the Board as a whole and the contribution of each
Director are also assessed.
Mandatory Accreditation Programme/Continuing Education Programme
All Members of the Board have attended the Mandatory Accreditation Training
Programme (MAP) as prescribed in Practice Note No. 5/2001 Training For Directors
issued in relation to the Listing Requirements. Directors are encouraged and are
attending continuous education programmes and seminars to keep abreast with
developments in the market place.
Eventhough it is only compulsory for all public listed companies’ directors to attend
MAP and CEP Courses to the satisfaction of Bursa Malaysia Training Sdn Bhd
(formerly known as KLSE Training Sdn Bhd), we have encouraged non-public listed
companies’ Directors in our Group to attend for both of the training programmes so
as to place higher standard on them in equipping themselves to effectively discharge
their duties as directors.

Directors’ Remuneration
The Board, as a whole, recommends the remuneration of each Director to the
shareholders for approval at the Annual General Meeting. The Directors concerned do
not participate in the deliberations and voting on decisions in respect of their own
remuneration packages.
Remuneration Committee
The Board itself decides on the remuneration policy and terms of conditions of
service for the Group as well as the remuneration of members of the Management
Committee. The policy is to provide the remuneration packages necessary to attract,
retain and motivate directors of the quality required to manage the business of the
Company and to align the interest of the Directors with those of shareholders.
Matters concerning the remuneration of senior staff of the Group excluding members
of the Management Committee are considered by the Management Development
Committee.
In effect, therefore MISC has a Remuneration Committee at two levels.
Communication with Investors and Shareholders
The Group values dialogue with investors and analysts. Briefing sessions are held for
analysts twice a year on the Group’s performance. Presentations are made as and
when appropriate to explain the Group’s strategy, performance and major
developments. Any information that may be regarded as undisclosed material or
price sensitive will not be disclosed in the presentation nor will it be given to any
individual shareholder or shareholder group until after the announcement to Bursa
Malaysia Berhad (formerly known as KLSE) has been made.
The Company’s dialogue with
shareholders at the Annual General
Meeting (AGM) is the principal forum for
interaction with its valued shareholders
and it provides the opportunity to gather
views of, and answer question from, both
the private and institutional shareholders
on all issues relevant to the Company.
At each Annual General Meeting, the
Board presents the progress and
performance of the business and
shareholders are encouraged to
participate in the question and answer
session both on the resolutions to be
passed as well as about the Group’s
operations in general.
Accountability and Audit
In terms of financial reporting the Board is
committed to provide and present a
balanced and meaningful assessment of
the Group’s financial performance and
prospects at the end of the financial year,
primarily through the annual financial
statements, and quarterly announcement
of results to shareholders as well as
the Chairman’s statement and review
of operations in the Annual Report.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
35

36
Our Corporate Governance
Statement
(continued)
The Board is assisted by the Board
Audit Committee to scrutinise
information for the Group’s financial
reporting processes, accuracy,
adequacy, completeness and the
quality of its financial reporting.
Board Audit Committee
The Board Audit Committee consists of
four independent Non-Executive
Directors with Tan Sri Dato’ Seri Dr. Hj.
Zainul Ariff bin Hj. Hussain as Chairman.
The composition and Terms of
Reference of the Board Audit
Committee are also presented on page
49 of this Annual Report. The Board
Audit Committee met four times during
the financial year. A majority of the
Committee members attended all
meetings. Details of attendance are
presented on page 37 of this Annual
Report.
The Managing Director, the General
Manager Financial Services, the
General Manager Internal Audit, the
Head of Ship Management Audit and
the External Auditors, as required, were
in attendance at all the meetings.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
In addition to the duties and responsibilities set out in the Terms of Reference, the
Board Audit Committee also acts as a forum for discussion on internal control issues
and contributes to the Board’s review of the effectiveness of the Company’s internal
control and risk management systems. The Board Audit Committee also conducts a
review of the internal audit functions and ensures that no restrictions are placed on
the scope of statutory audits and on the independence of the internal audit functions.
The Board Audit Committee meets the external auditors to discuss the audit
memorandum, the annual financial statements and audit findings and whenever
deemed necessary.
The minutes of the Board Audit Committee are formally tabled to the Board for noting
and action, where necessary.
Internal Control
Information on the Group’s internal control is presented in the Statement on Internal
Control set out on page 38 of this Annual Report.
Relationship with External Auditors
The Board ensures that there are formal and transparent arrangements for the
maintenance of an objective and professional relationship with the external auditors’
in compliance with the accounting standards in Malaysia. The duties of the Board
Audit Committee in relation to the role of the external auditors are included in the
Board Audit Committee’s terms of reference as presented on pages 44 to 45 of this
Annual Report.

Details of Attendance at Meetings held in the
Financial Year Ended 31 March 2004
Board Of Board Meetings Board Audit
Directors Committee (BAC)
Maximum Maximum
Meetings possible Meetings possible
attended to attend attended to attend
Tan Sri Dato Sri
Mohd Hassan
bin Marican 5 5 – –
Dato’ Hj. Mohd
Ali bin Hj. Yasin 5 5 – –
Dato Sri Liang
Kim Bang 5 5 3 4
Datuk Siti Hadzar
Mohd Ismail 3 5 2 4
Tan Sri Dato’ Seri
Dr. Hj. Zainul Ariff
bin Hj. Hussain 5 5 4 4
Dato’ Hamzah
bin Bakar 2 2 – –
Mr. Harry K. Menon 4 5 4 4
Tan Sri Dato Sri
Mohd Hassan
bin Marican +
Note:
+ Non-Executive Director
* Executive Director
Directors’ Remuneration for the
Financial Year Ended 31 March 2004
■ Independent Non-Executive Director
Board BAC BAC
Annual Attendance Annual Attendance
Fees Fees Fees Fees Total
60,000 2,000 – – 62,000
Dato’ Hj. Mohd
Ali bin Hj. Yasin* – – – – –
Dato Sri Liang
Kim Bang ■
36,000 2,000 8,400 1,200 47,600
Datuk Siti Hadzar
binti Mohd Ismail ■ 32,647 1,200 8,400 800 43,047
Tan Sri Dato’ Seri
Dr Hj Zainul Ariff
bin Hj. Hussain ■
Dato’ Hamzah
bin Bakar ■
Mr. Harry
K. Menon ■
36,000 2,000 12,000 1,600 51,600
9,666 800 – – 10,466
36,000 1,600 8,400 1,600 47,600
Total 210,313 9,600 37,200 4,800 262,313
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
37

38
Statement On Internal Control
Introduction
The Malaysian Code on Corporate Governance requires the Board of
Directors (Board) of public listed companies to maintain a sound system
of internal control to safeguard shareholders’ investment and the
Group’s assets.
Bursa Malaysia Berhad Listing
Requirements, Paragraph 15.27 (b)
requires the Board to make a statement
about the state of internal control of the
listed entity as a Group.
The Board of Malaysia International
Shipping Corporation Berhad (MISC) is
committed to continuously improve the
Group’s system of internal control and
is pleased to provide the following
statement.
Accountability of the Board
The Board of MISC acknowledges its
overall responsibility for the Group’s
system of internal control and its
effectiveness to safeguard the
shareholders’ investment and the
Group’s Assets. This includes reviewing
the strategic direction, financial,
operational and compliance controls
and the risk management policies and
procedures.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The Board defines risk parameters and standards guided by the corporate objective
to maximize long term shareholders’ value whilst meeting the needs of the customers,
employees and all related stakeholders. In discharging its stewardship
responsibilities, the Board has defined the risk management framework to identify the
key risk areas, evaluate the impact and set policies relating to the risks and the
relevant control thereof, of which details are set-out in the following page. This is then
delegated to the Management to implement the Board’s direction & policies on risk
and control.
It should be noted that the system of internal control is designed to manage and
control risks appropriately rather than eliminating the risk of failure, to achieve
business objectives. Accordingly, these internal controls systems can only provide
reasonable and not absolute assurance against material misstatement or loss or the
occurrence of unforeseeable circumstances.
The Board confirms that there is a continuous process for identifying, evaluating and
managing the significant risks faced by the Group, which has been in place for the
financial year under review.
The process is regularly reviewed by the Board and is in accordance with the
guidance as contained in the publication – Statement on Internal Control :
Guidance for Directors of Public Listed Companies.

Risk Management Framework
The Board has endorsed the establishment of a Risk Advisory Group (RAG) and
identified that MISC is exposed to four (4) major risks namely Maritime Risk, Credit
Risk, Country Risk and Finance Risk.
The identified four risk committee/councils shall report to the RAG on any issues and
developments pertaining to the respective risk areas.
A proper structure and reporting framework has been established to ensure risks are
being monitored, assessed and reviewed regularly as reflected below:
Board of Directors (Board)
Managing Director (MD) / Management Committee (MC)
Maritime Risk Council
(MRC)
MISC Credit Committee
(MCC)
Risk Advisory Group (RAG)
Finance Risk Council
(FRC)
Country Risk Council
(CRC)
Risk advisory group meeting
in progress
The RAG in the capacity of overseeing
overall risks in MISC is responsible to
advise the Managing Director (MD) /
Management Committee (MC) on
issues relating to :
• reviewing policies, procedures and
guidelines related to risk
management in line with market
changes over time
• reviewing positions and exposures
to ensure compliance with group
policy and recommend corrective
actions
• addressing issues arising from
business lines and recommend
solutions to management
• advising management on risk limits
The RAG Meeting is scheduled to meet
regularly and updates any risk
management issues to the MD/MC and
Board on a quarterly basis respectively.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
39

40
Statement On
Internal Control
(continued)
The Maritime Risk Council (MRC) is
responsible to ensure various maritimerelated
risks are identified and all
necessary measures are in place for
MISC to comply with the stringent
international safety and environmental
standards. Continual assessment and
profiling is carried out to ensure
preventive and recovery measures are
adequate in the challenging maritime
environment. A Maritime Risk Profiling
workshop was conducted during the
year to revalidate the Maritime Risk
exposure. Further improvements on
preventive and recovery controls have
been identified to be implemented to
ensure risk exposure are mitigated /
reduced.
The MISC Credit Committee (MCC)
regularly reviews the credit risk and
advises on appropriate measures to
improve existing credit control
procedures and practices and the quality
of Trade Accounts Receivables. The
MCC formulates its credit & trading risk
based on the credit & trading operational
guideline issued by the PETRONAS
Group’s Credit & Trading Risk Council
(CTRC). The credit & trading policy and
guidelines has been developed to ensure
all matters relating to credit & trading risk
are being addressed accordingly with
proper guidelines.
Country risk assessments where
required, are made by leveraging on
PETRONAS group resources ie Country
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Risk Council (CRC). Proper assessments would ensure that risk associated with
conducting business in a foreign country is properly assessed and managed.
The Group has financial risk guidelines for managing the Group’s foreign exchange,
interest rate, liquidity, price and counter-party risks. The Group also leverages on
PETRONAS group resources via the Finance Risk Council (FRC) when addressing /
assessing financial risks. The FRC is a forum which proactively discusses, reviews
and monitors finance risk exposure at Group level and makes appropriate
recommendations to companies within the Group. It also fosters coordination of the
Group Finance risk management practices and approaches in accordance with
established policies and guidelines.
MISC benefited from being a part of the PETRONAS Group, which has an established
Risk Management Committee, of which MISC’s Managing Director is a member,
which defines, develops and recommends risk management strategies and policies
for the PETRONAS group. In addition, the Risk Management Committee also
coordinates group-wide risk management in terms of building risk management
awareness and capabilities, monitoring the risk exposures and planning responses to
potential major risk events.
Key Processes
The process of governing the effectiveness and integrity of the system of internal
control is carried throughout the various areas as follows:-
1. The Board Audit Committee operating within its terms of reference and
Management Audit Committee performs an important role in ensuring that
there are effective risk monitoring and compliance procedures to provide the
level of assurance required by the Board.
2. Senior Management sets the tone for an effective control culture in the
organisation through the company’s shared values, developed to focus on the
importance of these four key values:-
• Loyalty
• Integrity
• Professionalism
• Cohesiveness

The importance of the shared values is manifested in the Corporation’s Code of
Conduct for Officers and Staff which is issued to all staff upon joining.
Employees are required to strictly adhere to the Code in performing their duties.
3. The Internal Audit Division, reporting to the Board Audit Committee, performs
scheduled reviews of operations and compliance with company’s policies and
procedures to assess effectiveness of internal controls. The Board Audit Committee
reviews all reports from the Internal Audit Division and conducts annual assessment
on the adequacy of Internal Audit Division’s scope of work and resources.
Prior to submission to the Board Audit Committee, the Internal Audit Division
would submit the findings and recommendations on Internal Controls to the
Management Audit Committee for review, response and implementation of
corrective actions, and updates the Management Audit Committee on the status
of the action taken. The minutes of the Management Audit Committee meetings
are also submitted to the Board Audit Committee.
4. The Ship Management Audit Division, which reports regularly to the
Management and Board Audit Committee, conducts regular audits on the
physical condition and operational health of the Group’s vessels. The audits are
designed to ensure vessels’ integrity and that maintenance is performed to
enhance safety and reliability of vessels at all times. The audit also assesses
crew discipline and competency.
The Ship Management Audit Division would submit the findings and
recommendations on corrective actions of each ship audited to the Fleet
Management Services Division and conduct follow-ups on the status of the
corrective actions. On a quarterly basis, the findings are analysed and compiled
into quarterly reports and submitted to the Management Audit Committee for
review, response and decisions on further actions. The Management Audit
Committee is also updated on the status of the corrective actions.
Management audit committee
in discussion
The organisation is subjected to
periodic management reviews by
our customer’s risk management
entity. The customers are namely;
EXXON MOBIL, British Petroleum
Plc (BP), Chevron Texaco, SHELL
and Broken-Hill Properties (BHP).
In addition, MISC’s vessels are also
subject to stringent audits and
vettings to meet the various
regulatory and commercial
requirements. These include
vettings by oil majors and audits by
the Malaysian Maritime Authority
and ship classification societies to
maintain international safety
management certification under
the relevant Codes.
5. There is a clear Health, Safety &
Environmental (HSE) policy and
framework as well as security
procedures in place with
continuous efforts made to ensure
strict adherence to the specified
standards and practices.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
41

42
Statement On
Internal Control
(continued)
Other Significant Elements of Internal
Control Systems
The Board reviews quarterly reports
from Management on the key operating
performance, legal, environmental
and regulatory matters. Financial
performance is deliberated by the
Management Committee and also
tabled to the Board Audit Committee
and Board on a quarterly basis.
Limits of Authority (LOA) manual
provides a sound framework of
authority and accountability within the
organisation and to facilitate quality and
timely corporate decision making at the
appropriate level in the organisation’s
hierarchy.
The Group performs comprehensive
annual budgeting and forecasting
exercise including development of
business strategies for the next five
years, and establishments of
performance indicators against which
business units and subsidiary
companies can be evaluated. Variances
against budget are analysed and
reported internally on a monthly and
quarterly basis and reported quarterly to
the Board. The Group’s strategic
directions are also reviewed semiannually
taking into account changes in
market conditions and significant
business risks.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
There is a clear procedure for investment appraisal including equity investment or
divestment and capital expenditure. Tender Committees are established to ensure
tender evaluation exercises are conducted in an effective, transparent and fair manner.
Information and Communication and Technology (ICT) is extensively employed in
MISC to automate work processes and to collect key business information. There is
a clear ITC guideline on ICT risk assessment and mitigation. The guideline spells out
the risk management process by identifying the risk exposures, assessing and
analysing the effect of the exposures and deriving a set of measures to manage and
treat the identified risks.
The Business Transformation Team (BTT) is established as a change agent in
ensuring MISC is well equipped with the latest and advanced technology in improving
work and decision making processes. The BTT has also been entrusted to manage
change and organizational restructuring resulting from new systems and process rollout
throughout the Group. Progress of systems implementation is monitored and
reported at the Business Integration Committee to ensure smooth implementation.
The professionalism and competency of staff are enhanced through a properly
planned training, development program and also a stringent recruitment process. A
performance appraisal system of staff is in place, with established targets and
accountability and is reviewed on an annual basis. Action plans are prepared to
ensure that staff obtain the required skills to fulfil their responsibilities and that the
company can meet its future management requirements.
The Board does not regularly review the internal control system of its associated
companies and joint ventures, as the Board does not have any direct control over
their operations. Notwithstanding, the group’s interests are served through
representation on the board of the respective associated companies and receipt and
review of management accounts and inquiries thereon. These representations also
provide the Board with information for timely decision making on the continuity of the
Group’s investments based on the performance of the associated companies.
There were no material losses incurred during the current financial year as a result of
weaknesses of internal control. Management would continue to take measures to
strengthen the Group’s control environment.
This statement is made in accordance with the resolution of the Board of Directors
dated 24 May 2004.

Board Audit Committee
From left:
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff bin Hj. Hussain,
Dato Sri Liang Kim Bang,
Mr. Harry K. Menon, Dato’ Halipah binti Esa
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
43

44
Terms Of Reference
Of Board Audit Committee
1. Constitution
The Board Audit Committee was
established on 28 June 1993.
2. Membership
The Committee shall be appointed
by the Board from amongst its
Directors and shall consist of not
less than three members with the
majority being independent
Directors.
At least one member of the Board
Audit Committee must be a
member of the Malaysian Institute
of Accountants (MIA) or have at
least 3 years working experience
and have passed the examinations
specified in Part 1 of the 1st
Schedule of the Accountants Act
1967 or be a member of one of the
associations of accountants
specified in Part II of the 1st
Schedule of the Accountants Act
1967.
No Alternate Director can be
appointed a member of the Board
Audit Committee. A quorum shall
be two members.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
3. Chairman of Board Audit Committee
The members of the Board Audit Committee shall elect a Chairman from among
their number who shall be an independent Director.
4. Attendance at Meetings
The Managing Director, General Manager Financial Services, General Manager
Internal Audit, General Manager Ship Management Audit and a representative of
the external auditors shall normally attend meetings. However, at least once a
year the Committee shall meet with the external auditors without any executive
Board member present.
The Company Secretary shall be the Secretary of the Committee.
5. Frequency of Meetings
Meetings shall be held not less than three times a year. The external auditors
may request a meeting if they consider that one is necessary.
6. Authority
The Committee is authorised by the Board to investigate any activity within its
terms of reference. It is authorised to seek any information it requires from any
employee and all employees are directed to cooperate with any request made by
the Committee.
The Committee is authorised by the Board to obtain outside legal or other
independent professional advice and to secure the attendance of outsiders with
relevant experience and expertise if it considers this necessary.
7. Duties
The duties of the Committee shall include the following:
• review the following and report to the Board of Directors:a.
with the external auditors, the audit plan;

. with the external auditors, their evaluation of the system of internal
controls;
c. with the external auditors, their audit report;
d. the assistance and cooperation given by the employees of the
Corporation to the external auditors;
e. the adequacy of the scope, functions and resources of the internal
audit functions and that it has the necessary authority to carry out its
work;
f. the internal audit programme, processes, the results of the internal
audits, processes or investigation undertaken and whether or not
appropriate action is taken on the recommendations of the internal
audit function;
g. the quarterly results and year end financial statements, prior to the
approval by the Board of Directors, focusing particularly on:–
i. changes in or implementation of major accounting policy changes;
ii. significant and unusual events; and
iii. compliance with accounting standards and other legal
requirements;
h. any related party transaction and conflict of interest situation that may
arise within the Corporation or Group including any transaction,
procedure or course of conduct that raise questions of management
integrity;
i. any letter of resignation from the external auditors; and
j. whether there is any reason (supported by grounds) to believe that the
Corporation’s external auditors are not suitable for re-appointment; and
• recommend the nomination of a person or persons as external auditors.
8. Reporting Procedures
The Secretary shall circulate the minutes
of meetings of the Committee to all
Members of the Board.
Audit Committee Members
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff
bin Hj. Hussain* (Chairman)
Dato Sri Liang Kim Bang*
Mr. Harry K. Menon*
Dato’ Halipah binti Esa*
Note:
* Independent Non-Executive Directors
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
45

46
The Year In Review
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

47
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

48
“ On behalf of the Board of Directors, I am pleased to present the
Annual Report of Malaysia International Shipping Corporation Berhad
(MISC) for the financial year ended 31 March 2004. ”
PROFIT BEFORE TAXATION
RM Million
2500
2000
1500
1000
500
0
1,417.3
1,415.6
1,728.4
2004
2003
2002
2001
2000 +
1,310.3
2,326.4
+Based on annualised 15 months figures
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The period under review was an exceptionally good year for the shipping business on
the back of a recovering global economy. Despite continuing geopolitical instability
and uncertainties globally, the year saw increased demand for maritime logistics
services, resulting in higher freight rates throughout most of the shipping segments.
Against this backdrop, MISC registered the best ever results in its history by
appropriately positioning itself to capitalise on the stronger freight rates environment
and diligently following through its strategic initiatives in the areas of business
acquisitions, operational efficiency and cost management.
Financial Performance
Operating in a favourable business environment, MISC turned in a record revenue of
RM7,606.3 million, an increase of 40% from RM5,433 million recorded in the previous
year. Group profit before tax surged 77.5% to a record high of RM2,326 million from
RM1,310 million.
The exceptional performance was mainly attributed to better freight rates in most of the
shipping segments and the incorporation of American Eagle Tankers Inc. Ltd. (AET)
financial results into the Group. The inclusion of AET has increased the contribution of
the petroleum shipping business to the Group’s bottomline from 9% to about 28%,
effectively broadening MISC’s earnings base and at the same time reducing the
Company’s reliance on the Liquefied Natural Gas (LNG) shipping business.

Chairman’s Statement
Tan Sri Dato Sri Mohd Hassan bin Marican
The delivery of Puteri Zamrud Satu
in January 2004 increased MISC’s
LNG fleet to 17.
Installation of propeller during
the construction of LNG
tanker, Puteri Nilam Satu.
49

50
Top:
All of MISC’s vessels undergo
periodical auditing to ensure
highest safety standards are
maintained and the continuous
improvement of work processes.
Right:
Duty engineer at the engine room
during maneouvering.
DIVIDENDS
RM Million
600
480
360
240
120
0
372.0
483.6
558.0
2004
2003
2002
2001
2000 +
558.0
558.0
+ Based on annualised 15 months figures
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
MISC continued to focus on serving the energy sector particularly through the LNG,
petroleum, and chemical shipping businesses, and offshore and heavy engineering
businesses which contributed to more than 90% of the Group’s profits. The Company
managed to turn around its Liner business through business rationalization, better
cost management and improved work processes. A lot of effort went into
repositioning the Liner business towards higher yielding long haul segments. The bulk
shipping business also showed a marked improvement in profitability due to record
freight rates and lower operating cost.
Through the implementation of the planned strategies and business acquisitions
concluded during the year, MISC was able to deliver a higher Return on Shareholders’
Funds of 20.2% compared to 13.6% previously. The financing of the Group’s
business expansion strategy resulted in a higher Debt to Equity ratio of 0.82 times,
but still well below the average for the shipping industry. Earnings per share increased
to 123.1 sen from 70.5 sen previously while Net Tangible Assets per share rose to
557.9 sen from 496.6 sen before.
Dividend
An interim dividend of 15 sen per share, tax exempt, was declared and paid in
December 2003. The Board is recommending a final dividend of 15 sen per share, tax
exempt, plus a special dividend of 10 sen per share, tax exempt, bringing the total
dividend for the financial year to 40 sen per share, the highest dividend payout in
MISC’s history. The dividend amount, coupled with the increasing payout over the
past five years stand as a testimony to the Company’s unwavering commitment to
distribute value to its shareholders.

Floating out of Aframax tanker,
Bunga Kelana 7 during construction.
MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD
51

52
Right:
Eagle Virginia, one of AET’s two
VLCC tankers.
Left:
LNG discharging operations at
Kaohsiung Port, Taiwan.
Corporate Development
Holding firm to its vision to be the
preferred provider of world class
maritime transportation and logistics
services, especially in the energy
transportation sector, MISC continued
to grow its LNG shipping business with
the deliveries of Puteri Nilam Satu and
Puteri Zamrud Satu during the year
resulting in a 17-strong LNG fleet. The
two vessels have been employed to
service long term contracts with MLNG
Tiga Sdn Bhd. MISC also exercised the
options for the construction of two new
LNG tankers, bringing the number of
LNG tankers under construction to six.
RETURN ON SHAREHOLDERS’ FUNDS
Percent
28.0
22.4
16.8
11.2
5.6
0
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
21.0
21.6
15.2
2004
2003
2002
2001
2000 +
13.6
20.2
+ Based on annualised 15 months figures
Additionally, Tenaga Empat completed its Life Extension Programme, which extended
its life by another 20 years. MISC was also successful in securing the second third
party LNG contract with J&S Cheniere. With the contract, MISC has two LNG tankers
operating in the Mediterranean/Atlantic area, enhancing its presence in the region.
MISC concluded the acquisition of AET from Neptune Orient Lines in July 2003,
effectively transforming the Company into the second largest owner of Aframax
petroleum tankers in the world. It also provided MISC the critical mass and the
strategic positioning to serve its global customers with geographical coverage in both
the Atlantic Basin and the Arabian Gulf-Far East sector.
During the year, MISC commenced its offshore business with the chartering of a
Floating Storage and Offloading (FSO) facility to Murphy Sarawak Oil Company Ltd.
MISC also successfully completed the conversion of MT Bunga Kertas into its first
Floating Production, Storage and Offloading (FPSO) facility, which was subsequently
delivered to PETRONAS on a long-term charter. The conversion was performed at
Malaysia Shipyard and Engineering Sdn Bhd (MSE). MISC increased its shareholding
in MSE Holdings Sdn Bhd, the holding company of MSE, to 65% in March 2004.
MISC will position MSE to spearhead its heavy engineering business concentrating
on the energy sector.
In April and May 2004, taking advantage of the increase in the second hand value of
bulk vessels, MISC disposed fifteen bulk vessels in line with the rationalisation of its
bulk shipping business.
Future Outlook
The global economic recovery driven by higher consumption is expected to continue
to be sustained at least in the near term, affirming the optimism that freight rates will
continue to remain firm in the current year. We at MISC however continue to remain
vigilant and cautious as we continuously monitor the global economic and geopolitical
environment, regulatory developments and the positioning of our global
competitors.

Bunga Kertas - MISC’s first Floating
Production, Storage & Offloading
(FPSO) facility.
MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD
53

54
Left:
MISC’s prime
movers crossing
Penang Bridge.
Right:
Loading operations
at La Spezia Port,
Cagliary, Italy.
MISC will continue to capitalise on the
projected growth in the LNG trade by
growing its LNG fleet beyond its current
17 vessels and the additional six vessels
already contracted to support additional
business from both PETRONAS and
third party customers. MISC will also
benefit from the broader income base
resulting from the inclusion of AET, which
will increase the contribution from the
petroleum shipping business.
The consolidation of MSE and the
introduction of offshore business will
strengthen and grow MISC’s income
contribution from the targeted energy
sector. Through the repositioning of
MSE, increased participation of the
offshore business, and the positioning of
MISC Integrated Logistics Services
(MILS) as a world class third party
logistics provider to the energy and
consumer product group sectors, MISC
will be able to reap greater synergistic
value within the Group and the
PETRONAS Group as a whole.
MISC will focus its Liner business on the
long haul service where new investments
will be required, rationalize its difficult
Intra-Asia segment, and identify the
older and less efficient vessels to be
disposed. For the bulk shipping
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
business, the attractiveness of the second hand value of bulk vessels provides further
opportunity for MISC to consider divesting more of its older vessels.
In summary, MISC will continue to focus on growing the high yielding energy
transportation segment and retaining its leadership position in the LNG and petroleum
shipping businesses. Efforts are being made to improve our capabilities and
competencies to ensure the realization of our vision to become the preferred
provider of world class maritime transportation and logistics services.
Appreciation
On behalf of the Board of Directors, I would like to place on record our heartfelt
condolences to the wife and family members of Allahyarham Dato’ Haji Mohd Ali bin
Haji Yasin for the loss of a great man who has been instrumental in steering MISC into
what it is today. Indeed, Allahyarham Dato’ Haji Mohd Ali’s selfless dedication,
commitment, vision and leadership over the past seven years at the helm of MISC has
transformed the Company into a truly global Malaysian company and the fourth
largest on the Bursa Malaysia in terms of market capitalisation. His passing is truly a
great loss to MISC and we will continue his work to transform MISC into the preferred
global energy-based logistics service provider.
Finally, I would like to express my gratitude to the Board of Directors, Management
and staff of MISC for their dedication, commitment and loyalty to the Company. I
would also like to thank the Government of Malaysia, our clients, business associates
and bankers for their continued support and assistance, and to our shareholders who
have remained committed to MISC.
TAN SRI DATO SRI MOHD HASSAN BIN MARICAN
Chairman
24 May 2004
Kuala Lumpur

The consolidation of MSE and the
introduction of the offshore business
will strengthen and grow MISC’s
income contribution from the
targeted energy sector.
MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD
55

56
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

“
committed to providing
world-class
customer service,
strong building a &
loyal customer base
& strengthening relationships
”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
57

58
“ The financial year ended 31 March 2004 was a record year for
the shipping industry after experiencing a difficult period in
FY2002/2003. FY2003/2004 saw freight rates recovering across the
board with some of them at historical highs. Despite heightened
security concerns with the war in Iraq, the continued tensions in the
Middle East and the SARS outbreak, the world economy started to
show signs of recovery especially in the United States and Japan. Even
the Euro zone, though fragile, managed to show positive growth. ”
The global economic recovery raised
demand for oil towards the later part of
2003 (Autumn/Winter season), which
moved freight rates for petroleum
tankers higher. Besides the growth in
LNG demand from the Asia Pacific
region, we also witnessed strong
demand in the Atlantic area, especially
in the USA and Spain, driven mainly by
demand in the power sector. The
chemical shipping business despite
firmer demand only saw a slight
increase in freight rates due to an
overhang in capacity. The economic
recovery also strengthened global
trade, which contributed to the surge in
container shipping demand and higher
freight rates. Higher bulk shipping
demand, driven mainly by China,
coupled with tight bulk shipping
capacity and port congestion, resulted
in a “dry bulk boom” with a sharp
upturn in bulk freight rates throughout
the year.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
During the year, we positioned ourselves to ride the wave of freight rate recovery,
strengthened our marketing capabilities and continued to improve our operational
efficiencies and cost competitiveness. As a result, our previously loss-making liner,
bulk and chemical shipping business segments achieved a turnaround in their
performance. In line with our focus on the energy sector, we completed the
acquisition of American Eagle Tankers Inc. Ltd. (AET) in July 2003. MISC benefited
from the timing of the acquisition which coincided with the upswing of the shipping
market and managed to realize the value of AET as shown in this year’s results. Going
forward, MISC expects higher contribution from the enlarged petroleum shipping
business through wider market coverage, cost and operational synergies, and a larger
asset pool.
GROUP PROFIT FROM OPERATIONS
2003/2004 2002/2003
RM Million RM Million
Shipping 2,466.4 1,711.0
Integrated Liner Logistics 47.8 (271.7)
Non-Shipping (4.8) 0.2
Profit from operations 2,509.4 1,439.5
Finance cost (210.5) (169.6)
Share of Results of Associated Companies 27.5 40.4
Profit before taxation 2,326.4 1,310.3

Operations Review
Financial Year 2003/2004
MISC funnel, a significant feature
onboard MISC’s vessels.
59

60
Lake Charles
Cove Point
Top:
The height of a typical 137,000 cbm
MISC LNG cargo tank is equivalent
to a standard 10-storey building.
Right:
Loading operations at MLNG Terminal,
Bintulu.
Global LNG trade, driven mainly by
increasing gas demand and declining
domestic natural gas resources in gas
consuming countries in East Asia,
Europe and North America, expanded
by 10% in 2003 to 123 million metric
tonnes. Though LNG demand in the
traditional Asian markets (Japan, Korea
and Taiwan) grew by 9% in 2003,
demand growth in the Atlantic market,
especially in the USA and Spain, was
much stronger. The USA recorded a
129% increase in LNG imports from
4.8 million metric tonnes to nearly
11.0 million metric tonnes in 2003.
During the year, MISC received and
delivered two more Puteri Satu vessels,
namely Puteri Nilam Satu in September
2003 and Puteri Zamrud Satu in
January 2004, to MLNG Tiga Sdn Bhd
to start their 20-year time charters.
MISC also signed shipbuilding
contracts for two new 145,000 cubic
metres LNG tankers with Samsung
MISC’S LNG SHIPPING ROUTES
Europe
Turkey
South Korea Japan
Algeria to
Europe and USA
Oman
Taiwan
Nigeria to
Europe and USA
Malaysia
MISC Existing Routes
Australia
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
LIQUEFIED NATURAL GAS (LNG) SHIPPING BUSINESS
Heavy Industries (SHI) in July 2003 upon PETRONAS’ confirmation of their
requirement. To support PETRONAS’ LNG trading company, ASEAN LNG Trading
Company (ALTCO) which allows PETRONAS to penetrate new LNG markets and
access new LNG supply sources, MISC negotiated and inchartered three LNG
tankers for time charter of six to eight months to ALTCO.
In FY2003/2004, MISC also made several charter proposals to various potential
charterers in the Atlantic region. In the process, we were successful to charter Tenaga
Empat to J&S Cheniere, a London based oil and gas trading company (affiliated to
Cheniere Energy of the USA) on a 20-month time charter. In February 2004, we
delivered Tenaga Empat to the charterer in Algeria after having undergone life
extension refurbishment works. Since then, she has made deliveries from Bethioua,
Algeria to Marmara, Turkey and Cove Point, USA.
Arising from the high activity in the Atlantic market, the refurbished Tenaga Satu,
which was on time charter to Gaz de France, was fully utilized delivering cargoes from
Algeria and Nigeria to South Korea, France and USA. Tenaga Dua also delivered one
MLNG Tiga cargo from Bintulu to Lake Charles, USA, the longest haul laden voyage
ever performed by a Tenaga vessel, made possible by its recent refurbishment works.
On its return voyage, the vessel back-hauled a cargo from Oman to Japan. These new
developments further strengthened our capabilities and broadened our service
coverage in line with our strategy of becoming a truly global LNG shipping service
provider.
Last year, MISC safely completed 316 deliveries of around 16 million metric tonnes of
LNG cargoes through its fleet of 17 LNG tankers. MISC marked another milestone
last year when Puteri Firus, Puteri Intan and Puteri Nilam Satu delivered cargoes from
Karratha, West Australia and Lumut, Brunei to South Korea. It was the first time the
three vessels loaded cargoes from a terminal outside of Bintulu further strengthening
our capabilities of plying outside traditional boundaries.
In response to the additional LNG transportation demand indicated by PETRONAS
and other customers, MISC exercised the option for two additional sister vessels with
SHI in January 2004. With this exercised option, MISC has six new LNG tankers on
order to support the growth strategy for our LNG shipping business. Going forward,
MISC will continue to be active in the global shipping market looking for opportunities
to further enhance our market position and expand our customer base.

GLOBAL LNG FLEET
as at 30 June 2004
MISC - 10% (17)
Shell - 8% (13)
MOL - 8% (13)
Golar LNG - 6% (10)
BGT - 5% (9)
NYK - 5% (8)
ADNOC - 5% (8)
Pronav - 5% (8)
Hyundai - 4% (6)
SNTM-Hyproc - 4% (6)
Others - 40% (68)
Total - 166
Puteri Nilam Satu joined MISC’s fleet as
its 16th LNG vessel in September 2003.
Japan- 47.9%
South Korea- 14.4%
Spain - 9.5%
USA -8.4%
France - 7.0%
Taiwan - 4.5%
Turkey - 2.8%
MAJOR LNG IMPORTERS & EXPORTERS
as at 30 June 2004
Italy - 2.4%
Belgium - 2.1%
Puerto Rico - 0.4%
Greece - 0.3%
Portugal - 0.2%
Dominican Rep. - 0.2%
Indonesia- 21.3%
Algeria- 17.3%
Malaysia - 14.2%
Qatar -11.4%
Trinidad - 7.1%
Nigeria - 6.6%
Importers Exporters
Australia - 6.3%
Brunei - 5.8%
Abu Dhabi - 4.3%
Oman - 4.3%
USA - 1.0%
Libya - 0.5%
61

62
Right:
Lightering operations onboard Aframax
tanker Eagle Charlotte.
Bottom:
The strategic acquisition of AET propelled
MISC as the second largest Aframax
tanker operator in the world with
39 Aframax vessels.
PETROLEUM SHIPPING BUSINESS
The first half of the year was relatively
weak for the petroleum tanker market
due to slower demand for oil. However,
the sluggish market made a spectacular
comeback with strong freight rates
recorded from November 2003 to the
end of the financial year. The strong
tanker demand was evident on the back
of increased global oil demand driven by
the stronger global economic growth
and the onset of Autumn/Winter
seasonal demand.
On 22 July 2003, MISC concluded the
acquisition of AET from Neptune Orient
Line. The strategic acquisition of AET
increased MISC’s Aframax fleet by 29
vessels, propelling MISC to become the
second largest Aframax tanker operator
in the world with 39 Aframax vessels.
The larger fleet provides MISC with the
critical mass it requires to better serve its
customers globally. With the AET
acquisition, MISC also owns three Very
Large Crude Carriers (VLCCs), after it
took delivery of Bunga Kasturi to service
a ten-year time charter with PETRONAS
in April 2003.
On the commercial side, FY2003/2004
was a busy period for our petroleum
shipping business. We successfully
renewed time charter contracts for two
of our clean petroleum product carriers,
a contract of affreightment (COA) with
ExxonMobil for one Aframax vessel, and
one time charter contract with
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
PETRONAS. Further, we secured a one year COA with PETRONAS Trading
Corporation (PETCO) to transport fuel oil from Europe to the Far East via a charteredin
VLCC. In October 2003, MISC formed a joint venture company, MISC Nigeria
Limited, to explore petroleum shipping business opportunities in Nigeria. Initiatives to
operationalise Bakkah Shipping Company commenced in February 2004 to develop
and realize tanker business opportunities among members of the Organization of
Islamic Countries.
In FY2003/2004 through AET, we signed a COA with Bitumenes Orinoco (BITOR) to
transport orimulsion from Venezuela for distribution to Asia. We also entered into a
new lightering COA with ATMI (US subsidiary of Total), and entered into a new voyage
COA with FINAVAL to ship orimulsion from Venezuela to Italy.
Moving ahead, MISC plans to grow its petroleum fleet further in line with its focus on
the energy transportation sector. Currently, MISC has two new Aframax vessels and
six new VLCCs on order. With its plans to grow further its global petroleum fleet,
develop strategic joint ventures and alliances, and explore new business
opportunities in selected markets like Europe, USA, India, Africa and China, MISC is
moving closer to become the leading global energy transporter.
TANKERS SPOT RATES
AG-EAST (FY 2003/04)
Worldscale
250
210
170
130
90
0
214
85
207
70
153
126
Q4
Q3
Q2
Q1
Aframax
VLCC
215
126
Source: Clarkson Research Studies

Bunga Kelana 8 - the second of
a series of four 105,000 dwt
Aframax tankers ordered by MISC.
MISC PETROLEUM TANKERS
VOLUME OF CRUDE OIL LIFTED
(FY 2003/04)
Domestic vs Foreign
Domestic - 64%
Foreign - 36%
Quantity: 13.5 million metric tonnes
63

64 Right:
Bunga Melati Dua, a 32,189 dwt
chemical tanker at Port Kelang.
MISC CHEMICAL TANKERS
CARGO QUANTITY LIFTED FOR FY 2003/04
Vegetable oil vs Chemicals
in metric tonnes
Chemicals - 51%
Vegetable Oil - 49%
Total Cargo Lifted: 2.873 million metric tonnes
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Bottom:
Loading operations onboard an
MISC chemical tanker.
CHEMICAL SHIPPING BUSINESS
In FY2003/2004, the demand for chemical shipping was strong driven mainly by
China’s growth. However, this resulted in only marginally higher freight rates due to
excess capacity in the market. We continued to see a shift in supply centers for
petrochemical products from Europe to the Middle East/Arabian Gulf, which
adversely affected our Far East–Europe chemical shipping service.
To overcome the challenges in the market, marketing efforts were stepped up which
has shown results. During the year, we secured COAs with Vinmar International,
IOI Edible Oils, Degussa AG, Iffcochart, Reliance Industries and Kaukomarkkinat.
In addition, MISC secured time charter contracts for two chemical tankers with
Kuok Oil. With the marginally stronger freight rate environment coupled with business
growth, more efficient scheduling and selective increase of term to spot business, the
chemical tanker business returned to profitability.
For the coming year, against the backdrop of a better global economic outlook and
slower increase in capacity, we are confident that freight rates will at least maintain at
current levels. As such, strategies have been put in place to exploit the positive
market environment. We are also studying the opportunity to increase our capacity in
order to gain market share in the chemical/vegetable oil market.

Bunga Mawar, a 29,974 dwt
chemical tanker.
65

66
Top:
Bunga Kertas undergoing conversion into
an FPSO facility at MSE Shipyard,
Pasir Gudang, Johor.
Right:
MISC’s FPSO project team in discussion.
Offshore Business
In April 2003, MISC commenced its
offshore business with the chartering of
a Floating Storage and Offloading (FSO)
facility to Murphy Sarawak Oil Company
Ltd. Later in the year, MISC marked
another milestone with the delivery of
our first Floating Production, Storage
and Offloading (FPSO) facility in March
2004. MT Bunga Kertas was one of our
older petroleum tankers, which was
converted into an FPSO facility by
Malaysia Shipyard and Engineering Sdn
Bhd (MSE) last year. With its
completion, FPSO Bunga Kertas was
delivered and deployed in Malaysian
waters to begin serving a fifteen-year
charter with PETRONAS.
The offshore business provides MISC the
opportunity to utilize our older petroleum
tankers, which could be converted into
FPSO/FSO facilities, thereby extending
their useful life. It also offers synergistic
opportunity within the Group as most of
the engineering and conversion work
could be performed by MSE. MISC is
currently studying opportunities to
enhance our presence in the Asian
FPSO/FSO market by offering floating oil
and gas terminal solutions for deepwater
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
OFFSHORE AND HEAVY ENGINEERING
field development. We have identified several feasible FPSO/FSO projects in the region,
which we target to capture a portion.
To support this business development initiative, MISC will focus on strengthening the
required technical and commercial capabilities. We have identified a leading global
FPSO/FSO player to be our partner in our future business endeavours. With the
relevant critical experience and capabilities in place, MISC aims to be a major player
in the Asian FPSO/FSO market within the next five years.
Heavy Engineering Business
In March 2004, MISC completed the acquisition of an additional 22% of MSE
Holdings Sdn Bhd (MSEH), the holding company of MSE, making MSEH a 65%
subsidiary of MISC. This is part of MISC’s strategy to strengthen and grow its heavy
engineering business as well as realize the synergistic opportunities within MISC and
the PETRONAS Group as a whole.
During the year, MSE successfully delivered 13 oil and gas engineering projects and
repaired 105 ships valued at over RM680 million. MSE also delivered two major
FPSO/FSO conversion projects with a combined value of around RM240 million. The
delivery of the conversion projects marked the success of pooling resources and
expertise from MSE’s ship repair, shipbuilding and engineering divisions to undertake
more sophisticated projects.
The main focus for MSE in the next financial year will be on enhancing its competitive
edge through higher productivity and technical capabilities. MSE plans to undertake
high value-added repair activities such as LNG carrier repairs and dry-docking and
build up its project management capabilities for FPSO/FSO conversion especially for
larger and more sophisticated deepwater projects. MISC will reposition MSE as its
heavy engineering arm focused on supporting both upstream oil and gas projects and
downstream repair and maintenance projects in addition to traditional businesses of
ship repairing, conversions and ship maintenance.

The completed FPSO Bunga Kertas is
currently deployed in Malaysian
waters to serve a long term charter
with PETRONAS
67

68 Right:
Bunga Raya Dua, a 3,500 TEU container
vessel at Jeddah Port, Saudi Arabia.
Bottom:
Warehousing - part of MISC’s integrated
logistics services aim at providing total
logistics solutions for its customers.
INTEGRATED LINER LOGISTICS BUSINESS
MISC’s Integrated Liner Logistics
business is positioned to provide total
logistics services leveraging on supply
chain management tools to meet its
customers’ total logistics requirements.
Liner Logistics
The Liner business experienced a
turnaround in FY2003/2004 with the
strengthening of global trade. Demand
for container shipping grew by 10.4%
compared to capacity growth of 7.3%
the previous year. The higher container
shipping demand enabled shipping
lines to implement rate restoration
MISC LADEN THRU-PUT (IMPORT/EXPORTS)
FOR MALAYSIA IN FY 03/04
TEUS
64,000
51,200
38,400
25,600
12,800
0
32,690
60,443
P.KLANG
6,939
14,304
PENANG
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
817
8,732
KUANTAN
Imports - 82,555
Exports - 110,682
2,080
12,405
19,689
P.GUDANG
7,810
SABAH
20,340
6,988
SARAWAK
programmes that were positive to their bottom lines. Although the Liner market
improved significantly in 2003, shipping lines had to grapple with increasing operating
costs including higher costs of fuel, marine insurance and charter hire. These posed
major challenges to the shipping lines, which had to focus on maximizing cargo yield
and minimizing operational costs.
During the year, rate restoration programmes were implemented for the Far East-
Europe services and Australasia services. With these increased freight rates, coupled
with increases in container liftings and improved cost competitiveness, Liner Logistics
succeeded in lifting its results into positive territory for these two trade services in
FY2003/2004. MISC also continued to rationalize and optimize its Intra-Asia services.
Despite these initiatives, the intensely competitive Intra-Asia market continued to be
a difficult market for MISC in 2003. In the domestic market, the Perdana service was
also restructured but this service continued to record deficits in FY2003/2004 under
a highly competitive environment characterized by many small operators. However,
with the improving Malaysian economy, this Perdana service is expected to turn in
better results in the coming year.
TRUNK FREIGHT RATES
USD per teu
1000
800
600
400
200
0
932
667
332
QTR 1
996
Europe
Australasia
Asia
645
341
QTR 2
987
696
377
QTR 3
859
739
431
QTR 4
In line with its strategy to focus on the
profitable long haul services against the
backdrop of an improving global container
shipping market, MISC signed
shipbuilding contracts for two new post
panamax 7,900 TEU vessels. The vessels
will be delivered in FY2006/2007 and will
be injected into the Far East-Europe
service. The strategy to focus on long haul
services has also prompted MISC to

Bunga Teratai Empat, a 1,550 TEU
container vessel departing Durban
for Cape Town, South Africa.
69

70
The warehousing and freight forwarding
facilities of MTW have been integrated
with the distribution capabilities of MHS
to offer clients customised logistics
service business solutions.
INTEGRATED LINER LOGISTICS BUSINESS (CONTINUED)
review its asset portfolio mix for the
Liner business. Some of the smaller and
older liner vessels, which no longer fit
into our long haul business strategy, will
be disposed.
With the improved service offering,
better cost management and favourable
freight environment, MISC expects
earnings for the Liner business in
FY2004/2005 to remain positive.
MISC LADEN CONTAINER LIFTINGS
Teus
80,000
64,000
48,000
32,000
16,000
0
61,097
48,525
33,606
QTR 1
66,761
Europe
Australasia
Asia
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
52,940
30,639
QTR 2
65,745
48,603
26,772
QTR 3
71,262
49,668
26,907
QTR 4
MISC Integrated Logistics Services (MILS)
The logistics market in Malaysia continues to be competitive with the entrance of new
logistics players especially in the container haulage business. During the year, MILS
implemented strategies to build its capabilities to be a world-class third party logistics
provider, improved operational efficiencies and carried out cost saving initiatives with
the help of the recently implemented Land Logistics computer system.
In August 2003, MILS expanded its service offerings to include conventional and
specialized transportation services, which are expected to contribute significantly to
the overall future performance of MILS. In the same month, MILS also expanded its
operations into Sarawak, offering haulage services. Towards the end of
FY2003/2004, MISC started its cross-border land logistics business transporting
goods from Malaysia and Singapore to Thailand.
Through MILS’ marketing efforts and extended service offerings, we succeeded in
adding Yamaha Electronics Manufacturing, PETRONAS Dagangan, Samsung Group
of Companies, British American Tobacco, Tenaga Nasional, Flextronics Industries,
UMW Industries and Sime Tyres to our list of clientele in FY2003/2004.
Looking towards the future, the landscape for integrated logistics business will
become more challenging and competitive, as trade liberalisation will continue to
attract both local and foreign players who have integrated logistics capabilities. In the
light of this competitive environment, MILS will continue to remodel its logistics
business through the optimization and rationalization of initiatives, and pursue
partnership/alliances with world-class consulting houses and industry experts to
build capabilities within MISC to be a world-class third party logistics service provider.

MISC Integrated Logistics Services
(MILS) brings to customers the best
customised logistics solutions.
MISC Integrated Logistics Services (MILS)
Haulage Consolidation
Centre
Suppliers Customers
Customs
Clearance
AIRFREIGHT
SEAFREIGHT
MISA
A B C D E
F
Customs
Clearance
A - Inland Transportation from plant to cargo
Consolidation Centre and later to the port
B - Custom Clearance
C - Sea / Air Shipment
D - Custom Clearance
E - Inland Transportation from port to
Distribution Centre & later to customer
F - Insurance
Distribution
Centre
Distribution
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
71

72
DRY BULK CARRIERS
1 - YEAR TIME CHARTER RATES
USD/day
50,000
40,000
30,000
20,000
10,000
0
Q1 - 02 / 03
Q2 - 02 / 03
Panamax
Handymax
Handysize
Q3 - 02 / 03
Q4 - 02 / 03
Q1 - 03/ 04
Q2 - 03 / 04
Q3 - 03 / 04
Q4- 03/ 04
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Top:
Bunga Saga 10, a 73,127 dwt Panamax
bulk carrier at high seas.
Right:
Coal - the major cargo carried by MISC’s
dry bulk fleet.
BULK SHIPPING BUSINESS
Financial year 2003/2004 was an exceptional year for the bulk shipping business as
a series of unexpected spikes in the bulk freight rates was witnessed. Freight rates
remained strong at very high levels, doubling in the second half compared to the first
half of the year. The strong upward movements of the freight rates were driven mainly
by strong demand for bulk shipping in China, lower supply growth of bulk shipping
capacity in the market and port congestion in major bulk ports in Australia, Brazil and
China.
During the year, MISC successfully concluded several bulk business contracts. In
September 2003, MISC signed a Memorandum of Understanding with Crescent
Shipping to jointly explore potential business opportunities in India. The COA of MV
Pernas Amang with Tenaga Nasional Berhad was extended for another three years
commencing September 2003. In addition, MISC was awarded a three-year COA by
Tenaga Nasional Berhad to carry 1 million tonnes of coal to Janamanjung power
station commencing 1 January 2004.
In line with our focus on the energy transportation sector and to capitalise on the
strength of prices of second-hand bulk ships, we identified 15 carriers which were
subsequently disposed in April and May 2004. Going forward, the outlook for bulk
shipping business remains favourable. Though freight rates have declined from the
historical highs seen in early 2004, they are expected to remain higher for the rest of
2004 than the lows that we saw in 2002. The continued positive market environment
for bulk shipping business provides us with the opportunity to further rationalize the
business.

Discharging operations onboard
Bunga Saga 9 at Lekir Bulk Terminal,
Lumut, Perak.
MISC BULK CARRIERS AGE PROFILE
as at 31 March 2004
0-10 Years - 55%
11-20 Years - 37%
20+ Years - 9%
TYPE OF CARGO
CARRIED BY MISC BULK CARRIERS
IN FY 2003 / 2004
Coal - 37%
Ferrous Ore - 13%
Fertilizer - 8%
Grain - 14%
Mineral - 12%
Scrap - 2%
Steel Product - 6%
Sugar - 3%
Timber - 3%
Steel Product - 2%
Total cargo carried for the year : 14.9 million tonnes
73

74
MISC’s main focus will be on
building capabilities and leaders
within the organisation to support
MISC’s global growth strategy.
MISC STAFF STRENGTH
as at 31 April 2004
Shore Staff (Executive)
- 1506
Shore Staff (Non-Executive)
- 2834
Sea Staff (Officers)
- 2465
Sea Staff (Ratings)
- 2732
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
HUMAN RESOURCE MANAGEMENT (HRM) SERVICES
During the financial year, MISC focused on developing, strengthening and optimizing
the human resource (HR) infrastructures and capabilities as we believe that
investment in human capital has direct impact on our value creation strategy. Various
HR initiatives were successfully implemented particularly the integrated skill and
competency development programmes with a balanced mix of technical, business
and people skills to produce a pool of quality and effective workforce.
To ensure that MISC has a continuous pool of Malaysian officers, we sponsored 258
Malaysians to pursue the cadetship and rating programmes in ALAM. This number is
likely to increase in line with MISC’s growth strategy. MISC also organized training
programmes to address softer issues such as personal wellness and teambuilding.
These programmes assisted in fostering a spirit of cohesiveness among employees
and created a level of awareness for healthy living.
In the past year, MISC’s workforce was enlarged with the acquisition of AET and MSE.
This added challenges to the HR function whereby we had to streamline and realign
policies and procedures as well as provide change management support to address
post acquisition workforce issues. During the financial year, MISC completed its
manpower rationalization exercise for executive employees where about 5% or 56
executive employees accepted the Separation Package (SP). The SP was offered to
the executive employees as part of the Group’s Business Transformation and
restructuring exercise, which was aimed to enhance operational efficiency and cost
competitiveness.
For the coming year, we will focus on building capabilities and leaders within the
organization to support our global growth strategy. The emphasis will be on
enhancing capabilities and competencies in the areas of market intelligence, alliance
management, ship management and leadership development.

MISC SEA STAFF
as at 31 April 2004
Sea Staff (Officer)
Malaysian - 1236
Sea Staff (Officer)
Non - Malaysian - 1229
Sea Staff (Ratings)
Malaysian - 1802
Sea Staff (Ratings)
Non - Malaysian - 930
75

76
Top:
Every year, MISC sponsors about 200 school leavers
under its cadet sponsorship programme.
Right:
Akademi Laut Malaysia – dedicated to produce
highly qualified graduates in the maritime industry.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
MARINE EDUCATION AND TRAINING
Akademi Laut Malaysia (ALAM) will continue to play a pivotal role in supporting the
Government’s call to be a maritime nation. During the year, in order to attract
potential cadets, ALAM conducted roadshows, career talks and exhibitions at various
schools around Malaysia, resulting in the receipt of 23,000 applications for its Cadet
and Rating programmes. To enhance the effectiveness of ALAM’s training
programmes, MISC presented MV Pernas Propane to ALAM to be used as a training
vessel in May 2003.
ALAM also conducted relevant training programmes (Offshore and Ports) for related
maritime industries such as the Royal Malaysian Customs, Marine Police, Institut
Perikanan Malaysia, Port of Tanjung Pelepas, Penang Port and Kuantan Port. ALAM
also succeeded in securing customers from Brunei and Singapore in line with its plan
to expand into the ASEAN region.
For the coming year, ALAM will focus on strengthening and expanding its course
offerings to cover the whole spectrum of the maritime sector. The number of courses
offered will be increased and special emphasis will be made to ensure the seafarers
produced by ALAM are competent and qualified in accordance with the high
standards set by the maritime society.

78
Top:
Monitoring discharging operations onboard.
Right:
Chemical tankers Bunga Semarak (right) and
Bunga Mawar (left) undergoing repair works
at MSE Shipyard, Pasir Gudang, Johor.
FLEET MANAGEMENT SERVICES
With the buoyant shipping market in
FY2003/2004, we were challenged to
ensure optimal commercial availability
of our vessels without compromising
on their operational efficiency. The
enlarged MISC fleet with the acquisition
of AET and the deliveries of new vessels
in FY2003/2004 added complexity to
the way we managed our assets, but we
were successfully guided by our
strategic theme of “Continuous Cost
Competitiveness and Sustained
Asset Reliability”.
In line with our aim of being a cost
competitive operator, we moved most
of the dry-docking of our bulk vessels to
the People’s Republic of China, where
the cost for steel renewal, blasting and
cargo hold repairs were more attractive.
In the areas of procurement, MISC’s
strategy to perform planned periodic
bulk purchases of store supplies
resulted in realizing higher volume
discounts and lower processing costs.
Other cost reduction initiatives
implemented during the year included
continuous in-depth studies of vessels’
operational efficiency, and optimization
of operational manning level and vendor
management system.
To ensure MISC’s asset reliability, we
are in the process of implementing the
computerised Integrated Asset
Management System (AMOS) for
Planned Preventive and Predictive
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Maintenance on MISC vessels. With the planned completion of AMOS
implementation in the coming year, MISC will be able to better manage its vessels,
increase vessel availability and reduce downtime. During the year, we also embarked
on a safety campaign towards achieving Zero Accident and Incident to inculcate a
safety culture amongst MISC ship personnel.
With improved control in managing our assets through AMOS and better safety
awareness among MISC seafarers, we embarked on programmes to ensure that all
our vessels conform to ship security requirements in response to increased threats of
terrorism and piracy. MISC commenced International Ship and Port Facility Security
Code (ISPS) certification in January 2004 and completed the exercise in May 2004,
ahead of the 1 July 2004 deadline. MISC is proud to be the first company in Malaysia
to be awarded with the International Ship Security Certificate on 19 January 2004.
For the coming year, MISC will ensure that competent and experienced personnel are
employed to serve both onboard the vessels and onshore. With that in mind, MISC
will implement the revised Shipboard Management System, utilize AMOS and adopt
“best industry practices” wherever practicable. Through these initiatives, MISC is
confident that the condition and performance of all MISC vessels will be at optimal
operating standards at all times to meet MISC’s customer requirements.
CONTRACTED VESSELS
DELIVERY SCHEDULE
5
4
3
2
1
0
2
1
1
2004
2
AFRAMAX
LNG
VLCC
CONTAINER
3
2005
2
1
1
1
1
1
2006
2007

MISC’s vessels are constantly
inspected to ensure their condition
and performance are at optimal
operating standards.
LIST OF VESSELS BY TYPE / CATEGORY
as at 30 June 2004
in dwt
LNG Tankers - 1,005,074
Petroleum Tankers - 4,585,720
Chemical Tankers - 395,545
Total : 8,128,427
Containerships - 537,009
Bulk Carriers - 1,605,079
NUMBER OF VESSELS BY TYPE / CATEGORY
as at 30 June 2004
LNG Tankers - 17
Petroleum Tankers - 46
Chemical Tankers - 15
Total : 138
Containerships - 24
Bulk Carriers - 36
79

80
Top:
Excellent customer service is one of the key
drivers of MISC’s business transformation.
Right:
Training on the new IT systems is crucial in
ensuring their successful implementation.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
BUSINESS TRANSFORMATION
The current Information Technology (IT) phase of our business transformation project
is now at its final leg with target completion in FY2004/2005. Each of the four IT
systems implemented will assist MISC’s key business units to be more customer
focused and enhance operational efficiencies through the right business processes
and controls.
The Non-Liner system went live successfully in October 2003. The Non-Liner System
that was rolled out for the petroleum, chemical, bulk and LNG shipping businesses
will assist the various business units in planning better fleet utilization while focusing
on customer service through better chartering and operational efficiencies.
Phase 2A of the Liner System went live in September 2003. The Liner and Land
Logistics systems will substantially change the way we operate and manage our
Integrated Liner Logistics business, making us more customer focused and
operationally efficient. Full completion of the Liner system (Phase 2B) is targeted
before the end of 2004. The end-to-end integrated logistics business supported by
the underlying Liner and Land Logistics systems will enable MISC to offer Total
Supply Chain Management Services to its customers.
The AMOS System, comprising three modules was launched in November 2003. In
FY2003/2004, we installed the system on board 51 vessels and we are in the process
of rolling out the system to the remaining vessels. The AMOS System will facilitate
total lifecycle maintenance of the vessels from preventive and predictive maintenance
onboard to dry-docking of the vessels.
With the completion of the IT projects, MISC will be better positioned in the global
marketplace to capitalize on the opportunities presented to create value for its
stakeholders.

81
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

82
Top:
Tioman T-9, built by MSE, is the first Made-in-Malaysia
drill tender barge with the most modern and latest drilling rig
facilities in the world.
Right:
The Mobile Offshore Application Barge (MOAB) being towed from
MSE Shipyard to the offshore installation site for Talisman Malaysia.
FUTURE OUTLOOK
The shipping business outlook for the
near future appears bright with freight
rates projected to remain firm for the
coming year. Demand for logistics
services is expected to be strong in
tandem with world economic growth.
Despite optimism shown in the
economy and shipping market, MISC
will continuously monitor their
development and strategize its
operations accordingly.
Going forward, MISC is poised to grow
its targeted energy transportation
business particularly in Europe and the
Atlantic area (markets west of Suez).
Special emphasis will also be made to
grow the LNG shipping business in
Europe and the USA beyond the two
third party contracts with Gaz de
France and J&S Cheniere. MISC will
also explore and expand its reach into
the Mediterranean, African and Indian
markets for the petroleum shipping
business capitalising on AET’s
strength in the Atlantic Basin. To this
end, a new Regional Business Office
headed by a Senior Management team
member has been set up in London to
drive the growth.
MISC will also concentrate its effort on
transforming MSE to be the premier
heavy engineering business in the
region and building its offshore
business (OBU) into a significant
regional player. MSE and OBU will
focus on servicing the upstream oil
and gas sector, leveraging on
PETRONAS Group’s strengths and
business network.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The current strategy of focusing on long haul services for the Liner business has worked
well for MISC. However, the asset mix of the business will have to be reviewed to
ensure long-term business sustainability. In line with the focus of its Liner business,
MISC will also expand its land logistics assets to strengthen its integrated liner logistics
business, thus expanding its service offering and providing seamless logistics service
to its targeted customers in the energy and consumer product sectors.
During FY2003/2004, MISC continued to build a strong platform for growth in the
energy logistics sector with its enlarged LNG and petroleum fleets, controlling interest
in MSE and emerging offshore business. With this continuing strategic focus on the
energy transportation segment, improving cost competitiveness and emphasis on
developing skills and resources, MISC is positioning itself to realize its vision to
become the preferred provider of world-class maritime transportation and
logistics services.
Appreciation
On behalf of Management, we would like to register our highest regard and gratitude
to Allahyarham Dato’ Hj. Mohd Ali bin Hj. Yasin for his exemplary leadership and
guidance over the past seven years in orchestrating MISC towards becoming the
preferred provider of world-class maritime transportation and logistics services.
Though we miss and grieve the loss of Allahyarham Dato’ Ali, the legacy he left in
terms of exceptional commitment, dedication and professionalism will motivate us to
continue the excellent work he had done in bringing MISC to its current position as a
truly reputable global company.
The Management would also like to thank the staff for their commitment and
diligence, and our valued clients, the Government, its Agencies and stakeholders for
their understanding and support.
Last but not least, the Management wishes to express its gratitude to the Chairman,
Board of Directors and Board Audit Committee for their guidance.
On behalf of the Management Committee,
AMIR HAMZAH BIN AZIZAN MICHAEL TING SII CHING
Regional Business Director General Manager
Europe, Americas, Africa and FSU Corporate Planning Services
Kuala Lumpur Kuala Lumpur
24 May 2004 24 May 2004

Energy transportation business will
continue to be MISC’s focus area of
growth.
83

84
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

“
committed to a clean
& safer environment,
while maintaining
security at all times
”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
85

86
Health, Safety, Security And Environment (HSSE) Report
MISC is committed towards achieving
Health, Safety, Security and Environment
(HSSE) performance excellence in all
our business undertakings. This
commitment has been translated to
various process requirement and
initiatives which has been rigorously
implemented across all Business and
Service Units in MISC. The organisation
has also been proactively monitoring and
following up all incidents, irrespective of
severity. The lessons learnt has been
incorporated and actioned upon as part
of continual improvement. We have also
launched the Fleet Management
Services Safety Campaign with an
objective of achieving “Zero Incident
Zero Accident”.
As a result of sound policy and
framework, management commitment,
initiatives and shipboard conformity, our
HSSE performance has continued to
improve. Our Total Recordable Case
Frequency (TRCF) performance has
improved with a reduction of Personal
Accidents by nearly 15% from the
previous year. By industry standards, our
incident frequency has also improved
with a reduction of incidents by nearly
50% over the last two financial years. No
serious incidents have been recorded in
the last financial year.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
In areas of Security, MISC has always been in compliance with industry requirements
and best practices. Thus the introduction of the International Ship and Port Facility
Security Code (ISPS) in early 2003 was viewed as an opportunity to further improve
our process and procedures. All our Ship Security Plans (SSP) have been approved
by the relevant Recognised Security Organisations (RSO). MISC was the first
shipowner in Malaysia to be awarded the International Ship Security Certificate (ISSC)
when two of our vessels successfully underwent the external certification audit in
January 2004. The certification onboard all our vessels were completed ahead of the
1 July 2004 deadline.
As part of contribution towards national security and to enhance our preventive
measures, we carry out annual integrated anti hijacking drills with the Royal Malaysian
Navy (RMN). The recent drill was onboard the product tanker M.T. Bunga Kemiri off
Lumut and was attended by the Managing Director of MISC and the Fleet Operations
Commander of the Royal Malaysian Navy.
Risk Management has been given priority in order to ensure structured approach
towards risk identification and mitigation. The Maritime Risk Council has reviewed the
various risk identified and has incorporated detailed preventive and recovery
measures as part of continual improvement.
In this financial year, there have been a number of management reviews carried out
by our customers. We have since been accorded with improved management rating,
which further facilitates employment of our vessels on Time Charters and Contract of
Affreighment.
Jabatan Laut Malaysia has also successfully audited us under the International Safety
Management (ISM) Code requirement. No non-conformities were found during the
annual audit, attesting to our commitment and conformance to’ international safety
and environmental requirements.

MISC Corporate Policy On HSSE
MISC’S CORPORATE POLICY IS TO
STRIVE FOR EXCELLENCE IN ALL ITS
ACTIVITIES INCLUDING HEALTH,
SAFETY AND ENVIRONMENT MATTERS.
MISC is committed to give priority to Health, Safety and Environment wherever MISC operates and shall
endeavour to take every reasonable and practicable step to prevent and eliminate the risk of injuries, health
hazards and damage to properties. MISC shall also take proactive steps towards the conservation and
preservation of the environment.
To achieve these objectives, MISC shall ensure that the facilities and services it designs, builds, operates and
provides are in accordance with appropriate legal requirements, industry standards and best practices.
MISC shall provide the necessary resources, organisation, system and training and shall communicate with
employees, contractors, customers, suppliers and the public with regard to appropriate matters on Health,
Safety and Environment.
MISC shall also ensure that contingency plans are in place and maintained to deal with emergencies and
shall periodically review the Health, Safety and Environment management system and practices to ensure
their continual improvement.
Drugs And Alcohol
As the use of drugs and alcohol can impair performance at work, and can be a threat to Health, Safety, and
Environment, it is MISC’s policy that all its operations be DRUGS AND ALCOHOL FREE.This covers self
use, manufacture, sale, possession and distribution of drugs and alcohol at work.
In handling any drugs or alcohol related problem, MISC shall comply to the requirements of local
legislation and industry codes of practice wherever such legislation and codes exist.
All employees and contractors of MISC are required to comply with this policy.
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4 April 2003
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Corporate Highlights
Of The Year
14 April 2003 10 May 2003
17 April 2003
4 April 2003
MISC took delivery of its first 299,999 dwt
Very Large Crude Carrier (VLCC), Bunga
Kasturi, the largest Malaysian flagged
vessel to-date. Bunga Kasturi replaced
the inchartered VLCC, MT Sakura, to
service a long term charter with
PETRONAS, marking MISC’s foray into
the VLCC market.
14 April 2003
MISC placed orders for two LNG tankers
and two Aframax crude oil tankers from
Samsung Heavy Industries Co. Ltd., Korea
as part of its continuous growth strategy
and strengthening of market position.
17 April 2003
A second Very Large Crude Carrier (VLCC)
was ordered from Universal Shipbuilding
Corporation, Japan. This move forms part
of MISC’s planned expansion into the
petroleum tanker services business and
brings the Corporation closer towards
29 April 2003
realising its goal of becoming the premier
energy-based shipping company in the
world.
29 April 2003
History was created when MISC signed a
Stock Purchase Agreement (SPA) with
Neptune Orient Lines (NOL) for the
acquisition of a 100% interest in American
Eagle Tankers Inc. Ltd (AET), a petroleum
tanker company wholly-owned by NOL. A
major boost for MISC in its drive to
become the leading global energy
transport provider, the strategic
acquisition of AET will open up new
geographical presence for MISC in the
Atlantic Basin complementing its existing
Arabian Gulf-Far East market.
10 May 2003
Recognising its role in the training and
development of professional seafarers,
MISC donated one of its vessels, Pernas
Propane, to Akademi Laut Malaysia
(ALAM) to be used as ALAM’s second
training vessel.

4 July 2003
MISC secured two 20-year time charter
party contracts with MLNG Sdn Bhd for the
two LNG carriers built at Samsung Heavy
Industries, Korea, further strengthening its
stable and strong earnings from the LNG
business.
5 July 2003
MISC and its partners in The Grand
Alliance started an additional China -
Europe Loop with the following port
rotation on a weekly frequency - Dalian,
Xingang, Qingdao, Busan, Ningbo,
Kaohsiung, Singapore, Port Klang,
Southampton, Rotterdam, Hamburg,
Gioia Tauro, Singapore, Kaohsiung,
Busan and Dalian.
7 July 2003
4 July 2003
7 July 2003
MISC’s 34th Annual General Meeting and
Extraordinary General Meeting were held.
A final dividend of 15 sen was declared
and approved during the AGM. The total
dividend per share for the financial year
2003/2004 at 30 sen matches the highest
total dividend that was declared in the
previous financial year.
22 July 2003
Completion of the acquisition of American
Eagle Tankers Inc. Ltd. (AET) from
Neptune Orient Lines. MISC benefited
from the timing of the acquisition to
coincide with the upswing of the shipping
market and managed to realize the value
of AET as shown in this year’s results.
15 August 2003
15 August 2003
22 August 2003
MISC signed its second 3rd party time
charter agreement outside the Petronas
Group for LNG vessel, Tenaga Empat, with
J & S Cheniere S.A., a result of MISC’s
aggressive marketing efforts and
competitive pricing structure in LNG
transportation opportunities presented
by the strong growth in world LNG
demand.
17 September 2003
18 September 2003
22 August 2003
MISC signed an agreement for the
construction of its third 298,100 mt Very
Large Crude Carrier (VLCC) with
Universal Shipbuilding Corporation.
17 September 2003
MISC hosted a dinner in conjunction with
the International Council of Containership
Operators (ICCO) Meeting held in Kuala
Lumpur. ICCO, or commonly known as the
Box Club, held their bi-annual meeting in
Malaysia for the first time since their
inception twenty years ago.
18 September 2003
MISC consolidated its Straits India
Pakistan (SIP) and China Straits Service
(CSS) services into a single China Straits
India (CSI ) service with joint partnership
with PIL & K-Line. The new CSI service
provides customers with better port pairs,
coverage and transit times.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
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90 Corporate Highlights Of The Year
(continued)
19 September 2003
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
6 October 2003
14 November 2003
19 September 2003
Naming ceremony of MISC’s 16th LNG
tanker, Puteri Nilam Satu at Mitsubishi
Heavy Industries Shipyard in Nagasaki,
Japan. YBhg. Datin Laila Alias, wife of
Allahyarham Dato’ Hj. Mohd Ali bin
Hj. Yasin, named the vessel which is the
third of the Puteri Satu series LNG
tankers.
6 October 2003
MISC was the main sponsor for the 2nd
Asia Maritime & Logistics Conference
2003 organised by Malaysian Shipowners’
Association (MASA) at Nikko Hotel Kuala
Lumpur. A total of 450 persons involved in
the maritime industry worldwide attended
the Conference.
14 November 2003
MISC marked another milestone with the
delivery of its first Floating Production,
Storage and Offloading (FPSO) facility
which will serve a long-term charter with
PETRONAS Carigali. MT Bunga Kertas,
one of our older petroleum tankers, was
converted into a FPSO at Malaysia
Shipyard & Engineering Sdn Bhd (MSE).
12 January 2004
14 January 2004
12 January 2004
Naming ceremony of MISC’s first two
Aframax crude oil tankers built by
Samsung Heavy Industries. YBhg Puan Sri
Datin Seri Norhainy Hj. Omar, wife of
Board Member, YBhg. Tan Sri Dato’ Seri
Dr. Hj. Zainul Ariff Hj Hussain named the
vessels Bunga Kelana 7 and Bunga
Kelana 8. The addition of these two crude
oil tankers, each with a capacity of more
than 105,500mt into MISC’s petroleum
fleet further strengthens MISC’s position
as the second largest Aframax fleet
owner-operator in the world.
14 January 2004
YBhg. Datin Sri Ursula Teo, wife of Board
Member, YBhg. Dato Sri Liang Kim Bang
named MISC’s 17th LNG tanker, Puteri
Zamrud Satu. The naming ceremony was
held at Mitsui Engineering & Shipbuilding
Shipyard in Chiba, Japan. The addition of
Puteri Zamrud Satu increased MISC’s
total gross LNG capacity to 1.91 million
cubic metres, representing about
10 percent of the total world LNG
capacity.The Corporation’s position as the
largest single LNG fleet owner and
operator in the world is further reaffirmed.

19 January 2004
MISC became the first shipowner in
Malaysia to be awarded the International
Ship Security Certificate (ISSC) when two
of our vessels successfully underwent the
external certification audit. The certification
onboard all our vessels were completed
ahead of the 1 July 2004 deadline.
21 January 2004
MISC ordered two 7,900 TEU
containerships from Daewoo Shipbuilding
& Marine Engineering Co. Ltd.
February 2004
21 January 2004
MISC LNG vessel, Aman Bintulu, was
awarded “Excellent Vessel” by Japanese
Pilot Association (JPA) in recognition of the
vessel’s well upkeeping and excellent
maintenance. The Award, established by
JPA, recognises excellent vessels from the
viewpoint of the pilots for the purpose of
elevating a sense of awareness to protect
ports and maritime environment through
safe cargo operations. SS Aman Bintulu
received the Award for vessels calling at
Kyushu district ports.
27 February 2004
Briefing to Analysts and Investors on
MISC’s Group Third-Quarter Results was
held. The briefing is part of the Group’s
Corporate Governance practice that
enabled investors and analysts to have
latest information on the strategy,
performance and major developments of
MISC.
3 March 2004
Malaysia Rating Corporation reaffirmed
ratings of MISC’s RM1.5billion Murabahah
commercial paper/medium term notes
issuance facility (2000/2005) at MARC
11D/AAA ID .
17 March 2004
MISC acquired an additional 22% interest in
MSE Holdings Sdn. Bhd. (MSE), making it a
65% subsidiary. The company will be
MISC’s heavy engineering arm focussing on
the energy business.
16 April 2004
27 February 2004
February 2004 16 April 2004
MISC exercised its option of ordering
another two 145,000 m 3 LNG tankers with
Samsung Heavy Indusries Co. Ltd.
13 May 2004
13 May 2004
MISC took advantage of the recent
increase in secondhand value of bulk
vessels by divesting 15 of its older
handysize bulk vessels. With the sale of
these vessels, MISC’s dry bulk fleet
consists of 36 vessels with 11 panamaxes,
9 handymaxes, 15 handysizes and
1 multipurpose carrier.
11 June 2004
Moody’s Investors Services upgraded
MISC’s Issuer rating to “Baa1” from
“Baa2” and assigned a “Baa1” rating to
MISC’s proposed USD1 billion senior
unsecured notes.
Standard & Poor’s Rating Services
assigned a “BBB+” rating to MISC’s
proposed USD1 billion senior unsecured
notes.
2 July 2004
MISC successfully completed its inaugural
USD bond issue. The issuance totalled
USD1.1 billion consisting of a USD400
million 5-year tranche and a USD700
million 10-year tranche.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

“
committed to contributing
towards the
development
of thenation,
industry&society
”
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Our Contribution to the Nation –
Growing our Youth in the Maritime
Industry
MISC believes that it is important to be a
loyal partner to the nation’s development
and progress. What better way than to
promote and enhance the skills of our
youth and put the country at par with
other great maritime nations. For the last
30 years, MISC has embraced the role of
training and developing skilled
manpower in the maritime and heavy
engineering industry. Building this pool
of skilled manpower is important as it
reduces the domestic maritime
industry’s reliance on foreign manpower
and expertise.
MISC is committed to training the next
generation of mariners and seafarers not
just for the Group’s advantage but also
to the benefit of other seafaring
industries in the country. The Group’s
efforts on this front began with the
establishment of the Seamen’s Training
School in Malacca, in collaboration with
the Government in 1972. With this, the
Cadet Sponsorship Programme was
realised – an idea that would eventually
provide vast opportunities for the
Malaysian maritime industry in terms of
knowledge, experience and
employment. In 1975, the school was
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Corporate
Social Responsibility
“ As a corporate entity, MISC takes its commitment to Corporate Social Responsibility
(CSR) seriously, and has focused on the area of youth development.The company is mindful of
its social obligations, especially in the areas of training and development, the creation of
employment opportunities and achieving Malaysianisation of our workforce. Ultimately, we want
to improve the quality of life for all Malaysians. As the engine of growth propelling Malaysia’s
development as a leading maritime nation, MISC realises fully the importance of socially
responsible practices, improving the lives and harnessing the potentials of Malaysian Youth.”
upgraded to a Maritime Training Centre, which subsequently in 1981 led to the set up
of Akademi Laut Malaysia (ALAM) as the training ground for deck cadets up to the level
of Master. Two years later, Marine Engineering was introduced in ALAM, which enables
the training of specialized engineers domestically. Today, ALAM is 70% owned by MISC
and 30% by PETRONAS.
In addition, MISC’s heavy engineering business through its subsidiary, Malaysia
Shipyard and Engineering (MSE), has not only contributed to the Group as a premier
provider of services in Malaysia’s oil and gas industry, but also become an essential
training ground for heavy engineering in the country, simultaneously providing
employment opportunities for our youth.
The Road to ‘Malaysianisation’
MISC has actively participated in ALAM with the interest of creating a brighter future for
youths while creating employment opportunities in the maritime industry – taking the
industry and the country to greater heights by having its vessels manned entirely by
Malaysians. This policy of ‘Malaysianisation’ is what MISC aspires to develop and
prioritise in its training and development initiatives, while setting an example for other
companies and industries.
Commitment to Investing in the Youth – the Nation's Future
MISC spends more than RM16 million annually for the full programme at ALAM, South
Tyneside College (United Kingdom) and Politeknik Ungku Omar. Presently, more than
200 students are recruited yearly for the Cadet Sponsorship Programme. Since 1972,
the company has taken in some 3,200 deck and engine cadets, providing not just
technical know-how, but also an environment to put this knowledge to use. These
investments are geared towards facilitating a learning, development and employment
ground for young aspirants.
MISC is committed to contributing to Malaysia's progress as a maritime nation with the
development of competent seafarers. Now, maritime and logistics organisations
nationwide also seek the services of those trained in ALAM, hence putting Malaysia on
the map in terms of training and developing the next generation of mariners.

Malaysians have outnumbered expatriates in all categories from Master,
Officers, Engineers and Ratings. To-date, MISC has achieved 77% Malaysian
Officers and Ratings working onboard Malaysian vessels, while the figure is
substantially higher at 90% for the Liquefied Natural Gas (LNG) Fleet. This is
especially remarkable, considering that expatriates wholly managed all
vessels when MISC embarked on the LNG service in 1980s. MISC is now
proud to be the largest single owner-operator of LNG fleet in the world, which
is a major boost to the large number of Malaysians working onboard the
vessels, considering the opportunities presented to them by the strong growth
in world LNG demand for the future.
The successful development of Malaysian seafarers together with the
development of Malaysian-owned vessels has greatly reduced the nation’s
dependence on foreign seafarers and foreign shipping services respectively.
Therefore, the expenditure on invisible trade is reduced while boosting national
revenues through foreign exchange earnings.
Responsibility to the Maritime Industry
As an active member of the Malaysian Shipowners’ Association (MASA) and
the main sponsor of the annual Asia Maritime and Logistics Conference, MISC
integrates social concerns with business operations on a voluntary basis,
enriching the community and contributing to nation-building.
Other Contributions
As part of the Group’s continuing corporate social responsibility commitment,
MISC also contributed to various orphanages, charity homes and other nonprofit
organisations as well as business and maritime associations and
institutions of higher learning.
At MISC, Corporate Social Responsibility is not just a social obligation,
but also a way of life.
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

“
committed to harnessing
team spirit & cohesiveness
&developing leaders
amongst ourdedicated
professionals ”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
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Staff Development & Welfare:
Sustaining An Integrated Workforce
“ MISC has always considered employees to be the primary asset of the
company. We constantly focus on developing our Human Resources framework to
provide our people with valuable resources and avenues for growth. In line with MISC’s
objectives of building a capable workforce and fostering leadership qualities within the
organisation, employee development programmes are put in place to complement the
company’s global growth strategy. Programmes that provide a balanced mix –
Education,Training and Development, Health and Recreational, and Staff Recognition
– are all exercised to build an integrated workforce and to realise these objectives.”
Education, Training & Development
Training programmes at MISC have
played an important role in the
development of our employees through
sports, education as well as employee
unity. Sports and recreational activities
are carried out to promote wellness and
healthy living among employees. MISC
encourages the involvement of
employees in major sporting activities
through its sports club and annual
events such as the World Maritime Day
Sports, PETRONAS Sports Carnival,
MISC Mini Sports Carnival, as well as
participation in state-level sporting
leagues. These activities not only
promote a healthy lifestyle amongst
MISC employees, but also bring staff
closer together in sharing a sense of
achievement outside of work.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
In advocating the overall development of our workforce, teambuilding and personal
wellness programmes are also included to inculcate a spirit of unity among
employees and create greater awareness towards healthy living.
Unity among employees are enhanced through staff organisations, such as
PETRONITA, a women’s organisation for female employees and wives of male
employees at MISC that is aimed at promoting togetherness and the exchange of
valuable ideas.
In order to equip employees with additional skills and to help position the company
globally, classes in English, Japanese and Mandarin have also been introduced.
These classes better prepare employees for overseas postings and ensure improved
communication between businesses, both locally and internationally. MISC’s
Education Assistance Plan is also extended to staff undertaking courses to enhance
their work, where all tuition, registration and examination fees are provided for.
Committed to Increasing Performance
The Performance Management System (PMS) is an appraisal system where the
superior and subordinate agree at the beginning of the year on what needs to be
accomplished. PMS is complimented by Job Analysis Competency Development
that assesses staff competency and identify gaps. Thereafter, a structured career
development programme is executed to provide a phase-by-phase training module.

This contributes towards the company’s
planning process to identify and develop
the potential next-in-line management
team. The system has indeed helped
employees identify their potential and
career development.
Recognition
Not forgetting those who have
contributed tremendously to the
company, awards are given to employees
who have been committed and dedicated
to MISC for more than 20 years, as well as
those retiring from the company. MISC
believes in recognising the efforts from
employees, as they have in some way or
the other, made a significant and positive
difference in the company.
An integrated workforce for a better
future
MISC believes that the elements of
education, training and development,
assessing employees’ strengths and
enhancing their capabilities provide a
complete package that forms an
integrated workforce.
As the engine of growth, employees of
MISC are recognised as people we
invest in for a better future.
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100
April - September 2003
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Employees Activities
For The Year
May – July 2003
12 – 15 June 2003
April - September 2003
MISC football team participated in
Division One of the Selangor Football
League and achieved 6th placing out of
42 teams.
May - July 2003
MISC hockey team participated in the
2003 KL Hockey League. MISC achieved
third placing.
12 – 15 June 2003
A teambuilding programme was held for
Managers and Executives at Allson Klana
Resort, Negeri Sembilan. This programme
was one of the many held during the year
to build team spirit among employees
within the Group.
14 June 2003
Management Committee members and
some members of Petronita and Badan
Islam MISC (BIM) visited Asrama Damai,
an orphanage home in Kuang, Selangor.
14 June 2003
23 June 2003
2 July 2003
15 – 21 June 2003
An orientation training programme was
held for new Executives to give them a
better perspective of MISC and the
maritime industry.
23 June 2003
MISC contributed 30 used Personal
Computers to Sekolah Menengah
Kebangsaan Ideal Heights, Batu Caves
Selayang.
2 July 2003
An award presentation ceremony was held
for MISC’s most outstanding cadets for
the year. Every year, MISC sponsors more
than 200 cadets under its Cadet
Sponsorship Programme.
9 - 13 July 2003
MISC participated in various games held
in conjunction with PETRONAS Sports
Carnival. Our hockey team emerged
champions.

25 July 2003
Majlis Tilawah Quran MISC, a Quran
reading competition was held for MISC
Muslim employees.
12 August 2003
Five senior management personnel
represented MISC in the ‘KLSE Rat Race’,
a charity run organised by Bursa Malaysia
Berhad together with The Edge.
14 - 16 August 2003
The ‘Pursuit of Wellness’ programme was
held at Awana Resort, Genting Highlands.
It was one of the many health awareness
programmes organised throughout the
year to encourage staff to maintain a
healthy and productive lifestyle.
1 - 12 October 2003
9 – 13 July 2003
25 July 2003
12 August 2003
MISC took part in several sports events
organised by the Marine Department, Port
Klang in conjunction with World Maritime
Day 2003.
7 November 2003
13 - 15 October 2003
A training programme on ‘Coaching for
Managing Performance’ was conducted for
several Managers and Executives on how
to expand their employee’s ability to
produce extraordinary results and become
better leaders.
14 - 16 October 2003
A Pre-Retirement Workshop was held for
employees who were about to retire and
their wives to help them prepare for
retirement.
7 November 2003
PETRONITA’s Charity Curtain & Bedroom
Soft Furnishing Making Competition was
held.
12 November 2003
About 350 guests and staff attended the
Annual Majlis Berbuka Puasa at Labuan
Hall, Menara Dayabumi. MISC Chairman,
12 December 2003
12 November 2003
17 January 2004
YBhg. Tan Sri Dato Sri Hassan bin Marican
and Management Committee members
were at hand to receive guests which
included 40 children from Darul Kifayah,
an orphanage home.
12 December 2003
A Retirement Award Presentation was
held at Mutiara Hotel Kuala Lumpur.
Eight employees received their retirement
award from Allahyarham Dato’ Hj. Mohd
Ali Hj. Yasin.
17 January 2004
A Long Service Award Presentation was
held at Mandarin Oriental Hotel. A total of
54 employees received their 30, 25 and
20 years award from MISC Chairman,
YBhg. Tan Sri Dato Sri Mohd Hassan
bin Marican.
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

“
committed to proper
financialmanagement,
discipline & reporting
to cultivate
strong investor
confidence ”
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Financial Stat e m e n t s
Directors’ Report 105
Statement By Directors 109
Statutory Declaration 110
Report Of The Auditors 111
Income Statements 112
Balance Sheets 113
Statements Of Changes In Equity 114
Cash Flow Statements 115
Notes To The Financial Statements 116

D i re c t o rs ’R e p o rt
For The Financial Year Ended 31 March 2004
The directors are pleased to present their report together with the audited financial statements of the Group and of the Corporation for
the financial year ended 31 March 2004.
PRINCIPAL ACTIVITIES
The principal activities of the Corporation consist of shipowning, ship operating and other activities related to shipping services.
The principal activities of the subsidiaries are described in Note 38 to the financial statements.
There have been no significant changes in the nature of these activities during the financial year other than the Group is now involved in
shipbuilding, ship repairing and heavy engineering works arising from additional acquisition of 22% equity interest in MSE Holdings
Sdn. Bhd. group.
RESULTS
Group Corporation
RM’000 RM’000
Profit after taxation 2,319,277 1,237,633
Minority interests (29,706) –
Net profit for the year 2,289,571 1,237,633
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the statements of
changes in equity.
In the opinion of the directors, the results of the operations of the Group and of the Corporation during the financial year were not affected
by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The amount of dividends paid by the Corporation since 31 March 2003 were as follows:
RM’000
In respect of the financial year ended 31 March 2003 as reported in the directors' report of that year:
Final tax exempt dividend of 15 sen per share, paid on 26 August 2003 278,987
In respect of the financial year ended 31 March 2004:
Interim tax exempt dividend of 15 sen per share, paid on 30 December 2003 278,987
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D i rectors’ Report
( c o n t i n u e d )
DIVIDENDS (CONTINUED)
At the forthcoming Annual General Meeting, the following tax exempt dividends will be proposed for shareholders' approval in respect of
the financial year ended 31 March 2004:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
RM’000
Final tax exempt dividend of 15 sen per share on 1,859,913,793 ordinary shares 278,987
Special tax exempt dividend of 10 sen per share on 1,859,913,793 ordinary shares 185,991
The financial statements for the current financial year do not reflect these proposed dividends. Such dividends, if approved by the
s h a reholders, will be accounted for in shareholders' equity as an appropriation of retained profits in the financial year ending 31 March 2005.
DIRECTORS
The names of the directors of the Corporation in office since the date of the last report and at the date of this report are:
Tan Sri Dato Sri Mohd Hassan bin Marican
Dato Sri Liang Kim Bang
Dato' Seri Dr. Hj. Zainul Ariff bin Hj. Hussain
Mr. Harry K. Menon
Dato' Halipah binti Esa (appointed on 26 April 2004)
Dato' Hj. Mohd Ali bin Hj. Yasin (demised on 19 April 2004)
Datuk Siti Hadzar binti Mohd Ismail (resigned on 25 February 2004)
Dato' Hamzah bin Bakar (resigned on 7 July 2003)
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Corporation was
a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the Corporation or any other
body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than a benefit included
in the aggregate amount of emoluments received or due and receivable by the directors as shown in Note 6 to the financial statements
or the fixed salary of a full-time employee of the Corporation) by reason of a contract made by the Corporation or a related corporation
with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares in the
Corporation and its related corporations during the financial year were as follows:
The Corporation
Number of Ordinary Shares of RM1 Each
1 April 2003 Bought Sold 31 March 2004
Direct
Dato Sri Liang Kim Bang 152,000 – – 152,000
Indirect
Dato Sri Liang Kim Bang 68,000 – – 68,000
Fellow Subsidiary – PETRONAS Dagangan Berhad
Direct
Tan Sri Dato Sri Mohd Hassan bin Marican 1,000 – – 1,000
Fellow Subsidiary – PETRONAS Gas Berhad
Direct
Tan Sri Dato Sri Mohd Hassan bin Marican 5,000 – – 5,000
None of the other directors in office at the end of the financial year had any interest in shares in the Corporation or its related corporations
during the financial year.
OTHER STATUTORY INFORMATION
(a) Before the income statements and balance sheets of the Group and of the Corporation were made out, the directors took reasonable
steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful
debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for
doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary
course of business had been written down to an amount which they might be expected so to realise.
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D i rectors’ Report
( c o n t i n u e d )
OTHER STATUTORY INFORMATION (CONTINUED)
(b) At the date of this report, the directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Corporation misleading.
(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the
existing method of valuation of assets or liabilities of the Group and of the Corporation misleading or inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial
statements of the Group and of the Corporation which would render any amount stated in the financial statements misleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Group and of the Corporation which has arisen since the end of the financial year which secures
the liabilities of any other person; or
(ii) any contingent liability of the Group or of the Corporation which has arisen since the end of the financial year.
(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months
after the end of the financial year which will or may affect the ability of the Group or of the Corporation to meet their obligations
when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and
the date of this report which is likely to affect substantially the results of the operations of the Group or of the Corporation for
the financial year in which this report is made.
SIGNIFICANT EVENTS
The significant events during the financial year are disclosed in Note 40 to the financial statements.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors.
TAN SRI DATO SRI MOHD HASSAN BIN MARICAN DATO’ SERI DR. HJ. ZAINUL ARIFF BIN HJ. HUSSAIN
Kuala Lumpur, Malaysia
Date: 24 May 2004
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

S t atement By Dire c t o rs
Pursuant To Section 169(15) Of The Companies Act, 1965
We, TAN SRI DATO SRI MOHD HASSAN BIN MARICAN and DATO' SERI DR. HJ. ZAINUL ARIFF BIN HJ. HUSSAIN, being two of the
directors of Malaysia International Shipping Corporation Berhad, do hereby state that in the opinion of the directors, the
accompanying financial statements set out on pages 112 to 177 are drawn up in accordance with applicable Approved Accounting
Standards in Malaysia and the provisions of the Companies Act, 1965 so as to give a true and fair view of the financial position of
the Group and of the Corporation as at 31 March 2004 and of the results and the cash flows of the Group and of the Corporation for
the year then ended.
Signed on behalf of the Board in accordance
with a resolution of the directors
TAN SRI DATO SRI MOHD HASSAN BIN MARICAN DATO’ SERI DR. HJ. ZAINUL ARIFF BIN HJ. HUSSAIN
Kuala Lumpur, Malaysia
Date: 24 May 2004
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Statutory Declaration
Pursuant To Section 169(16) Of The Companies Act, 1965
I, NORAINI BINTI CHE DAN, being the officer primarily responsible for the financial management of Malaysia International Shipping
Corporation Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 112 to 177 are
in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions
of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed
NORAINI BINTI CHE DAN at Kuala Lumpur in Wilayah Persekutuan
on 24 May 2004
Before me:
HARON HASHIM
Commissioner for Oaths
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

Report Of The Auditors
To The Members Of Malaysia International Shipping Corporation Berhad
(Incorporated In Malaysia)
We have audited the accompanying financial statements set out on pages 112 to 177. These financial statements are the responsibility of
the Corporation’s directors. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall presentation
of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable
Approved Accounting Standards in Malaysia so as to give a true and fair view of:
(i) the financial position of the Group and of the Corporation as at 31 March 2004 and of the results and the cash flows of the Group
and of the Corporation for the year then ended; and
(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and
(b) the accounting and other records and the registers required by the Act to be kept by the Corporation and by its subsidiaries of which
we have acted as auditors have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and the auditors' reports thereon of the subsidiaries of which we have not acted as auditors,
as indicated in Note 38 to the financial statements, being financial statements that have been included in the consolidated financial
statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the
Corporation are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements
and we have received satisfactory information and explanations required by us for those purposes.
The auditors' reports on the financial statements of the subsidiaries were not subject to any qualification material to the consolidated
financial statements and in respect of subsidiaries incorporated in Malaysia, did not include any comment required to be made under
Section 174(3) of the Act.
ERNST & YOUNG HABIBAH BTE ABDUL
AF: 0039 No. 1210/05/06(J)
Chartered Accountants Partner
Kuala Lumpur, Malaysia
Date: 24 May 2004
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Income Stat e m e n t s
For The Year Ended 31 March 2004
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
Note 2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Revenue 3 7,606,271 5,432,996 4,314,340 3,822,598
Cost of sales (4,483,721) (3,508,981) (3,098,856) (2,915,708)
Gross profit 3,122,550 1,924,015 1,215,484 906,890
Other operating income 63,694 60,749 490,194 940,813
General and administrative expenses (676,824) (545,246) (432,663) (606,244)
Profit from operations 4 2,509,420 1,439,518 1,273,015 1,241,459
Finance costs 7 (210,493) (169,581) (35,382) (41,149)
Share of results of associated companies 27,477 40,363 – –
Profit before taxation 2,326,404 1,310,300 1,237,633 1,200,310
Taxation 8 (7,127) 3,507 – –
Profit after taxation 2,319,277 1,313,807 1,237,633 1,200,310
Minority interests (29,706) (3,144) – –
Net profit for the year 2,289,571 1,310,663 1,237,633 1,200,310
Basic earnings per share (sen) 9 123.1 70.5
The accompanying notes form an integral part of the financial statements.

Balance Sheets
As At 31 March 2004
NON-CURRENT ASSETS
Group Corporation
Note 2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Ships 11 16,975,690 11,747,304 6,719,637 5,911,846
Property and equipment 11 901,777 382,766 345,735 304,503
Subsidiaries 12 – – 2,675,924 2,451,273
Associated companies 13 134,862 334,345 – –
Other investments 14 236,254 236,502 51,449 51,449
Intangible assets 15 975,896 381,319 – –
Deferred tax assets 29 8,849 – – –
CURRENT ASSETS
19,233,328 13,082,236 9,792,745 8,719,071
Due from group companies 16 33,538 49,968 1,235,399 2,273,436
Due from associated companies 17 1,484 17,921 1,479 17,960
Inventories 18 128,486 61,715 81,284 57,541
Receivables 19 1,099,660 479,705 421,527 333,419
Marketable securities 21 5,432 5,106 5,432 4,695
Cash, deposits and bank balances 22 1,853,586 1,029,652 497,870 245,711
CURRENT LIABILITIES
3,122,186 1,644,067 2,242,991 2,932,762
Due to group companies 23 105,812 102,010 287,823 119,983
Due to associated companies 24 1,147 3,052 813 2,789
Provision for taxation 3,951 1,198 – –
Payables and accruals 25 1,204,020 667,043 535,211 486,160
Short term borrowings 26 5,189,770 2,148,899 600,000 1,110,671
6,504,700 2,922,202 1,423,847 1,719,603
NET CURRENT (LIABILITIES)/ASSETS (3,382,514) (1,278,135) 819,144 1,213,159
CAPITAL AND RESERVES
15,850,814 11,804,101 10,611,889 9,932,230
Share capital 27 1,859,914 1,859,914 1,859,914 1,859,914
Share premium 460,882 460,882 460,882 460,882
Other reserves 28 99,993 96,802 35,217 38,921
Retained profits 8,931,002 7,200,722 7,852,172 7,172,513
SHAREHOLDERS' FUNDS 11,351,791 9,618,320 10,208,185 9,532,230
MINORITY INTERESTS 251,247 75,048 – –
NON-CURRENT LIABILITIES
Long term borrowings 26 4,166,481 2,095,808 400,000 400,000
Deferred taxation 29 81,295 14,925 3,704 –
The accompanying notes form an integral part of the financial statements.
15,850,814 11,804,101 10,611,889 9,932,230
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

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S t atements Of Changes In Equity
For The Year Ended 31 March 2004
Share
Capital* Non-distributable Distributable
Ordinary Share Other Retained
Group Note Shares Premium Reserves Profits Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 1 April 2002 1,859,914 460,882 86,916 6,453,535 8,861,247
Currency translation differences 28 – – 4,384 – 4,384
Transfer to reserves from retained profits 28 – – 5,502 (5,502) –
Net gain not recognised in income statement – – 9,886 (5,502) 4,384
Net profit for the year – – – 1,310,663 1,310,663
Dividends 10 – – – (557,974) (557,974)
At 31 March 2003 1,859,914 460,882 96,802 7,200,722 9,618,320
At 1 April 2003 1,859,914 460,882 96,802 7,200,722 9,618,320
Currency translation differences 28 – – 5,523 – 5,523
Transfer to reserves from retained profits 28 – – 1,317 (1,317) –
Net gain not recognised in income statement – – 6,840 (1,317) 5,523
Net profit for the year – – – 2,289,571 2,289,571
Deferred tax liabilities recognised on
revaluation reserve 28 – – (3,649) – (3,649)
Dividends 10 – – – (557,974) (557,974)
At 31 March 2004 1,859,914 460,882 99,993 8,931,002 11,351,791
Corporation
At 1 April 2002 1,859,914 460,882 38,921 6,530,177 8,889,894
Net profit for the year – – – 1,200,310 1,200,310
Dividends 10 – – – (557,974) (557,974)
At 31 March 2003 1,859,914 460,882 38,921 7,172,513 9,532,230
At 1 April 2003 1,859,914 460,882 38,921 7,172,513 9,532,230
Net profit for the year – – – 1,237,633 1,237,633
Deferred tax liabilities recognised on
revaluation reserve – – (3,704) – (3,704)
Dividends 10 – – – (557,974) (557,974)
At 31 March 2004 1,859,914 460,882 35,217 7,852,172 10,208,185
* Included in share capital is one preference share of RM1 (2003: RM1).
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The accompanying notes form an integral part of the financial statements.

Cash Flow Stat e m e n t s
For The Year Ended 31 March 2004
Group Corporation
Note 2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Cash receipts from customers 7,518,841 5,514,790 5,225,585 3,866,419
Cash paid to suppliers and employees (5,069,326) (3,155,738) (2,753,683) (2,748,638)
Cash from operations 2,449,515 2,359,052 2,471,902 1,117,781
Taxation paid (3,658) (3,827) – –
Net cash generated from operating activities 2,445,857 2,355,225 2,471,902 1,117,781
Net cash used in investing activities 30 (4,367,670) (1,851,170) (1,119,573) (1,019,350)
Net cash generated from/(used in) financing activities 31 2,750,056 (1,148,298) (1,093,493) 31,330
Net increase/(decrease) in cash and cash equivalents 828,243 (644,243) 258,836 129,761
Cash and cash equivalents at beginning of financial year 1,018,981 1,659,797 235,040 103,288
Currency translation differences 6,362 3,427 3,994 1,991
Cash and cash equivalents at end of financial year 1,853,586 1,018,981 497,870 235,040
Cash and cash equivalents comprise:
Cash, deposits and bank balances (Note 22) 1,853,586 1,029,652 497,870 245,711
Bank overdraft (Note 26) – (10,671) – (10,671)
The accompanying notes form an integral part of the financial statements.
1,853,586 1,018,981 497,870 235,040
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

116
Notes To The Financial Stat e m e n t s
31 March 2004
1. CORPORATE INFORMATION
The principal activities of the Corporation consist of shipowning, ship operating and other activities related to shipping services.
The principal activities of the subsidiaries are described in Note 38.
There have been no significant changes in the nature of these activities during the financial year other than the Group is now involved
in shipbuilding, ship repairing and heavy engineering works arising from additional acquisition of 22% equity interest in MSE Holdings
Sdn. Bhd. group.
The Corporation is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Board of Bursa
Malaysia Securities Berhad. The registered office of the Corporation is located at Level 25, Menara Dayabumi, Jalan Sultan
Hishamuddin, 50050 Kuala Lumpur.
The holding and ultimate holding company of the Corporation is Petroliam Nasional Berhad, a company incorporated and domiciled
in Malaysia.
The number of employees in the Group and in the Corporation at the end of the financial year were 8,780 (2003: 6,659) and 4,023
(2003: 4,472) respectively.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on
24 May 2004.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements of the Group and of the Corporation have been prepared under the historical cost convention unless
otherwise indicated in the accounting policies below. The financial statements comply with the provisions of the Companies Act,
1965 and applicable Approved Accounting Standards in Malaysia.
During the financial year ended 31 March 2004, the Group and the Corporation adopted the following Malaysian Accounting
Standards Board (“MASB”) Standards for the first time:
MASB 25 Income Taxes
MASB 27 Borrowing Costs
MASB 29 Employee Benefits
The adoption of these MASBs have not given rise to any adjustments to the opening balances of retained profits of the prior and
current year or to any material changes in comparatives.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Basis of Consolidation
(i) Subsidiaries
The consolidated financial statements include the financial statements of the Corporation and all its subsidiaries.
Subsidiaries are those companies in which the Group has a long term equity interest and where it has power to exercise
control over the financial and operating policies so as to obtain benefits therefrom. Subsidiaries are deconsolidated from
the effective date of any circumstances or events giving rise to the cessation of control over their financial and operating
policies.
Subsidiaries are consolidated using the acquisition method of accounting except for the acquisition of subsidiaries which
meet the criteria for merger, in which case such acquisitions are accounted for using merger accounting principles. Under
the acquisition method, the results of subsidiaries acquired or disposed during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. The assets
and liabilities of a subsidiary are measured at their fair values at the date of acquisition and these values are reflected in the
consolidated balance sheet. The difference between the cost of an acquisition over the fair value of the Group’s share of
the net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet as goodwill
or reserve arising on consolidation and is amortised or credited to income statement on a straight line basis over 5 to 20
years. Where an indication of impairment exists, the carrying value of goodwill is written down immediately to its recoverable
amount.
When the merger method is used, the cost of investment in the Corporation’s book is recorded at the nominal value of
shares issued and the difference between the carrying value of the investment and the nominal value of shares acquired is
treated as merger reserve or merger deficit. The results of the companies being merged are included as if the merger had
been effected throughout the current and previous financial years.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidated
financial statements reflect external transactions only.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group’s share of its
net assets together with any unamortised balance of goodwill and exchange differences which were not previously
recognised in the consolidated income statement.
Minority interest is measured at the minorities' share of the post acquisition fair values of the identifiable assets and liabilities
of the acquiree.
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118
Notes To The Financial Statements
( c o n t i n u e d )
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Basis of Consolidation (continued)
(ii) Associated Companies
Associated companies are those companies in which the Group has a long term equity interest and is in a position to
exercise significant influence. Significant influence is the power to participate in the financial and operating policy decisions
of the associated companies but not control over those policies.
Investments in associated companies are accounted for in the consolidated financial statements by the equity method of
accounting based on the audited or management financial statements of the associated companies. Under the equity
method of accounting, the Group's share of post acquisition profits less losses of associated companies during the year is
included in the consolidated income statement. The Group's interest in associated companies is carried in the consolidated
balance sheet at cost plus the Group's share of post-acquisition retained profits or accumulated losses and other reserves
as well as goodwill on acquisition. Goodwill or reserve arising on acquisition of associated companies is amortised or
credited to the income statement on a straight line basis over 5 years or its estimated useful life, whichever is shorter. Where
an indication of impairment exists, the carrying value of goodwill is written down immediately to its recoverable amount.
Unrealised gains on transactions between the Group and the associated companies are eliminated to the extent of the
Group’s interest in the associated companies. Unrealised losses are eliminated unless cost cannot be recovered.
(c) Other Intangible Assets
Other intangible assets represent the consideration paid in respect of charter hire contracts of subsidiaries at the date of
acquisition and are stated at the fair values of the charter hire contracts based on valuations performed by independent
professional valuers. Where the aggregate of the fair values of separable net assets of the subsidiaries exceeds the fair value of
purchase consideration, the fair value of the charter hire contract is reduced by this amount.
Other intangible assets are amortised on a straight line basis over the remaining period of the respective charters ranging from
15 to 20 years or the estimated remaining useful lives of the vessels concerned, whichever is shorter. Where an indication of
impairment exists, the carrying value of intangible assets is written down immediately to its recoverable amount.
(d) Investments in Subsidiaries and Associated Companies
Investments in subsidiaries and associated companies are stated at cost less impairment losses. Where an indication of
impairment exists, the carrying value of investment is written down immediately to its recoverable value.
On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is recognised in the
income statement.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Ship, Property and Equipment and Depreciation
Ship, property and equipment are stated at cost less accumulated depreciation and impairment losses. Where an indication
of impairment exists, the carrying value of the asset is assessed and written down immediately to its recoverable amount.
Freehold land, ships under construction, systems work in progress and construction in progress are not depreciated.
Leasehold land is depreciated on a straight line basis over the period of the respective leases which range from 15 to 99
years. Depreciation of ships under construction commences from the date of delivery of the ships. Depreciation of ships in
operation is provided on a straight line basis to write off the cost of each ship to its residual value over its estimated useful
life.
Depreciation of ship, property and equipment is provided for on a straight line basis to write off the cost of each asset to its
residual value over the estimated useful life at the following annual rates:
Ships constructed 20 years
Ships purchased Remaining useful life
Buildings 2% - 3%
Containers 8% - 15%
Motor vehicles 20% - 33.3%
Furniture, fittings and equipment 10% - 33.3%
Computer software and hardware 15% - 33.3%
Trailers and prime movers 10% - 20%
Plant and machinery 10% - 20%
Tugboats, engines and pushers 6.7% - 20%
Drydocks and waste plant 2% - 10%
Loose tools 20%
Lightering and warehouse equipment 12.5% - 50%
Freehold land and building of the Corporation have not been revalued since they were revalued in 1984. The directors have
not adopted a policy of regular revaluations of such assets. As permitted under the transitional provisions of IAS 16 (Revised):
Property, Plant and Equipment, these assets continue to be stated at their original valuation less accumulated depreciation
and impairment losses.
Upon the disposal of an item of ship, property or equipment, the difference between the net disposal proceeds and the
carrying amount is charged or credited to the income statement.
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120
Notes To The Financial Statements
( c o n t i n u e d )
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Inventories
Inventories which comprise bunkers, lubricants, spares, raw materials and consumable stores are held for own consumption
and are stated at the lower of cost and net realisable value. Cost is arrived at on the weighted average basis and comprises
the purchase price and other direct charges.
In prior years, the Group recognised the cost incurred on spares to the income statements. With effect from the current
financial year, the Group changed its accounting policy on spares by capitalising as inventories and charging to income
statement as and when used. The change in accounting policy has been applied to current and future years as the effect to
the opening balances of retained profits of the Group and the Corporation for the prior and current year cannot be reasonably
determined.
(g) Cash and Cash Equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank, deposits at call
and short term highly liquid investments which have an insignificant risk of changes in value, net of outstanding bank overdraft.
(h) Operating Lease
Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as
operating leases. Operating lease expenses are recognised in the income statement on a straight-line basis over the lease
term.
(i) Provisions for Liabilities
Provisions for liabilities are recognised when the Group has a present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of
the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure
expected to be required to settle the obligation.
Provision for warranty is set up based on service histories to cover the estimated liability that may arise during the warranty
period. Any surplus provision will be written back at the end of the warranty period while additional provision is made as
necessary.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Income Tax
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income
taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the
balance sheet date.
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised
for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax
losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary
difference arises from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is
not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised
in the income statement, except when it arises from a transaction which is recognised directly in equity, in which case the
deferred tax is also charged or credited directly in equity, or when it arises from a business combination that is an acquisition, in
which case the deferred tax is included in the resulting goodwill or negative goodwill.
Prior to the adoption of MASB 25: Income Taxes on 1 April 2003, deferred tax was provided for using the liability method in
respect of significant timing differences and deferred tax assets were not recognised unless there was reasonable expectation
of their realisation. This change in accounting policy has not given rise to any adjustments to the opening balance of retained
profits of the prior and current year or to changes in comparatives.
(k) Dry Docking Expenditure
Dry docking expenditure is recognised in the income statement as and when incurred.
(l) Employee Benefits
(i) Short term benefits
Wages, salaries, bonuses, commission and social security contributions are recognised as an expense in the year in which
the associated services are rendered by employees of the Group. Short term accumulating compensated absences such as
paid annual leave are recognised when services are rendered by employees that increase their entitlement to future
compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised when
the absences occur.
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122
Notes To The Financial Statements
( c o n t i n u e d )
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(l) Employee Benefits (continued)
(ii) Defined contribution plan
As required by law, companies in Malaysia make contribution to the state pension scheme, the Employees Provident Fund
("EPF"). Some of the Group's foreign subsidiaries make contributions to their respective countries' statutory pension
schemes. Such contributions are recognised as an expense in the income statement as incurred.
Contributions in respect of defined contribution schemes are recognised in the income statement when they are payable to
PETRONAS Retirement Benefit Fund for eligible employees. The details of the scheme are disclosed in Note 36.
(iii) Termination benefits
The Group pays termination benefits in cases of termination of employment within the framework of a separation scheme.
Termination benefits are recognised as a liability and an expense on accrued basis.
(m) Revenue Recognition
Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the enterprise
and the amount of the revenue can be measured reliably.
(i) Freight income
Freight receivable and the relevant discharge costs of cargoes loaded onto ships up to the balance sheet date are accrued
for in the financial statements.
(ii) Charter income
The results of ships employed and voyage charter and that of other services rendered by the Group are accounted for on
a time accrual basis.
(iii) Lightering income
Income on lightering charges is recognised on percentage of completion of voyages calculated on a discharge-to-discharge
basis. The voyage revenue is recognised evenly over the period from a vessel's departure from its previous discharge point
to its projected departure from its next discharge point.
(iv) Other shipping related income
Revenue from services rendered is recognised net of service taxes and discounts as and when the services are performed.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Revenue Recognition (continued)
(v) Construction contracts
Where the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are
recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the
balance sheet date. The stage of completion is measured by reference to the proportion of contract costs incurred for
work performed to date to the estimated total contract costs.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent
of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period
in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an
expense immediately.
When costs incurred on construction contracts plus recognised profits (less recognised losses) exceeds progress billings,
the balance is shown as amount due from customers on contracts. When progress billings exceed costs incurred plus
recognised profits (less recognised losses), the balance is shown as amount due to customers on contracts.
(vi) Dividend income
Dividend income is recognised when the shareholders' right to receive payment is established.
(n) Foreign Currencies
(i) Foreign currency transactions
Transactions in foreign currencies are converted into Ringgit Malaysia at rates of exchange ruling at the date of the
transaction. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at
exchange rates ruling at that date. Non-monetary items which are carried at historical cost are translated using the
historical rate as of the date of acquisition and non-monetary items which are carried at fair value are translated using the
exchange rate that existed when the values were determined. All exchange rate differences are taken to the income
statement.
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124
Notes To The Financial Statements
( c o n t i n u e d )
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n) Foreign Currencies (continued)
(ii) Foreign entities
Financial statements of foreign consolidated subsidiaries are translated at year end exchange rates with respect to assets
and liabilities, and at average exchange rates with respect to the income statement. All resulting translation differences are
taken to the currency translation differences reserve in shareholders’ equity. On disposal of the foreign entity, such
translation differences are recognised in the income statement as part of the gain or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the
Group and translated at the exchange rate ruling at the date of the transaction.
The principal exchange rates for every unit of foreign currency ruling at balance sheet date used are as follows:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
2004 2003
RM RM
United States Dollar 3.80 3.80
Sterling Pound 6.44 6.08
Australian Dollar 2.64 2.25
EURO 4.47 4.09
Japanese Yen 0.03 0.03
Singapore Dollar 2.20 2.19
(o) Financial Instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of
the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual agreement.
Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income.
Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset
when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and
settle the liability simultaneously. The financial risk management objectives and policies are disclosed in Note 37.
(p) Other Investments
Other investments are stated at cost less provision for any permanent diminution in value.
On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the income
statement.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(q) Marketable Securities
Marketable securities are carried at the lower of cost and market value, determined on an aggregate portfolio basis by
category of investments. Cost is determined on the weighted average basis while market value is determined based on
quoted market values. Increases or decreases in the carrying amount of marketable securities are recognised in the income
statement. On disposal of marketable securities, the difference between net disposal proceeds and the carrying amount is
recognised in the income statement.
(r) Receivables
Trade and other receivables are carried at anticipated realisable values. Bad debts are written off when identified.
An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date.
Amount receivable and payable with the same party are offset when they are permissable under the ordinary course of
business.
(s) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services
received.
(t) Interest-Bearing Borrowings and Borrowing Costs
Interest-bearing bank loans and overdraft are recorded at the face value of loan amount.
Borrowing costs comprise debts issuance costs and interest costs. Borrowing costs related to ship, property and equipment
under construction are capitalised until the assets are ready for their intended use. All other borrowing costs are recognised
in the income statement as an expense in the period in which they are incurred.
(u) Non-Convertible Cumulative Redeemable Preference Shares ("NCRPS")
NCRPS are classified as long term liability in the balance sheet and the related dividends are recognised in the income
statement as interest expense in the period in which they are incurred.
(v) Equity Instruments
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they
are declared.
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126
Notes To The Financial Statements
( c o n t i n u e d )
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(w) Derivative Financial Instruments
Derivative financial instruments are not recognised in the financial statements on inception.
Interest rate swap contracts
Net differentials in interest receipts and payments arising from interest rate swap contracts are recognised as interest income or
expense over the period of the contract.
Forward foreign exchange contracts
Subsequent to the acquisition of MSE Holdings Sdn. Bhd., the Group was involved in foreign currency forward contracts to
protect the Group from movements in exchange rates by establishing the rate at which a foreign currency asset or liability will
be settled.
Exchange gains and losses arising on contracts entered into as hedges of anticipated future transactions are deferred until the
date of such transaction, at which time they are included in the measurement of such transactions.
All other exchange gains and losses relating to hedge instruments are recognised in the income statement in the same financial
year as the exchange differences on the underlying hedged items. Gains and losses on contracts which are no longer designated
as hedges are included in the income statement.
(x) Repairs and Maintenance
Repairs and maintenance costs are recognised in the income statement as incurred. Major renewals and improvements are
capitalised.
(y) Charter Hire Expenses
3. REVENUE
Charter hire expenses are recognised in the income statement as incurred.
Revenue of the Group and of the Corporation consists of the following:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Freight income 2,094,162 1,625,694 2,094,162 1,625,694
Charter and lightering income 5,155,994 3,526,332 2,084,632 2,089,477
Other shipping related income 356,115 280,970 135,546 107,427
7,606,271 5,432,996 4,314,340 3,822,598

4. PROFIT FROM OPERATIONS
Profit from operations is stated:
After charging:
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Charter hire expense 651,708 410,821 553,720 410,821
Inventories used 660,773 419,038 493,437 385,266
Ship, property and equipment:
- Depreciation 1,126,496 900,713 575,445 604,848
- Written off 1,934 1,740 1,934 1,391
- Impairment loss 1,311 – – –
Staff costs (Note 5) 503,205 466,253 339,888 325,740
Dry docking expense 76,841 136,919 65,218 80,743
Auditors' remuneration
- Auditors of the Corporation
- Statutory audits 679 563 294 210
- Other services 201 56 191 56
- Other auditors
- Statutory audits 733 377 – –
- Other services 160 85 – –
Operating lease rental 201 153 – –
Rental of land and buildings 15,881 14,577 10,866 10,932
Rental of equipment 96,799 127,307 93,760 123,829
Amortisation of intangible assets 50,214 39,677 – –
Impairment loss in goodwill – 8,021 – –
Waiver of amount due from a subsidiary – – – 209,000
Fees payable to ultimate holding company
for services of a director 265 900 265 900
Provision for:
- Doubtful debts, net 6,856 14,402 – 8,000
- Diminution in value of unquoted investments 72 252 – –
Bad debts written off 916 609 – –
Inventories written off 184 – 177 –
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128
Notes To The Financial Statements
( c o n t i n u e d )
4. PROFIT FROM OPERATIONS (CONTINUED)
And crediting:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Dividends receivable (gross):
- Subsidiaries (unquoted) – – 420,759 874,931
- Quoted in/outside Malaysia 8,154 5,335 913 1,004
- Other unquoted investments 444 322 – –
Gain on disposal of property and equipment 3,859 761 3,639 279
Gain on disposal of investment in associated company 745 – – –
Gain on disposal of marketable securities 2,556 182 1,368 162
Interest income from:
- Subsidiaries – – 10,724 10,058
- Deposits 20,378 28,388 5,974 3,582
Rental income from:
- Subsidiaries – – 7,141 7,599
- Others 3,257 3,640 2,647 3,054
Net exchange gains:
- Realised 4,986 6,773 4,407 5,424
- Unrealised 6,458 4,471 7,027 4,471
5. STAFF COSTS
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Wages and salaries 393,862 364,874 268,492 257,384
Bonus 18,162 10,261 7,180 5,935
Termination benefits 8,685 21,247 6,739 11,512
Social security costs 1,732 1,765 431 244
Pension costs:
- Employees Provident Fund and other statutory
pension schemes 15,638 14,744 5,606 6,444
- Contribution to PETRONAS Retirement Benefit Fund 1,085 1,414 – –
Other staff related expenses 64,041 51,948 51,440 44,221
503,205 466,253 339,888 325,740
Included in staff costs of the Group and of the Corporation are executive directors' remuneration amounting to RM1,549,000
(2003: RM1,453,000) and RM322,000 (2003: RMNil) respectively as further disclosed in Note 6.

6. DIRECTORS’ REMUNERATION
Directors of the Corporation
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Executive:
Salaries and other emoluments 322 – 322 –
Fees 47 – 47 –
Benefits-in-kind 19 – 19 –
388 – 388 –
Non-Executive:
Fees 262 295 262 295
Other Directors
Executive:
Salaries and other emoluments 1,227 1,453 – –
Fees 7 – – –
Benefits-in-kind – 223 – –
1,234 1,676 – –
Non-Executive:
Fees 230 47 – –
Total 2,114 2,018 650 295
Total (excluding benefits-in-kind) 2,095 1,795 631 295
The number of directors of the Corporation whose total remuneration during the year fell within the following bands is analysed below:
Number of Directors
2004 2003
Executive director:
RM350,001 - RM400,000 1 –
Non-Executive directors:
RM1 - RM50,000 4 4
RM51,000 - RM100,000 2 2
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130
Notes To The Financial Statements
( c o n t i n u e d )
7. FINANCE COSTS
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Interest expense 172,698 123,570 – 333
Islamic Private Debt Securities 35,382 40,816 35,382 40,816
Non-convertible cumulative redeemable preference share dividend 2,413 5,195 – –
8. TAXATION
Taxation for the financial year comprises
the following charge/(credit):
210,493 169,581 35,382 41,149
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
In Malaysia
Income tax - current year
- Charge 15,148 3,124 – –
- Credit (10,349) (16,722) – –
Income tax - under provision in prior years 586 318 – –
Transfer (to)/from deferred taxation (Note 29) (3,163) 531 – –
Outside Malaysia
Income tax - current year 1,903 1,704 – –
Income tax - under provision in prior years 183 223 – –
Transfer to deferred taxation (Note 29) (86) (109) – –
Share of taxation of associated companies:
4,222 (10,931) – –
In Malaysia
Income tax - current year 2,632 8,382 – –
Outside Malaysia
Income tax - current year 273 (958) – –
2,905 7,424 – –
7,127 (3,507) – –

8. TAXATION (CONTINUED)
A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at
the effective income tax rate of the Group and of the Corporation is as follows:
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Profit before taxation 2,326,404 1,310,300 1,237,633 1,200,310
Taxation at Malaysian statutory tax rate of 28% (2003: 28%) 651,393 366,884 346,537 336,087
Effect of different tax rates in other countries 29,337 (1,115) – –
Income not subject to tax:
- Tax exempt shipping income (1,079,059) (687,722) (429,516) (360,939)
- Other tax exempt income (5,546) (18,486) (117,813) (246,559)
Expenses not deductible for tax purposes:
- Depreciation and amortisation 314,561 249,273 151,432 159,698
- Waiver of due from a subsidiary – – – 58,520
- Other expenses 57,981 40,187 32,922 24,371
Tax losses not allowable for future utilisation 21,683 19,697 – –
Utilisation of previously unrecognised tax losses and
capital allowances (12,067) (11,224) (7,900) (7,557)
Deferred tax assets recognised during the year (4,031) (150) – –
Deferred tax assets not recognised during the year 32,106 38,608 24,338 36,379
Income tax underprovided in prior years 769 541 – –
Taxation for the year 7,127 (3,507) – –
Tax exempt shipping income are derived from the operations of the Group's sea-going Malaysian registered ships under Section 54A
of the Malaysian Income Tax Act, 1967 and ships registered outside Malaysia under tax jurisdictions of other countries.
The Corporation has sufficient tax exempt income to frank the payment of dividend out of its entire retained profits as at 31 March
2004, subject to agreement with Inland Revenue Board.
9. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit for the year by the weighted average number of ordinary shares in
issue during the financial year.
Group
2004 2003
Net profit for the year (RM'000) 2,289,571 1,310,663
Weighted average number of ordinary shares in issue ('000) 1,859,914 1,859,914
Basic earnings per share (sen) 123.1 70.5
Diluted earnings per share are not presented as there were no potential dilutive ordinary shares outstanding as at 31 March 2004.
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132
Notes To The Financial Statements
( c o n t i n u e d )
10. DIVIDENDS
In respect of financial year:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Amount Net Dividend per Share
2004 2003 2004 2003
RM’000 RM’000 Sen Sen
31 March 2003
Final tax exempt dividend of 15 sen per share 278,987 278,987 15.0 15.0
31 March 2004
Interim tax exempt dividend of 15 sen per share 278,987 278,987 15.0 15.0
557,974 557,974 30.0 30.0
At the forthcoming Annual General Meeting, the following tax exempt dividends will be proposed for shareholders' approval in respect
of the financial year ended 31 March 2004:
RM’000
Final tax exempt dividend of 15 sen per share on 1,859,913,793 ordinary shares 278,987
Special tax exempt dividend of 10 sen per share on 1,859,913,793 ordinary shares 185,991
The financial statements for the current financial year do not reflect these proposed dividends. Such dividends, if approved by
the shareholders, will be accounted for in shareholders' equity as an appropriation of retained profits in the financial year ending
31 March 2005.

11. SHIP, PROPERTY AND EQUIPMENT
Assets of Disposals Currency
At subsidiary and translation At
1.4.2003 acquired Additions write-offs Transfers differences 31.3.2004
Group - 31 March 2004 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Ships
At cost:
Ships in operation 16,944,526 4,535,774 902,793 (6,352) 1,346,412 – 23,723,153
Ships under construction 1,706,488 294,362 1,538,289 – (1,346,412) – 2,192,727
Property and equipment
At 1984 valuation:
18,651,014 4,830,136 2,441,082 (6,352) – – 25,915,880
Freehold land 22,300 – – – – – 22,300
Freehold buildings 23,699 – – – – – 23,699
At cost:
Freehold land 12,192 1,662 – – – 605 14,459
Long leasehold land 88,856 78,260 – – – – 167,116
Short leasehold land 10,888 – – – – – 10,888
Freehold buildings 49,296 3,480 475 – – 1,204 54,455
Leasehold buildings 69,900 – 1,683 – – – 71,583
Drydocks and waste plant – 390,851 – – – – 390,851
Containers 283,585 – – (29,066) – – 254,519
Motor vehicles 4,905 8,622 3,027 (1,307) – 18 15,265
Furniture, fittings and equipment 15,654 38,569 3,066 (218) (32) 803 57,842
Computer software and hardware 116,875 4,083 3,960 (457) 8,535 539 133,535
Systems work in progress 17,083 – 78,880 – (8,503) – 87,460
Trailers and prime movers 168,812 – 11,909 (101) – – 180,620
Plant and machinery 17,078 223,305 1,837 (309) – 328 242,239
Tugboats, engines and pushers – 70,769 – – – – 70,769
901,123 819,601 104,837 (31,458) – 3,497 1,797,600
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134
Notes To The Financial Statements
( c o n t i n u e d )
11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Accumulated Assets of D e p re c i a t i o n D i s p o s a l s C u r rency A c c u m u l a t e d Net book
d e p reciation at subsidiary charge for Impairment a n d translation d e p reciation at value at
1 . 4 . 2 0 0 3 a c q u i red the year losses w r i t e - o ff s d i ff e rences 31.3.2004 3 1 . 3 . 2 0 0 4
G roup - 31 March 2004 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0
Ships
At cost:
Ships in operation 6,903,710 966,368 1,073,219 1,311 (4,418 ) – 8,940,190 14,782,963
Ships under construction – – – – – – – 2,192,727
Property and equipment
At 1984 valuation:
6,903,710 966,368 1,073,219 1,311 (4,418 ) – 8,940,190 16,975,690
Freehold land – – – – – – – 22,300
Freehold buildings 10,452 – 474 – – – 10,926 12,773
At cost:
Freehold land – – – – – – – 14,459
Long leasehold land 7,622 20,170 991 – – – 28,783 138,333
Short leasehold land 3,648 – 286 – – – 3,934 6,954
Freehold buildings 15,801 1,050 2,033 – – 524 19,408 35,047
Leasehold buildings 15,867 – 1,658 – – – 17,525 54,058
Drydocks and waste plant – 101,950 – – – – 101,950 288,901
Containers 230,341 – 20,345 – (29,010) – 221,676 32,843
Motor vehicles 3,924 7,440 1,012 – (1,307 ) 5 11,074 4,191
Furniture, fittings and
equipment 12,082 28,648 1,873 – (209 ) 633 43,027 14,815
Computer software
and hardware 49,344 1,282 16,925 – (457 ) 439 67,533 66,002
Systems work in progress – – – – – – – 87,460
Trailers and prime movers 159,829 – 5,037 – (71 ) – 164,795 15,825
Plant and machinery 9,447 152,698 2,643 – (309) 286 164,765 77,474
Tugboats, engines and
pushers – 40,427 – – – – 40,427 30,342
518,357 353,665 53,277 – (31,363) 1,887 895,823 901,777

11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Assets of Disposals Currency
At subsidiary and translation At
1.4.2002 acquired Additions write-offs Transfers differences 31.3.2003
Group - 31 March 2003 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Ships
At cost:
Ships in operation 15,346,882 – 359,973 – 1,237,671 – 16,944,526
Ships under construction 1,530,804 – 1,459,588 – (1,283,904) – 1,706,488
Property and equipment
At 1984 valuation:
16,877,686 – 1,819,561 – (46,233) – 18,651,014
Freehold land 22,300 – – – – – 22,300
Freehold buildings 23,699 – – – – – 23,699
At cost:
Freehold land 11,828 – – – – 364 12,192
Long leasehold land 88,144 – 712 – – – 88,856
Short leasehold land 10,888 – – – – – 10,888
Freehold buildings 43,339 4,740 274 – – 943 49,296
Leasehold buildings 69,808 – 92 – – – 69,900
Containers 248,553 – 37,945 (2,913) – – 283,585
Motor vehicles 4,715 213 415 (462) – 24 4,905
Furniture, fittings and equipment 13,974 488 738 (87) – 541 15,654
Computer software and hardware 49,056 1,224 12,494 (429) 54,122 408 116,875
Systems work in progress 37,697 – 34,899 (1,391) (54,122) – 17,083
Trailers and prime movers 169,564 – – (752) – – 168,812
Plant and machinery 6,849 3,101 4,831 (1,750) – 4,047 17,078
800,414 9,766 92,400 (7,784) – 6,327 901,123
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136
Notes To The Financial Statements
( c o n t i n u e d )
11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
A c c u m u l a t e d Assets of D e p re c i a t i o n D i s p o s a l s C u r rency A c c u m u l a t e d Net book
d e p reciation at subsidiary charge for a n d translation d e p reciation at value at
1 . 4 . 2 0 0 2 a c q u i red the year w r i t e - o ff s Tr a n s f e r s d i ff e rences 31.3.2003 3 1 . 3 . 2 0 0 3
G roup - 31 March 2003 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0 R M’0 0 0
Ships
At cost:
Ships in operation 6,099,361 – 850,582 – (46,233 ) – 6,903,710 10,040,816
Ships under construction – – – – – – – 1,706,488
Property and equipment
At 1984 valuation:
6,099,361 – 850,582 – (46,233 ) – 6,903,710 11,747,304
Freehold land – – – – – – – 22,300
Freehold buildings 9,978 – 474 – – – 10,452 13,247
At cost:
Freehold land – – – – – – – 12,192
Long leasehold land 6,633 – 989 – – – 7,622 81,234
Short leasehold land 3,362 – 286 – – – 3,648 7,240
Freehold buildings 13,456 481 1,349 – – 515 15,801 33,495
Leasehold buildings 14,395 – 1,472 – – – 15,867 54,033
Containers 207,554 – 25,696 (2,909) – – 230,341 53,244
Motor vehicles 3,730 131 421 (358) – – 3,924 981
Furniture, fittings
and equipment 10,881 237 585 (79) – 458 12,082 3,572
Computer software
and hardware 39,313 309 9,484 (91) – 329 49,344 67,531
Systems work in progress – – – – – – – 17,083
Trailers and prime movers 152,369 – 8,137 (677) – – 159,829 8,983
Plant and machinery 5,053 874 1,238 (1,746) – 4,028 9,447 7,631
466,724 2,032 50,131 (5,860) – 5,330 518,357 382,766

11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Disposals
At and At
Corporation - 1.4.2003 Additions write-offs Transfers 31.3.2004
31 March 2004 RM’000 RM’000 RM’000 RM’000 RM’000
Ships
At cost:
Ships in operation 10,964,690 398,463 (6,352) 355,455 11,712,256
Ships under construction 280,291 952,091 – (355,455) 876,927
Property and equipment
11,244,981 1,350,554 (6,352) – 12,589,183
At 1984 valuation:
Freehold land 22,300 – – – 22,300
Freehold buildings 23,699 – – – 23,699
At cost:
Freehold land 9,553 – – – 9,553
Long leasehold land 72,213 – – – 72,213
Short leasehold land 10,888 – – – 10,888
Freehold buildings 29,193 – – – 29,193
Leasehold buildings 59,190 614 – – 59,804
Containers 283,585 – (29,065) – 254,520
Motor vehicles 2,033 2,612 (508) – 4,137
Furniture, fittings and equipment 1,928 – – 13 1,941
Computer software and hardware 83,690 3,472 – (1,911) 85,251
Systems work in progress 17,083 78,880 – (8,503) 87,460
615,355 85,578 (29,573) (10,401) 660,959
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138
Notes To The Financial Statements
( c o n t i n u e d )
11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Accumulated Depreciation Disposals Accumulated Net book
depreciation at charge for and depreciation at value at
1.4.2003 the year write-offs Transfers 31.3.2004 31.3.2004
Corporation - RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
31 March 2004
Ships
At cost:
Ships in operation 5,333,135 540,829 (4,418) – 5,869,546 5,842,710
Ships under construction – – – – – 876,927
Property and equipment
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
5,333,135 540,829 (4,418) – 5,869,546 6,719,637
At 1984 valuation:
Freehold land – – – – – 22,300
Freehold buildings 10,452 474 – – 10,926 12,773
At cost:
Freehold land – – – – – 9,553
Long leasehold land 5,983 717 – – 6,700 65,513
Short leasehold land 3,648 297 – – 3,945 6,943
Freehold buildings 11,157 456 – – 11,613 17,580
Leasehold buildings 11,641 1,188 – – 12,829 46,975
Containers 230,341 20,346 (29,008) – 221,679 32,841
Motor vehicles 1,782 631 (508) – 1,905 2,232
Furniture, fittings and equipment 1,829 35 – 12 1,876 65
Computer software and hardware 34,019 10,452 – (720) 43,751 41,500
Systems work in progress – – – – – 87,460
310,852 34,596 (29,516) (708) 315,224 345,735

11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Disposals
At and At
Corporation - 1.4.2002 Additions write-offs Transfers 31.3.2003
31 March 2003 RM’000 RM’000 RM’000 RM’000 RM’000
Ships
At cost:
Ships in operation 10,185,821 356,646 – 422,223 10,964,690
Ships under construction 1,530,804 1,459,207 – (2,709,720) 280,291
Property and equipment
11,716,625 1,815,853 – (2,287,497) 11,244,981
At 1984 valuation:
Freehold land 22,300 – – – 22,300
Freehold buildings 23,699 – – – 23,699
At cost:
Freehold land 9,553 – – – 9,553
Long leasehold land 71,501 712 – – 72,213
Short leasehold land 10,888 – – – 10,888
Freehold buildings 29,193 – – – 29,193
Leasehold buildings 59,190 – – – 59,190
Containers 248,553 37,945 (2,913) – 283,585
Motor vehicles 1,964 277 (208) – 2,033
Furniture, fittings and equipment 1,922 6 – – 1,928
Computer software and hardware 34,769 11,166 – 37,755 83,690
Systems work in progress 37,697 34,899 (1,391) (54,122) 17,083
551,229 85,005 (4,512) (16,367) 615,355
139
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140
Notes To The Financial Statements
( c o n t i n u e d )
11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Accumulated Depreciation Disposals Accumulated Net book
depreciation at charge for and depreciation at value at
1.4.2002 the year write-offs Transfers 31.3.2003 31.3.2003
Corporation - RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
31 March 2003
Ships
At cost:
Ships in operation 4,591,962 570,350 – 170,823 5,333,135 5,631,555
Ships under construction – – – – – 280,291
Property and equipment
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
4,591,962 570,350 – 170,823 5,333,135 5,911,846
At 1984 valuation:
Freehold land – – – – – 22,300
Freehold buildings 9,978 474 – – 10,452 13,247
At cost:
Freehold land – – – – – 9,553
Long leasehold land 5,255 728 – – 5,983 66,230
Short leasehold land 3,362 286 – – 3,648 7,240
Freehold buildings 10,700 457 – – 11,157 18,036
Leasehold buildings 10,460 1,181 – – 11,641 47,549
Containers 207,554 25,696 (2,909) – 230,341 53,244
Motor vehicles 1,935 55 (208) – 1,782 251
Furniture, fittings and equipment 1,783 46 – – 1,829 99
Computer software and hardware 28,444 5,575 – – 34,019 49,671
Systems work in progress – – – – – 17,083
279,471 34,498 (3,117) – 310,852 304,503

11. SHIP, PROPERTY AND EQUIPMENT (CONTINUED)
Certain properties were revalued by the directors in 1984 based on valuations carried out by a firm of professional valuers to reflect
the current market value then. Surpluses on revaluation were taken to the revaluation reserve on that date. The net book value of
revalued properties, had the assets been carried at cost less depreciation, is as follows:
Group and Corporation
2004 2003
RM’000 RM’000
Freehold land - 1984 818 818
Freehold buildings - 1984 3,340 3,486
4,158 4,304
Included in long term leasehold land of the Group is carrying value of a long term leasehold and foreshore land of a subsidiary
acquired during the year of RM58,089,000 which cannot be disposed off, charged or subleased without the prior consent of the Johor
State Government.
The long term leasehold and foreshore land were revalued in 1998 by an independent professional valuer based on an open market
value basis. The carrying amount of the long term leasehold and foreshore land that would have been included in the financial
statements had the assets been carried at cost less accumulated depreciation is RM8,230,000.
Certain ships of the Group have been pledged as security for banking facilities as set out in Note 26. The net book value of these
ships is as follows:
Group
2004 2003
RM’000 RM’000
Ships in operation 5,168,374 505,149
Borrowing costs capitalised during the financial year under ships under construction of the Group amounted to RM23,344,525 (2003:
RMNil).
141
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142
Notes To The Financial Statements
( c o n t i n u e d )
12. SUBSIDIARIES
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Corporation
2004 2003
RM’000 RM’000
Unquoted shares at cost 2,662,057 2,437,406
Loans and advances to subsidiaries 13,867 13,867
2,675,924 2,451,273
The loans and advances to subsidiaries are unsecured and interest-free and are not repayable within 12 months from the balance
sheet date.
Details of the subsidiaries are disclosed in Note 38.
(a) Acquisition of subsidiaries (Note 40)
(i) On 22 July 2003, the Corporation through its wholly-owned subsidiary, acquired 100% interest in American Eagle Tanker
Inc. Limited ("AET"); and
(ii) On 17 March 2004, the Corporation acquired an additional of 22% equity interest in MSE Holdings Sdn. Bhd. ("MSE").
As a result, MSE became a subsidiary of the Corporation.
The effects of the acquisition on the financial results of the Group from the date of acquisition to 31 March 2004 are as
follows:
AET MSE* Total
RM’000 RM’000 RM’000
Revenue 1,277,127 – 1,277,127
Operating costs (776,811) – (776,811)
Non operating costs (30,673) – (30,673)
Net profit 469,643 – 469,643
* The effect of the acquisition on the financial results of the Group from the date of acquisition to 31 March 2004 is not
material.

12. SUBSIDIARIES (CONTINUED)
The effects of the acquisition on the financial position of the Group as at 31 March 2004 are as follows:
AET MSE Total
RM’000 RM’000 RM’000
Ship, property and equipment 3,865,964 460,278 4,326,242
Investments – 15 15
Goodwill on consolidation, net 609,305 9,104 618,409
Inventories 26,559 8,884 35,443
Trade and other receivables 153,306 373,492 526,798
Provision for doubtful debts (6,216) (6,646) (12,862)
Cash and balances 403,613 79,515 483,128
Trade and other payables (121,769) (285,375) (407,144)
Amount due to holding company (1,170,072) – (1,170,072)
Deferred taxation (10,564) (46,557) (57,121)
Borrowings (1,400,414) (100,975) (1,501,389)
Minority interests – (169,173) (169,173)
Group's share of net assets 2,349,712 322,562 2,672,274
The fair values of the assets acquired and liabilities assumed from the acquisition of the subsidiaries are as follows:
AET MSE
22.7.2003 31.3.2004 Total
RM’000 RM’000 RM’000
Net assets acquired:
Ship, property and equipment 3,869,426 460,278 4,329,704
Other investments – 15 15
Inventories 47,074 8,884 55,958
Trade and other receivables, net 101,088 366,846 467,934
Cash and bank balances 80,355 79,515 159,870
Trade and other payables (123,130) (285,375) (408,505)
Amount due to holding company (1,217,331) – (1,217,331)
Deferred taxation (2,189) (46,557) (48,746)
Borrowings (1,492,230) (100,975) (1,593,205)
Fair value of total net assets 1,263,063 482,631 1,745,694
Less: Minority interest – (169,173) (169,173)
Group's share of net assets 1,263,063 313,458 1,576,521
Less: Carrying amount accounted for as associated company,
at date of acquisition – (207,363) (207,363)
Goodwill on acquisition 630,321 9,104 639,425
Total consideration 1,893,384 115,199 2,008,583
143
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

144
Notes To The Financial Statements
( c o n t i n u e d )
12. SUBSIDIARIES (CONTINUED)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
AET MSE
22.7.2003 31.3.2004 Total
RM’000 RM’000 RM’000
Satisfied by cash 1,893,384 115,199 2,008,583
Net cash outflow arising from acquisition:
Cash consideration 1,893,384 115,199 2,008,583
Cash and cash equivalents of subsidiary acquired (80,355) (79,515) (159,870)
1,813,029 35,684 1,848,713
(b) On 19 May 2003, MISC Integrated Logistics Sdn. Bhd., a wholly-owned subsidiary of the Corporation acquired from Faber
Haulage Sdn. Bhd. the remaining 25% equity interests in MISC Haulage Services Sdn. Bhd. ("MHS"). The acquisition was
completed on 19 May 2003. As a result, MHS became a wholly-owned subsidiary of the Corporation.
13. ASSOCIATED COMPANIES
Group
2004 2003
RM’000 RM’000
In Malaysia:
Unquoted shares at cost 112,620 119,711
Outside Malaysia:
Unquoted shares at cost 21,093 25,186
133,713 144,897
Share of post-acquisition (losses)/profits (22,666) 124,978
Share of other post-acquisition reserves 16,555 55,839
127,602 325,714
Represented by:
Share of net tangible assets 127,466 325,578
Share of intangible assets 136 136
127,602 325,714
Loans to associated companies 7,260 8,631
134,862 334,345
The loans to associated companies are unsecured, intere s t - f ree and are not repayable within 12 months from the balance sheet date.
Details of the associated companies are disclosed in Note 39.

14. OTHER INVESTMENTS
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
At cost:
Shares in corporations, unquoted 44,881 45,057 38,040 38,040
Less: Provision for diminution in value (1,435) (1,363) – –
43,446 43,694 38,040 38,040
Shares in corporations, quoted in Malaysia 192,808 192,808 13,409 13,409
236,254 236,502 51,449 51,449
Market value of quoted shares 210,197 160,353 18,333 12,446
15. INTANGIBLE ASSETS
Group
Reserve Other
arising on intangible
consolidation Goodwill assets Total
RM’000 RM’000 RM’000 RM’000
Net book value at 1 April 2002 – 20,097 409,154 429,251
Acquisition of a subsidiary (146) – – (146)
Additional interest in a subsidiary (88) – – (88)
Amortisation charge 28 (11,542) (28,163) (39,677)
Impairment loss in goodwill – (8,021) – (8,021)
Net book value at 1 April 2003 (206) 534 380,991 381,319
Acquisition of subsidiaries (Note 12(a)) – 639,425 – 639,425
Additional interest in a subsidiary (Note 12(b)) – 5,366 – 5,366
Amortisation charge 47 (22,093) (28,168) (50,214)
Net book value at 31 March 2004 (159) 623,232 352,823 975,896
145
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

146
Notes To The Financial Statements
( c o n t i n u e d )
16. DUE FROM GROUP COMPANIES
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade:
Due from holding company 330 104 4 –
Due from fellow subsidiaries 28,642 49,864 414 24,701
Due from subsidiaries – – 521,699 254,264
Less: Provision for doubtful debts – – (2,214) (2,214)
28,972 49,968 519,903 276,751
Non trade:
Due from fellow subsidiaries 4,566 – 4,560 –
Due from subsidiaries – – 710,936 1,996,685
4,566 – 715,496 1,996,685
33,538 49,968 1,235,399 2,273,436
The amounts due from holding company, fellow subsidiaries and subsidiaries are unsecured, interest-free and have no fixed terms of
repayment.
17. DUE FROM ASSOCIATED COMPANIES
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade 1,580 18,017 1,575 18,056
Less: Provision for doubtful debts (96) (96) (96) (96)
1,484 17,921 1,479 17,960
The amounts due from associated companies are unsecured, interest-free and have no fixed terms of repayment.

18. INVENTORIES
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
At cost:
Bunkers, lubricants and consumable stores 78,972 61,715 52,635 57,541
Spares 38,692 – 28,649 –
Raw materials 10,822 – – –
19. RECEIVABLES
128,486 61,715 81,284 57,541
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade receivables 723,814 435,657 385,499 334,684
Due from customers on contracts (Note 20) 238,485 – – –
Less: Provision for doubtful debts (67,094) (56,843) (37,517) (37,517)
895,205 378,814 347,982 297,167
Staff housing and vehicle loans 622 657 380 498
Non trade receivables 119,664 61,358 53,425 8,303
Deposits 5,484 4,859 1,409 1,531
Prepayments 76,927 32,198 20,559 28,148
202,697 99,072 75,773 38,480
Less: Provision for doubtful debts (2,369) (2,308) (2,228) (2,228)
200,328 96,764 73,545 36,252
Recoverable amount from deconsolidated subsidiaries 4,127 4,127 – –
1,099,660 479,705 421,527 333,419
The Group's normal trade credit term ranges from 14 to 60 days (2003: 14 to 60 days). Other credit terms are assessed and approved
on a case-by-case basis.
The Group has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors.
147
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

148
Notes To The Financial Statements
( c o n t i n u e d )
20. DUE FROM/(TO) CUSTOMERS ON CONTRACTS
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group
2004 2003
RM’000 RM’000
Construction contract costs incurred and recognised profits to date 1,348,062 –
Less: Progress billings (1,128,768) –
219,294 –
Due from customers on contracts (Note 19) 238,485 –
Due to customers on contracts (Note 25) (19,191) –
21. MARKETABLE SECURITIES
219,294 –
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Quoted in Malaysia:
At market value 5,432 5,106 5,432 4,695
As at year end, no marketable securities are stated at cost.
22. CASH, DEPOSITS AND BANK BALANCES
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Deposits with:
licensed banks 1,411,288 773,911 367,795 78,350
licensed finance companies 92,213 20,519 80,471 5,489
Cash and bank balances 350,085 235,222 49,604 161,872
1,853,586 1,029,652 497,870 245,711

22. CASH, DEPOSITS AND BANK BALANCES (CONTINUED)
The range of interest rates and maturities of deposits as at 31 March 2004 were as follows:
Group
Range of
Interest Rates Range of Maturities
2004 2003 2004 2003
% % Days Days
Licensed banks 2.60 - 2.80 2.60 - 2.80 1 - 30 1 - 30
Licensed finance companies 2.60 - 2.80 2.75 - 2.95 1 - 30 7 - 90
Corporation
Licensed banks 1.00 - 2.80 2.60 - 2.80 1 - 30 1 - 30
Licensed finance companies 2.60 - 2.80 2.75 - 2.95 1 - 30 7 - 90
23. DUE TO GROUP COMPANIES
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade:
Due to holding company 26,563 3,000 – –
Due to fellow subsidiaries 59,318 60,125 54,901 53,559
Due to subsidiaries – – 203,971 41,950
85,881 63,125 258,872 95,509
Non trade:
Due to holding company 16,475 38,842 24,500 24,474
Due to fellow subsidiaries 3,456 43 – –
Due to subsidiaries – – 4,451 –
19,931 38,885 28,951 24,474
105,812 102,010 287,823 119,983
The amounts due to subsidiaries, fellow subsidiaries and holding company are unsecured, interest-free and have no fixed terms of
repayment.
149
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150
Notes To The Financial Statements
( c o n t i n u e d )
24. DUE TO ASSOCIATED COMPANIES
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade 334 2,819 – 2,789
Non trade 813 233 813 –
1,147 3,052 813 2,789
The amounts due to associated companies are unsecured, interest-free and have no fixed terms of repayment.
25. PAYABLES AND ACCRUALS
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Trade payables 772,205 499,575 395,057 385,299
Due to customers on contracts (Note 20) 19,191 – – –
Non trade payables 195,244 65,689 106,980 46,576
Accruals and provisions 197,863 98,707 33,174 54,285
Provision for warranties 16,445 – – –
Due to deconsolidated subsidiaries 3,072 3,072 – –
The normal trade credit term granted to the Group ranges from 14 to 60 days (2003: 14 to 60 days).
1,204,020 667,043 535,211 486,160
The amount due to deconsolidated subsidiaries is unsecured, interest-free and repayable upon completion of the liquidation exercise.
The Group gives approximately one year warranties on certain products and undertakes to repair or replace items that fail to perform
satisfactorily. A provision has been recognised at the financial year end of expected warranty claims based on past experience of the
level of repairs and returns.

26. BORROWINGS
Short Term Borrowings
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Secured:
Term loans
- Fixed rate 275,150 92,390 – –
- Floating rate 298,280 – – –
573,430 92,390 – –
Unsecured:
Bank overdraft – 10,671 – 10,671
Term loans 4,016,340 945,838 – –
Islamic Private Debt Securities
- Al Murabahah Commercial Papers 600,000 1,100,000 600,000 1,100,000
Long Term Borrowings
4,616,340 2,056,509 600,000 1,110,671
5,189,770 2,148,899 600,000 1,110,671
Secured:
Term loans
- Fixed rate 2,081,446 297,179 – –
- Floating rate 1,102,134 – – –
3,183,580 297,179 – –
Unsecured:
Term loans 560,094 1,375,822 – –
Islamic Private Debt Securities
- Al Murabahah Medium Term Notes 400,000 400,000 400,000 400,000
960,094 1,775,822 400,000 400,000
7.5% Non-convertible Cumulative Redeemable
Preference Shares ("NCRPS") of USD1.00 each 22,807 22,807 – –
4,166,481 2,095,808 400,000 400,000
151
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

152
Notes To The Financial Statements
( c o n t i n u e d )
26. BORROWINGS (CONTINUED)
Total Borrowings
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Bank overdraft – 10,671 – 10,671
Term loans 8,333,444 2,711,229 – –
Islamic Private Debt Securities
- Al Murabahah Commercial Papers 600,000 1,100,000 600,000 1,100,000
- Al Murabahah Medium Term Notes 400,000 400,000 400,000 400,000
9,333,444 4,221,900 1,000,000 1,510,671
NCRPS 22,807 22,807 – –
Maturity of borrowings
Bank overdraft
9,356,251 4,244,707 1,000,000 1,510,671
Within one year – 10,671 – 10,671
Term loans
Within one year 4,589,770 1,038,228 – –
More than one and less than two years 794,876 888,229 – –
More than two and less than five years 1,689,963 752,382 – –
Five years or more 1,258,835 32,390 – –
Islamic Private Debt Securities
8,333,444 2,711,229 – –
Within one year 600,000 1,100,000 600,000 1,100,000
More than one and less than two years 400,000 – 400,000 –
More than two and less than five years – 400,000 – 400,000
NCRPS
1,000,000 1,500,000 1,000,000 1,500,000
No fixed maturity 22,807 22,807 – –
9,356,251 4,244,707 1,000,000 1,510,671

26. BORROWINGS (CONTINUED)
Term Loans
The secured term loans of the Group comprise:
Group
2004 2003
USD’000 USD’000
US Dollar Term Loans 605,851 102,518
US Dollar Term Loans on acquisition of a subsidiary 368,530 –
974,381 102,518
The USD term loans are secured by mortgages over certain ships, together with assignments of earnings, charter agreements and
insurance of the relevant ships. The carrying value of the ships pledged is stated in Note 11. These secured term loans bear interest
at rates ranging from 6.8% to 7.4% (2003: 6.8% to 7.4%) per annum and are repayable at their various dates from 1994 to 2017
(2003: 1994 to 2007).
The unsecured term loans of the Group comprise:
Group
2004 2003
USD’000 USD’000
US Dollar Term Loans 1,203,058 610,963
On 16 July 2003, a wholly-owned subsidiary of the Corporation, AET Holdings (L) Pte. Ltd. obtained unsecured short term borrowings
amounting to USD830 million from a consortium of financial institutions and licensed banks pursuant to a Bridge Facility Agreement.
The borrowings are guaranteed by the Corporation, bear an interest rate of LIBOR+0.20% per annum and repayable in full on 14 July
2004. The Corporation has embarked on a fund raising exercise to replace this Facility.
The remaining unsecured term loans bear interest at rates ranging from 1.2% to 1.5% (2003: 1.6% to 2.4%) per annum and are
repayable at their various dates from 1994 to 2007.
153
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154
Notes To The Financial Statements
( c o n t i n u e d )
26. BORROWINGS (CONTINUED)
Islamic Private Debt Securities
During the financial year ended 31 March 2004, the Corporation repaid Al-Murabahah Commercial Papers of RM1,100 million and
issued new Al-Murabahah Commercial Papers of RM600 million.
The amount, maturity date and yield as at issuance dates of the Islamic Private Debt Securities of the Group and the Corporation are
as follows:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group and Corporation
Amount
2004 2003
RM’000 RM’000
Issue No. 1 400,000 400,000
Issue No. 4 – 500,000
Issue No. 5 – 300,000
Issue No. 6 – 300,000
Issue No. 18 400,000 –
Issue No. 19 200,000 –
1,000,000 1,500,000
Maturity date Yield at issuance date
2004 2003 2004 2003
% %
Issue No. 1 11.7.2005 11.7.2005 5.31 5.31
Issue No. 4 – 10.4.2003 – 2.91
Issue No. 5 – 27.4.2003 – 2.92
Issue No. 6 – 30.4.2003 – 2.92
Issue No. 18 12.5.2004 – 2.86 –
Issue No. 19 24.6.2004 – 2.85 –
Preference Shares
The 7.5% NCRPS of USD1.00 each issued to minority shareholders of certain subsidiaries shall confer the holders the following rights
and privileges:
(a) The right to receive out of net profit for the year of the subsidiaries a cumulative preferential dividend on each preferential
dividend share at a net of 7.5% per annum;
(b) The NCRPS shall rank pari passu with the ordinary shares in all respects except that the NCRPS shall rank in priority with regard
to dividend payment of the subsidiaries;
(c) The NCRPS shall not entitle its holder thereof to participate in the profits or surplus assets of the subsidiaries;
(d) The NCRPS shall not be converted to ordinary shares of the subsidiaries; and
(e) The NCRPS shall be redeemed at any time at par together with a sum equal to arrears of the preferential dividend thereon after
a period of ten years from the date of issue on 1 July 1997 extendable for a period of five years subject to the approval of the
preference shareholders.

27. SHARE CAPITAL
Number of Ordinary
Shares of RM1 each Amount
2004 2003 2004 2003
’000 ’000 RM ’000 RM’000
Authorised*:
At 1 April/31 March 2,500,000 2,500,000 2,500,000 2,500,000
Issued and fully paid*:
At 1 April/31 March 1,859,914 1,859,914 1,859,914 1,859,914
* Included in the authorised and issued and fully paid share capital is one preference share of RM1 (2003: RM1). The preference
shareholder is not entitled to any dividend nor to participate in the capital distribution upon dissolution of the Corporation but shall
rank for repayment in priority to all other shares. Other rights and restrictions attached to the preference share are set out in Article
3B of the Corporation’s Articles of Association.
28. OTHER RESERVES
Non-distributable
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Revaluation reserve 35,272 38,921 35,217 38,921
Capital reserve arising from bonus issues in subsidiaries 1,185 1,185 – –
Other capital reserve 41,618 41,733 – –
Statutory reserves 18,123 16,691 – –
Currency translation differences 3,795 (1,728) – –
99,993 96,802 35,217 38,921
155
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156
Notes To The Financial Statements
( c o n t i n u e d )
28. OTHER RESERVES (CONTINUED)
The movement in each category of reserve were as follows:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Revaluation Reserve
At 1 April 2003/2002 38,921 38,921 38,921 38,921
Deferred tax liabilities recognised (Note 29) (3,649) – (3,704) –
At 31 March 2004/2003 35,272 38,921 35,217 38,921
Capital Reserve Arising From Bonus Issues in Subsidiaries
At 31 March 2004/2003 1,185 1,185 – –
Other Capital Reserve
At 1 April 2003/2002 41,733 42,088 – –
Transfer to retained earnings (115) (350) – –
Exchange differences – (5) – –
At 31 March 2004/2003 41,618 41,733 – –
Statutory Reserves
At 1 April 2003/2002 16,691 10,839 – –
Transfer from retained earnings 1,432 5,852 – –
At 31 March 2004/2003 18,123 16,691 – –
Currency Translation Differences
At 1 April 2003/2002 (1,728) (6,117) – –
Arising in the year 5,523 4,389 – –
At 31 March 2004/2003 3,795 (1,728) – –
99,993 96,802 35,217 38,921

28. OTHER RESERVES (CONTINUED)
The nature and purpose of each category of reserve are as follows:
(a) Revaluation Reserve
The revaluation reserve represents surplus arising from the revaluation of certain freehold land and buildings of the Corporation
in 1984.
(b) Other Capital Reserve
Other capital reserve represents the Group’s share of its associated companies’ reserve.
(c) Statutory Reserves
The statutory reserves are maintained by a merchant bank in compliance with Section 36 of the Banking and Financial
Institutions Act, 1989 and by overseas companies in accordance with the laws of the respective countries.
(d) Currency Translation Differences Reserve
The currency translation differences reserve comprises all foreign exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
29. DEFERRED TAXATION
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
At 1 April 2003 14,925 14,503 – –
Recognised in the income statement (Note 8)
- In Malaysia (3,163) 531 – –
- Outside Malaysia (86) (109) – –
Charged to equity (Note 28) 3,649 – 3,704 –
Acquisition of subsidiaries 57,121 – – –
At 31 March 2004 72,446 14,925 3,704 –
Presented after appropriate offsetting as follows:
Deferred tax assets (8,849) – – –
Deferred tax liabilities 81,295 14,925 3,704 –
72,446 14,925 3,704 –
157
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

158
Notes To The Financial Statements
( c o n t i n u e d )
29. DEFERRED TAXATION (CONTINUED)
The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:
Deferred Tax Liabilities of the Group:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Accelerated
Capital Revaluation
Allowances of Land Others Total
RM’000 RM’000 RM’000 RM’000
At 1 April 2003 18,642 – – 18,642
Recognised in the income statement (Note 8)
- In Malaysia (1,047) – – (1,047)
- Outside Malaysia – – (23) (23)
Charged to equity – 3,649 – 3,649
Acquisition of subsidiaries 63,190 – 2,217 65,407
At 31 March 2004 80,785 3,649 2,194 86,628
Deferred Tax Assets of the Group:
Tax Losses
and
Unabsorbed
Other Capital
Payables Allowances Others Total
RM’000 RM’000 RM’000 RM’000
At 1 April 2003 (703) (2,729) (285) (3,717)
Recognised in the income statement
- In Malaysia (98) (2,178) 160 (2,116)
- Outside Malaysia (38) (25) – (63)
Acquisition of subsidiaries (8,286) – – (8,286)
At 31 March 2004 (9,125) (4,932) (125) (14,182)
Deferred Tax Liabilities of the Company:
Revaluation
of properties
RM’000
At 1 April 2003 –
Charged to equity (Note 28) 3,704
At 31 March 2004 3,704

29. DEFERRED TAXATION (CONTINUED)
Deferred tax assets have not been recognised in respect of the following items:
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Unused tax losses 1,019,536 943,667 968,876 904,650
Unabsorbed capital allowances 25,166 19,448 12,030 14,325
1,044,702 963,115 980,906 918,975
The unused tax losses of the Corporation relate to the loss making non-resident ships and can only be utilised to offset against future
taxable profits of the same ship.
Deferred tax assets have not been recognised for certain subsidiaries as these subsidiaries have a recent history of losses.
30. CASH FLOW FROM INVESTING ACTIVITIES
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Purchase of ship, property and equipment (2,545,924) (1,911,961) (1,436,132) (1,900,858)
Acquisitions of subsidiaries, net (Note 12(a)) (1,848,713) 2,218 (115,199) –
Purchase of additional shares in a subsidiary (Note 12(b)) (19,500) (1,500) – (1,500)
Investment in subsidiaries – – – (2,023)
Subsidiaries deconsolidated, net – (71) – –
Investment in quoted shares – (8,435) – (8,435)
Repayment of loans by subsidiaries – – – 3,071
Dividends received from
- Quoted investments 8,136 5,179 865 848
- Unquoted investments 414 322 420,759 874,931
Dividends received from associated companies 11,307 24,708 – –
Proceeds from disposal of ship, property and equipment 3,951 945 3,696 283
Purchase of marketable securities – (40) – (40)
Proceeds from disposal of marketable securities 1,315 826 680 620
Proceeds from disposal of an associated company 930 – – –
Investment in unquoted shares – (778) – –
Interest received 20,414 37,417 5,758 13,753
Net cash used in investing activities (4,367,670) (1,851,170) (1,119,573) (1,019,350)
159
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160
Notes To The Financial Statements
( c o n t i n u e d )
31. CASH FLOW FROM FINANCING ACTIVITIES
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Drawdown of bridging loan 3,154,000 – – –
Drawdown of term loans 2,220,143 – – –
Drawdown of Islamic Private Debt Securities 600,000 1,100,000 600,000 1,100,000
Repayment of term loans (1,345,129) (1,095,954) – (63,333)
Repayment of Islamic Private Debt Securities (1,100,000) (405,000) (1,100,000) (405,000)
Dividends paid to shareholders of Corporation (557,974) (557,974) (557,974) (557,974)
Dividends paid to minority shareholders of subsidiaries (8,561) (8,977) – –
Interest paid (212,423) (180,393) (35,519) (42,363)
Net cash generated from/ (used in) financing activities 2,750,056 (1,148,298) (1,093,493) 31,330
32. SIGNIFICANT RELATED PARTY TRANSACTIONS
In addition to related party disclosures elsewhere in the financial statements, set out below are other significant related party
transactions and balances. The directors are of the opinion that the transactions below have been entered into in the normal course
of business and have been established on terms and conditions that are not materially different from that obtainable in transactions
with unrelated parties, unless otherwise stated.
(a) Provision of shipping and shipping related services
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Charter hire revenue
- Holding company 132,315 81,289 132,315 81,289
- Fellow subsidiaries
Malaysia LNG Sdn. Bhd. 2,576,852 2,323,081 915,249 1,020,368
Petronas Trading Corporation Sdn. Bhd. 106,631 90,608 106,631 90,608
Forwarding charges
- Fellow subsidiary
Malaysia International Trading Corporation (Japan) Sdn. Bhd. 3,284 19,032 – –
Warehouse services
- Fellow subsidiary
Vinyl Chloride (Malaysia) Sdn. Bhd. 2,375 7,737 – –

32. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED)
(b) Purchases of goods and services
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Purchases of bunkers, lubricants and spare parts
- Fellow subsidiaries
Petronas Dagangan Berhad 59,693 61,029 59,397 45,322
Petronas Trading Corporation Sdn. Bhd. 287,098 335,869 287,098 329,819
Malaysia International Trading Corporation (Japan) Sdn. Bhd. 295,426 128,043 295,426 124,683
Purchases of services for repairs, conversion
of vessels and dry docking
- Associated company
Malaysia Shipyard & Engineering Sdn. Bhd. 225,927 59,176 225,927 48,499
Purchase of crew services
- Shareholder of subsidiaries
Nippon Yusen Kaisha 11,643 13,593 – –
Net transfer of ship, property and equipment to
- Subsidiaries – – (9,693) (2,133,041)
Purchase of information technology services
- Holding company 14,597 19,646 14,046 19,346
Management fee
- Shareholder of subsidiaries
Nippon Yusen Kaisha 2,285 3,937 – –
The transfer of ship, property and equipment to the subsidiaries are at their respective net book values.
MSE became a subsidiary of the Corporation as at the year end, and accordingly, the transactions during the financial year have not
been eliminated.
161
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162
Notes To The Financial Statements
( c o n t i n u e d )
33. COMMITMENTS
Outstanding commitments in respect of capital expenditure at balance sheet date not provided for in the financial statements are as
follows:
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Capital expenditure for ship, property and equipment:
Authorised and contracted for 4,527,972 1,695,895 3,750,179 469,989
Authorised but not contracted for 1,709,468 5,697,618 42,930 5,688,371
6,237,440 7,393,513 3,793,109 6,158,360
Commitments for information technology projects:
Authorised and contracted for 37,085 112,633 37,085 112,633
Authorised but not contracted for – 1,816 – 1,816
37,085 114,449 37,085 114,449
Commitments for equity investment:
Authorised but not contracted for 3,500 – 3,500 –
6,278,025 7,507,962 3,833,694 6,272,809
Commitments under non-cancellable operating lease:
Within one year 109,452 22,758 8,147 21,945
Between one and two years 76,842 9,157 5,173 8,764
Between two and five years 61,669 1,157 10,147 834
247,963 33,072 23,467 31,543

34. CONTINGENT LIABILITIES
Unsecured
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Letters of guarantee issued in respect of banking facilities
extended to third party agents 16,349 11,171 13,370 8,192
Indemnity provided in respect of banking facilities
extended to subsidiaries – – 6,308,026 60,018
35. SEGMENT INFORMATION
(a) Business Segments:
The Group is organised on a worldwide basis into four major business segments:
16,349 11,171 6,321,396 68,210
(i) Shipping - the provision of liquefied natural gas ("LNG") services, petroleum tanker services, chemical tanker services and
dry bulk carrier services;
(ii) Integrated liner logistics - comprises liner services, haulage, trucking and warehousing and agency businesses;
(iii) Shipbuilding and repairing and heavy engineering works; and
(iv) Non-shipping - includes fleet management services, marine education and training and other diversified businesses.
The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business and
have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated
parties.
163
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164
Notes To The Financial Statements
( c o n t i n u e d )
35. SEGMENT INFORMATION (CONTINUED)
(a) Business Segments: (continued)
S h i p b u i l d i n g
and Repairing
I n t e g r a t e d and Heavy
L i n e r E n g i n e e r i n g N o n -
S h i p p i n g L o g i s t i c s Wo r k s S h i p p i n g To t a l E l i m i n a t i o n s C o n s o l i d a t e d
2 0 0 4 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0
REVENUE AND EXPENSES
Revenue 5,191,061 2,415,210 – 51,029 7,657,300 (51,029) 7,606,271
Result
Segment results 2,492,986 37,227 – 72,796 2,603,009 (157,283) 2,445,726
Other operating income 72,806 6,631 – 446,226 525,663 (461,969) 63,694
Profit from operations 2,565,792 43,858 – 519,022 3,128,672 (619,252) 2,509,420
Finance costs (unallocated) (210,493)
Share of results of associated
companies 3,990 1,371 15,607 6,509 27,477 27,477
Profit before taxation 2,326,404
Taxation (7,127)
Profit after taxation 2,319,277
Minority interests (29,706)
Net profit for the year 2,289,571
ASSETS AND LIABILITIES
Segment assets 18,872,887 920,485 912,329 1,514,951 22,220,652 22,220,652
Investment in equity method
of associated companies – 1,148 – 133,714 134,862 134,862
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
22,355,514
Segment liabilities 6,615,284 527,662 430,461 3,179,069 10,752,476 10,752,476
OTHER INFORMATION
Capital expenditure 6,324,799 88,350 460,278 2,195 6,875,622 6,875,622
Depreciation 994,661 126,594 – 5,241 1,126,496 1,126,496
Impairment losses 1,311 – – – 1,311 1,311
Non-cash expenses other than
depreciation and impairment
losses 54,815 2,504 – 5 57,324 57,324

35. SEGMENT INFORMATION (CONTINUED)
(a) Business Segments: (continued)
I n t e g r a t e d
L i n e r N o n -
S h i p p i n g L o g i s t i c s S h i p p i n g To t a l E l i m i n a t i o n s C o n s o l i d a t e d
2 0 0 3 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0 R M ’ 0 0 0
REVENUE AND EXPENSES
Revenue 3,560,643 1,872,353 61,628 5,494,624 (61,628) 5,432,996
Result
Segment results 1,671,137 (277,533) 56,334 1,449,938 (71,169) 1,378,769
Other operating income 87,695 6,978 875,275 969,948 (909,199) 60,749
Profit/(loss) from operations 1,758,832 (270,555) 931,609 2,419,886 (980,368) 1,439,518
Finance costs (unallocated) (169,581)
Share of results of associated companies – (187) 40,550 40,363 40,363
Profit before taxation 1,310,300
Taxation 3,507
Profit after taxation 1,313,807
Minority interests (3,144)
Net profit for the year 1,310,663
ASSETS AND LIABILITIES
Segment assets 11,982,847 2,159,952 249,159 14,391,958 14,391,958
Investment in equity method of
associated companies – 28,758 305,587 334,345 334,345
14,726,303
Segment liabilities 4,604,348 413,028 15,559 5,032,935 5,032,935
OTHER INFORMATION
Capital expenditure 1,865,777 42,215 11,703 1,919,695 1,919,695
Depreciation 747,140 152,215 1,358 900,713 900,713
Non-cash expenses other than
depreciation and impairment losses 56,990 7,462 253 64,705 64,705
165
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

166
Notes To The Financial Statements
( c o n t i n u e d )
35. SEGMENT INFORMATION (CONTINUED)
(b) Geographical Segments:
Although the Group's four major business segments are managed on a worldwide basis, they operate in five principal
geographical areas of the world. In Malaysia, its home country, the Group's areas of operation are principally shipping, integrated
liner logistics and non-shipping.
The Group also operates shipping and integrated liner logistics in other regions in the world as follows:
- Asia and Africa
- Europe
- Australasia
- The United States of America, arising from acquisition of AET group
The United
Asia and States of
2004 Africa Malaysia Europe Australasia America C o n s o l i d a t e d
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Total revenue from external customers 1,714,187 2,807,658 1,255,343 551,956 1,277,127 7,606,271
Segment assets 2,035,710 14,023,372 810,910 457,558 5,027,964 22,355,514
Capital expenditure 712,097 2,053,199 63,148 193 4,046,985 6,875,622
2003
Total revenue from external customers 1,572,143 2,507,268 940,044 413,541 – 5,432,996
Segment assets 4,242,587 9,191,179 820,818 471,719 – 14,726,303
Capital expenditure 34,218 1,857,036 17,134 11,307 – 1,919,695
36. RETIREMENT BENEFITS
A subsidiary of the Group, PETRONAS Tankers Sendirian Berhad ("PTSB") contributes monthly to the PETRONAS Retirement Benefit
Fund ("the Fund") based on eligible employees’ monthly salary, less statutory contribution, to finance the retirement benefits payable
to eligible employees in accordance with the group retirement scheme of the ultimate holding company.
The assets of the Fund are held separately for the Group by the Trustees and the liability of the Fund is determined by the accrued
benefit calculated based on Projected Service Liability for eligible employees. The monthly maximum tax allowable contribution is paid
to the Fund by the Group. The excess is paid by the Group to a special account in PETRONAS as a provision for retirement benefits.
An actuarial valuation of the Fund is conducted by a qualified independent actuary at least once in every three years. The last valuation
performed for the Fund was on 31 March 2004. This valuation showed that the fair value of the Fund assets is sufficient to meet the
actuarially determined value of vested benefits.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

37. FINANCIAL INSTRUMENTS
(a) Financial Risk Management Objectives and Policies
The Group is exposed to various risks that are particular to its core business of logistics and maritime. Finance risk can also arise
as a consequence of the Group conducting its core businesses that entail financing and/or investment needs.
The Group adopts an effective and progressive corporate risk management system to identify, analyse, appraise and monitor the
risks facing the Group and to take specific measures to mitigate these risks. The risks can be broadly classified under
credit/counterparty risk, interest rate risk, foreign exchange risk and liquidity risk.
(i) Credit/Counterparty Risk
The credit policy of the Group requires all credit exposures to be measured, monitored and managed proactively. Exposure
to credit risk is monitored on an ongoing basis by the Credit Control Committee which is represented by the business units
and subsidiaries in the Group. Credit evaluations are performed on customers requiring credit.
(ii) Interest Rate Risk
The Group's interest rate risks arise from the volatility of the benchmark interest rates both in Ringgit and US Dollar (which
are its main borrowing currencies). The Group generally does not take any speculative view on the movement in interest rate
and therefore does not actively use interest rate derivative instruments to hedge its exposures. By maintaining a balanced
portfolio of floating and fixed interest rate debts in both local and foreign currencies, the risk arising from potential
fluctuations in interest rates is mitigated.
While the Group does not actively hedge its interest rate risk, the Group has existing interest rate swap contracts arising
from its acquisition of a subsidiary in 1998. The interest rate swap contracts convert a portion of its floating interest rate
obligations to fixed interest rate obligations.
(iii) Foreign Exchange Risk
The Group's foreign exchange risks comprise transaction risk which arises from day-to-day requirements to pay and to
receive in currencies other than the local currency; foreign exchange exposures arising from debt repayment obligations
which are denominated in currency other than the local currency; and structural foreign currency translation exposures
arising from investments in foreign subsidiaries and associated companies which are denominated in the currencies where
they are domiciled.
The Group does not actively use foreign exchange derivative instrument as a means to hedge its transaction risk. The risk
is, by and large, naturally hedged through matching, as far as possible, receipts and payments in each individual currency.
The Group also borrows in foreign currency (mainly US Dollar) to meet its investment requirements that generate income in
the same currency. The pegging of Ringgit to US Dollar by the Central Bank further reduces the transaction risks as far as
conversion needs between the two currencies are concerned.
167
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168
Notes To The Financial Statements
( c o n t i n u e d )
37. FINANCIAL INSTRUMENTS (CONTINUED)
(a) Financial Risk Management Objectives and Policies (continued)
(iii) Foreign Exchange Risk (continued)
The major foreign currency financial assets and liabilities of the Group and the Corporation denominated in their functional
currencies are as follows:
Cash and bank balances
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
United States Dollar 829,911 83,685 35,001 72,188
Sterling Pound 13,413 13,709 1,419 3,819
Australian Dollar 22,979 21,055 9,310 3,950
EURO 6,428 5,784 3,520 2,963
Receivables
United States Dollar 238,224 80,036 67,299 45,897
Sterling Pound 14,515 10,185 285 169
Australian Dollar 11,174 5,456 2,897 1,443
EURO 28,246 16,307 9,183 3,311
Payables
United States Dollar 476,305 39,810 264,572 34,887
Sterling Pound 17,369 12,889 552 420
Australian Dollar 13,013 9,471 2,844 1,288
EURO 15,844 4,971 8,071 2,983
(iv) Liquidity Risk
As at 31 March 2004, the Group had at its disposal cash and short term deposits amounting to RM1.9 billion. A long term
committed financing facility of USD820 million has been arranged with Japan Bank for International Cooperation to finance
the progress payments for contracted capital commitments for 6 LNG vessels and as cash reimbursement for prior
payments initially made using the Group's internal funds. In addition, the Group has Ringgit credit facility which can be
redrawn until June 2005 amounting to RM1.5 billion.
The Group's holdings of cash and short term deposits, together with committed funding facilities and net cash flow from
operations, are expected to be sufficient to cover its cash flow needs (excluding merger and acquisition activities) in the
next financial year. Any shortfall and additional cash requirements arising from the Group's merger and acquisition activities
can be met by additional financing. The Group's strong balance sheet provides it with financial flexibility in determining the
optimum financing source. The various options, among others, include bank borrowings, bond issuance and structured
financing.
(v) Forward Foreign Currency Contracts
T h e re are no open and outstanding forward foreign currency contracts entered into by the Group at the balance sheet date.

37. FINANCIAL INSTRUMENTS (CONTINUED)
(b) Fair Values
(i) Methods and Assumptions
The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:
Cash and Cash Equivalents, Trade and Other Receivables/Payables, Due to/from Group Companies and Associated
Companies (trade), and Short Term Borrowings
The carrying amounts approximate fair values due to the relatively short term nature of these financial instruments.
Marketable Securities
The fair value of quoted shares is determined by reference to stock exchange quoted market bid prices at the close of the
business on the balance sheet date.
Borrowings
The fair value of borrowings is estimated using discounted cash flow, based on current incremental lending rates for similar
types of lending and borrowing arrangements.
Derivative Financial Instruments
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.
Other Financial Assets and Liabilities
The fair value of all other financial assets and liabilities is deemed to be equal to their carrying value unless stated otherwise
in the relevant notes to the financial statements.
(ii) Recognised Financial Instruments
The USD floating rate loan approximates the fair value determined using discounted cash flow, based on current interest
rates for similar types of borrowing arrangements.
The aggregate net fair values of financial assets and liabilities which are not carried at fair value on the balance sheet of the
Group and of the Corporation as at 31 March 2004 are represented in the following table:
Financial Assets
Group Corporation
Carrying Carrying
Note Amount Fair Value Amount Fair Value
RM’000 RM’000 RM’000 RM’000
At 31 March 2004:
Non-current quoted shares 14 192,808 210,197 13,409 18,333
Non-current unquoted shares 14 44,881 * 38,040 *
At 31 March 2003:
Non-current quoted shares 14 192,808 160,353 13,409 12,446
Non-current unquoted shares 14 45,057 * 38,040 *
169
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170
Notes To The Financial Statements
( c o n t i n u e d )
37. FINANCIAL INSTRUMENTS (CONTINUED)
(b) Fair Values (continued)
(ii) Recognised Financial Instruments (continued)
Financial Liabilities
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Group Corporation
Carrying Carrying
Note Amount Fair Value Amount Fair Value
RM’000 RM’000 RM’000 RM’000
At 31 March 2004:
Secured:
- USD term loans 26 2,036,407 2,018,691 – –
- RM term loans 26 45,039 47,121 – –
U n s e c u red RM Islamic Private Debt Securities 26 400,000 408,400 400,000 408,400
At 31 March 2003:
Secured:
- USD term loans 26 297,179 265,254 – –
U n s e c u red RM Islamic Private Debt Securities 26 400,000 414,000 400,000 414,000
* The fair value of non-current unquoted shares is not disclosed as it is not practicable to determine the fair value with
sufficient reliability.
(iii) Unrecognised Financial Instruments
EBC Limited, a subsidiary that was acquired in 1998 has interest rate swap contracts to convert a portion of its floating rate
interest obligations to fixed rate obligations. Under these interest rate swap contracts, the subsidiary concerned agreed with
the counterparties to receive interest at floating rates and to pay interest at a fixed rate of 7.0% per annum, calculated on
the notional principal of USD130,000,000 (RM494,000,000). The average floating interest rate on these contracts during the
year was 1.17% (2003: 1.4%) per annum. These interest rate swap agreements expire in year 2005. The interest rate swap
contracts are secured by a counter-guarantee from certain subsidiaries of EBC Limited and mortgaged on the ships of these
subsidiaries.
The estimated fair value of the interest rate swap contracts as at 31 March 2004 was USD9,854,000 (RM37,446,000) (2003:
USD15,794,000 (RM60,018,000)) and represents the amount the Group would have to pay to terminate the contracts.

38. SUBSIDIARIES AND ACTIVITIES
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
PETRONAS Tankers Sendirian Berhad Malaysia 100 100 Investment holding and
provision of management
services
Puteri Intan Sdn. Bhd. Malaysia 100 100 Shipping
Puteri Delima Sdn. Bhd. Malaysia 100 100 Shipping
Puteri Nilam Sdn. Bhd. Malaysia 100 100 Shipping
Puteri Zamrud Sdn. Bhd. Malaysia 100 100 Shipping
Puteri Firus Sdn. Bhd. Malaysia 100 100 Shipping
EBC Limited British Virgin Islands 100 100 Investment holding
MISC Ship Management Sdn. Bhd. Malaysia 100 100 Dormant
Sea Maestro Shipping Limited Liberia 100 100 Dormant
Gangga Nagara Shipping Limited Liberia 100 100 Dormant
EBC Assets Limited Liberia 100 100 Investment holding
Peddler Shipping Limited Liberia 100 100 Shipping
Dinosaur Shipping Limited Liberia 100 100 Shipping
Skystrong Shipping Limited Liberia 100 100 Shipping
Rhinestone Shipping Limited Liberia 100 100 Shipping
EBC Assets Limited Bermuda 100 100 Investment holding
Thunder Bay Investment Limited Liberia 100 100 Dormant
Pacific Trident Limited Hong Kong 100 100 Dormant
Mun Kim Limited Liberia 100 100 Investment holding
171
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172
Notes To The Financial Statements
( c o n t i n u e d )
38. SUBSIDIARIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
EBC Holdings Limited Liberia 100 100 Investment holding
EBC Shipping Limited Liberia 100 100 Dormant
EBC Shipping Limited Bermuda 100 100 Dormant
Pacific Mattsu Shipping Limited Liberia 100 100 Dormant
Logger Shipping Limited Liberia 100 100 Shipping
Marquisa Shipping Limited Liberia 100 100 Dormant
Bison Shipping Limited Liberia 100 100 Shipping
Selesa Shipping Limited Liberia 100 100 Shipping
Safety Shipping Limited Liberia 100 100 Shipping
Plate Shipping Limited Liberia 100 100 Shipping
Spectrum Shipping Limited Liberia 100 100 Shipping
Happy Venture Limited Liberia 100 100 Investment holding
Grand Way Investment Limited Liberia 100 100 Dormant
Trailblazer Investment Limited Liberia 100 100 Shipping
Gunner Shipping Limited Liberia 100 100 Dormant
Growth Shipping Limited Liberia 100 100 Shipping
Fantasy Shipping Limited Liberia 100 100 Shipping
Esperance Shipping Limited Liberia 100 100 Shipping
Fragrant Shipping Limited Liberia 100 100 Dormant
Sea Maiden Shipping Limited Liberia 100 100 Dormant
Sun Shipping Limited Liberia 100 100 Shipping
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

38. SUBSIDIARIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Humanity Shipping Limited Liberia 100 100 Dormant
Torrent Shipping Limited Liberia 100 100 Dormant
Luminous Shipping Limited Liberia 100 100 Dormant
Roseland Shipping Limited Liberia 97 97 Dormant
MISC Enterprises Holdings Sdn. Bhd. Malaysia 100 100 Investment holding
MISC Agencies Sdn. Bhd. Malaysia 100 100 Shipping agent and
w a re h o u s i n g
MISC Agencies (Terengganu) Sdn. Bhd. ^ Malaysia – 100 In liquidation
MISA (B) Sdn. Bhd. * Brunei Darussalam 100 100 Shipping agent
MISC Agencies (Sarawak) Sdn. Bhd. Malaysia 65 65 Shipping agent
MISC Properties Sdn. Bhd. Malaysia 100 100 Dormant
MISC Information Technology Sdn. Bhd. ^ Malaysia – 100 In liquidation
MISC Agencies (Netherlands) B.V. * Netherlands 100 100 Shipping agent
Scheepvaartagentuur Nederland Netherlands 100 100 Dormant
Oversee B.V. *
MISC Agencies (Australia) Pty. Ltd. * Australia 100 100 Shipping agent
Malaysia International Shipping United Kingdom 100 100 Shipping agent
Corporation Agencies (U.K.) Ltd. *
MISC (Japan) Ltd. * Japan 100 100 Port and general agent
MISC Ferry Services Sdn. Bhd. Malaysia 100 100 Dormant
MISC (Singapore) Private Limited Singapore 100 100 Shipping agent
(formerly known as Leo Shipping
Private Limited)*
173
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

174
Notes To The Financial Statements
( c o n t i n u e d )
38. SUBSIDIARIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Leo Launches Private Limited * Singapore 51 51 Launch operator
MISC Integrated Logistics Sdn. Bhd. Malaysia 100 100 Integrated logistics services
MISC Trucking and Warehousing Malaysia 100 100 Trucking, warehousing and
Services Sdn. Bhd. forwarding services
MISC Haulage Services Sdn. Bhd. Malaysia 100 75 Container haulage
Asia LNG Transport Sdn. Bhd. Malaysia 51 51 Shipowning and ship
management
Asia LNG Transport Dua Sdn. Bhd. Malaysia 51 51 Shipowning and ship
management
Malaysian Maritime Academy Sdn. Bhd. Malaysia 70 70 Education and training for
seamen and maritime
personnel
Puteri Intan Satu (L) Private Limited Malaysia 100 100 Shipping
Puteri Delima Satu (L) Private Limited Malaysia 100 100 Shipping
Puteri Nilam Satu (L) Private Limited Malaysia 100 100 Shipping
Puteri Zamrud Satu (L) Private Limited Malaysia 100 100 Shipping
Puteri Firus Satu (L) Private Limited Malaysia 100 100 Shipping
Puteri Intan Dua (L) Private Limited Malaysia 100 100 Shipping
MSE Holdings Sdn. Bhd.* Malaysia 65 43 Investment holding
Malaysia Shipyard and Engineering Malaysia 65 43 Shipbuilding, ship repairing
Sdn. Bhd.* and engineering works
Malaysia Towage and Transport Malaysia 65 43 Hiring and chartering of
Sdn. Bhd.* tugboat and pushers
MSE Corporation Sdn. Bhd.* Malaysia 65 43 Processing of copper grit
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

38. SUBSIDIARIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Techno Indah Sdn. Bhd.* Malaysia 65 26 Sludge disposal management
MSE-ATB Sdn. Bhd.* Malaysia 58 38 Process equipment for
petrochemical, oil and gas
and power generation plants
Malaysia Tank Cleaning Company Malaysia 65 43 Dormant
Sdn. Bhd.*
AET Holdings (L) Pte. Ltd. Malaysia 100 – Investment holding
American Eagle Tankers Inc. Limited* Bermuda 100 – Investment holding and marine
transportation services
American Marine & Offshore Services Cayman Islands 100 – Shipping agent and lightering
Limited *
American Eagle Tankers Agencies Inc.* The United States of 100 – Shipping agent and lightering
America
Pelican Offshore Services Company, Inc.* The United States of 100 – Lightering
America
American Eagle Tankers UK Limited * United Kingdom 100 – Management services and
commercial operations
Trilith Shipping Pte. Ltd.* Singapore 100 – Shipping
Trilithon Shipping Pte. Ltd.* Singapore 100 – Shipping
Crystal Shipowning Pte. Ltd.* Singapore 100 – Shipping
Eagle Shipmanagement Pte. Ltd.* Singapore 100 – Ship management
MTL Petrolink Corporation* The United States of 100 – Marine transportation services
America and lightering
OMIP, Inc.* The United States of 100 – Ship rental services and
America lightering
Offshore Marine Services, Inc.* The United States of 100 – Lightering
America
175
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

176
Notes To The Financial Statements
( c o n t i n u e d )
38. SUBSIDIARIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Harlink, Inc.* The United States of 100 – Lightering
America
Neulink, Inc.* The United States of 100 – Lightering
America
MISC Nigeria Ltd. Nigeria 60 – Dormant
* Audited by firms of auditors other than Ernst & Young
^ In the process of liquidation
39. ASSOCIATED COMPANIES AND ACTIVITIES
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Olivier Shipping Limited Liberia 50 50 Shipowning
Yuasa Investment Limited British Virgin Islands – 50 Shipping
Transware Distribution Services Pte. Ltd. Singapore 50 50 Warehousing
Titar Travel Sdn. Bhd. Malaysia – 50 Travel agent
Transasia Pool Pte. Ltd. Singapore 50 50 Ship management
MISC Agencies (Thailand) Company Limited Thailand 49 49 Shipping agent
MISC Agencies Lanka (Pvt) Ltd. Sri Lanka 40 40 Shipping agent and freight
forwarding services
Affin Merchant Bank Berhad Malaysia 37 37 Merchant banking
Moor Industrial Transport Limited Jersey, Channel 25 25 Investment holding
Island
Transware Logistics (Pvt) Ltd. Sri Lanka 25 25 Inland container depot
Voray Holdings Limited China 25 25 Investment holding
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

39. ASSOCIATED COMPANIES AND ACTIVITIES (CONTINUED)
Country of Effective Interest (%)
Name of Company Incorporation 2004 2003 Principal Activities
Hubei Zhong Chang Vegetable Oil China 15 15 Vegetable oil refinery
Co. Ltd.
Beijing King Voray Edible Oil Co. Ltd. China 6 6 Vegetable oil refinery
Tianjin Voray Bulking Installation Co. Ltd. China 13 13 Storage of vegetable oil
Malaysia Pakistan Venture Sdn. Bhd. Malaysia 25 25 Investment holding
Mapak Qasim Bulker Pte. Ltd. Pakistan 19 19 Storage of edible oil
Mapak Edible Oil Pte. Ltd. Pakistan 16 16 Dormant
40. SIGNIFICANT EVENTS
(i) On 5 November 2002, MISC Integrated Logistics Sdn. Bhd., a wholly-owned subsidiary of the Corporation entered into a sale and
p u rchase of shares agreement with Faber Haulage Sdn. Bhd. to acquire 10,000,000 ordinary shares of RM1 each in MISC Haulage
Services Sdn. Bhd. ("MHS"), re p resenting 25% equity interests in MHS for a total cash consideration of RM19,500,000. The
acquisition was completed on 19 May 2003. As a result, MHS became a wholly-owned subsidiary of the Corporation.
(ii) On 29 April 2003, the Corporation through its wholly-owned subsidiary entered into an agreement with Neptune Orient Lines Ltd.
for the acquisition of 100% interest in American Eagle Tankers Inc. Limited ("AET"), for a purchase price of USD445 million
(equivalent to RM1,691 million) as adjusted upwards in net assets at completion date of USD53,260,000 (equivalent to
RM202,388,000) and upwards, by reference to an "earn out" mechanism based on the performance of AET over a period of 24
months following the completion date on 22 July 2003.
(iii) On 16 July 2003, the Corporation signed an agreement for USD830 million 364 day bridging loan facility with a consortium of
international and domestic financial institutions. The proceeds were used to fund the acquisition of 100% interest in American
Eagle Tankers Inc. Limited, a petroleum tanker company.
(iv) On 18 December 2003, the Corporation entered into a sale and purchase agreement with Kuok Brothers Sdn. Bhd. and IMC
Enterprises Incorporated to acquire an additional 22% equity interest in MSE Holdings Sdn. Bhd. ("MSE"), an associated
company of the Corporation for a total consideration of RM115,199,000. The acquisition was completed on 17 March 2004.
As a result, MSE became a subsidiary of the Corporation.
(v) On 30 March 2004, the Corporation disposed enbloc, 15 bulk vessels owned and operated by the Corporation and its subsidiary
for a total consideration of USD98 million resulting in a gain of USD84 million. The disposal was completed on 13 May 2004.
41. COMPARATIVE FIGURES
The presentation and classification of items in the current year financial statements have been consistent with the previous
financial year.
177
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

178
List Of Ve s s e l s
As At 30 June 2004
Excluding FPSO facility Bunga Kertas
D e a d w e i g h t G ro s s
Type of Ve s s e l Name of Ve s s e l Year Built (Metric To n n e s ) To n n a g e
Liquefied Natural 1. Puteri Intan Satu 2002 76,110 93,038
Gas Carriers 2. Puteri Delima Satu 2002 76,110 93,038
3. Puteri Nilam Satu 2003 76,110 94,446
4. Puteri Zamrud Satu 2004 76,110 94,446
5. Puteri Intan 1994 62,719 86,205
6. Puteri Delima 1995 62,719 86,205
7. Puteri Nilam 1995 62,719 86,205
8. Puteri Zamrud 1996 62,719 86,205
9. Puteri Firus 1997 62,719 86,205
10. Tenaga Satu 1982 72,083 80,346
11. Tenaga Dua 1981 72,083 80,346
12. Tenaga Tiga 1981 72,083 80,346
13. Tenaga Empat 1981 71,588 80,346
14. Tenaga Lima 1981 71,588 80,346
15. Aman Bintulu 1993 9,220 16,399
16. Aman Sendai 1997 9,220 16,336
17. Aman Hakata 1998 9,214 16,336
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
1,005,074 1,256,794
Crude Oil Tankers 18. Bunga Kasturi 2003 299,999 156,967
19. Bunga Kelana Satu 1997 105,575 57,017
20. Bunga Kelana Dua 1997 105,967 57,017
21. Bunga Kelana 3 1998 105,784 57,017
22. Bunga Kelana 4 1999 105,815 57,017
23. Bunga Kelana 5 1999 105,788 57,017
24. Bunga Kelana 6 1999 105,811 57,017
25. Bunga Kelana 7 2004 105,500 58,194
26. Bunga Kelana 8 2004 105,500 58,194
27. Bunga Kenanga 2000 73,096 40,037
28. Quasar 1989 97,197 52,500
29. Eagle Virginia 2002 306,999 161,233
30. Eagle Vermont 2002 306,999 161,233
31. Eagle Charlotte 1997 107,169 57,949
32. Eagle Columbus 1997 107,169 57,949
33. Eagle Albany 1998 107,160 57,929
34. Eagle Anaheim 1999 107,160 57,929
35. Eagle Atlanta 1999 107,160 57,929
36 Eagle Tacoma 2002 107,123 58,166
37. Eagle Trenton 2003 107,123 58,166
38. Eagle Tucson 2003 107,123 58,166
39. Eagle Tampa 2003 107,123 58,166
40. Eagle Toledo 2003 107,092 58,166
41. Eagle Phoenix 1998 106,127 56,346
42. Eagle Austin 1998 105,426 58,156
43. Eagle Augusta 1999 105,345 58,156

D e a d w e i g h t G ro s s
Type of Ve s s e l Name of Ve s s e l Year Built (Metric To n n e s ) To n n a g e
Crude Oil Tankers 44. Eagle Memphis 1987 104,499 53,483
(continued) 45. Eagle Milwaukee 1987 104,385 53,483
46. Eagle Auriga 1993 102,352 55,962
47. Eagle Baltimore 1996 99,405 57,456
48 Eagle Beaumont 1996 99,448 57,456
49. Eagle Birmingham 1997 99,343 57,456
50. Eagle Boston 1996 99,328 57,456
51. Eagle Subaru 1994 95,675 52,504
52. Eagle Otome 1994 95,663 52,504
53. Eagle Centaurus 1992 95,644 52,504
54. Eagle Carina 1992 95,639 52,504
55. Eagle Corona 1993 95,634 52,504
4,505,345 2,438,905
Product Tankers 56. Bunga Kekaras 1995 29,990 20,378
57. Bunga Kerayong 1994 18,130 12,994
58. Bunga Kemiri 1995 9,932 5,782
59. Bunga Kasai 1994 6,033 3,581
60. Pernas Rantau 1994 6,025 3,581
70,110 46,316
LPG Carriers 61. Konsep Maju 1995 4,999 4,951
62. Bunga Kekwa 1995 3,053 3,496
63. Pernas Butane 1992 2,213 2,352
10,265 10,799
Chemical Tankers 64. Bunga Melati Satu 1997 32,127 22,254
65. Bunga Melati Dua 1997 32,169 22,254
66. Bunga Melati 3 1999 31,983 22,116
67. Bunga Melati 4 1999 31,967 22,116
68. Bunga Melati 5 1999 31,975 22,116
69. Bunga Melati 6 2000 31,981 22,116
70. Bunga Melati 7 2000 31,972 22,116
71. Bunga Anggerik 1989 29,995 18,453
72. Bunga Tanjung 1991 29,980 18,453
73. Bunga Mawar 1990 29,974 18,453
74. Bunga Cenderawasih 1990 29,928 18,453
75. Bunga Semarak 1990 16,924 9,951
76. Bunga Siantan 1991 16,924 9,951
77. Bunga Melawis Satu 1997 9,025 6,544
78. Bunga Melawis Dua 1997 8,621 6,373
395,545 261,719
179
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

180
List Of Ve s s e l s
( c o n t i n u e d )
D e a d w e i g h t G ro s s
Type of Ve s s e l Name of Ve s s e l Year Built (Metric To n n e s ) To n n a g e
Containerships 79. Bunga Pelangi 1991 61,777 53,521
80. Bunga Pelangi Dua 1995 61,428 53,379
81. Bunga Raya Satu 1998 47,858 39,582
82. Bunga Raya Dua 1998 48,244 39,582
83. Bunga Teratai 1998 24,613 21,339
84. Bunga Teratai Dua 1998 24,554 21,339
85. Bunga Teratai 3 1998 24,580 21,339
86. Bunga Teratai 4 1998 24,561 21,339
87. Bunga Terasek 1991 23,692 17,215
88. Bunga Delima 1990 23,584 17,215
89. Bunga Kenari 1991 23,574 17,215
90. Bunga Bidara 1990 23,518 17,215
91. Bunga Mas Satu 1995 11,064 7,998
92. Bunga Mas Dua 1995 11,064 7,998
93. Bunga Mas Tiga 1995 11,034 7,998
94. Bunga Mas Empat 1996 11,036 7,998
95. Bunga Mas Lima 1997 8,661 8,957
96. Bunga Mas Enam 1997 8,998 8,957
97. Bunga Mas Tujuh 1997 8,998 8,957
98. Bunga Mas Lapan 1998 8,995 8,957
99. Bunga Mas 9 1998 12,250 9,380
100. Bunga Mas 10 1998 12,288 9,380
101. Bunga Mas 11 1998 10,325 8,612
102. Bunga Mas 12 1999 10,313 8,612
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
537,009 444,084
Panamax 103. Bunga Saga Satu 1993 73,503 39,012
Bulk Carriers 104. Bunga Saga Dua 1993 73,515 39,012
105. Bunga Saga Tiga 1994 73,496 39,012
106. Bunga Saga Empat 1994 73,498 39,012
107. Bunga Saga Lima 1998 73,144 38,489
108. Bunga Saga Enam 1998 73,056 38,489
109. Bunga Saga Tujuh 1998 73,220 38,489
110. Bunga Saga Lapan 1998 73,207 38,489
111. Bunga Saga 9 1999 73,127 38,972
112. Bunga Saga 10 1999 73,148 38,972
113. Pernas Amang 1986 64,944 36,569
797,858 424,517

D e a d w e i g h t G ro s s
Type of Ve s s e l Name of Ve s s e l Year Built (Metric To n n e s ) To n n a g e
Handymax Bulk Carriers 114. Bunga Orkid Satu 1994 43,245 25,498
115. Bunga Orkid Dua 1994 43,216 25,498
116. Bunga Orkid Tiga 1994 43,189 25,498
117. Bunga Orkid Empat 1995 43,189 25,498
118. Bunga Orkid Lima 1995 43,216 25,498
119. Bunga Melor Satu 1994 43,108 24,550
120. Bunga Melor Dua 1995 43,125 24,550
121. Bunga Melor Tiga 1995 43,108 24,550
122. Bunga Melor Empat 1995 43,108 24,550
388,504 225,690
Handysize Bulk Carriers 123. Handy Tiger 1985 38,632 23,207
124. Handy Trader 1985 32,772 18,987
125. Handy Ruby 1986 27,652 16,582
126. Handy Emerald 1986 27,652 16,582
127. Handy Islander 1985 26,587 15,833
128. Handy Gunner 1995 26,516 16,041
129 Handy Roseland 1996 26,516 16,041
130. Happy Venture 1996 27,000 18,070
131. Nerano 1986 26,648 15,847
132 Pacific Mattsu 1996 26,516 16,041
133. Pacific Selesa 1997 26,411 16,041
134. Marquisa 1997 26,411 16,041
135. Gangga Nagara 1998 24,128 15,888
136. Sea Maestro 1997 24,111 15,888
137. Sea Maiden 1998 24,110 15,888
411,662 252,977
Multi-Purpose 138. Pernas Proton 1987 7,055 5,548
Bulk Carriers
7,055 5,548
Total Tonnage of MISC owned vessels: 8,128,427 5,367,349
181
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

182
List Of Ve s s e l s
( c o n t i n u e d )
D e a d w e i g h t G ro s s
Type of Ve s s e l Name of Ve s s e l Year Built (Metric To n n e s ) To n n a g e
Inchartered Vessels
Liquefied Natural Gas Carriers 1 3 9 . Golar Winter 2 0 0 4 8 0 , 8 1 1 9 3 , 8 9 9
1 4 0 . Galicia Spirit 2 0 0 4 7 1 , 0 6 0 9 6 , 0 0 0
1 4 1 . Methane Princess 2 0 0 2 7 0 , 7 9 8 9 3 , 8 9 9
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
222,669 283,798
Crude Oil Tankers 142. Camden 1990 298,306 156,802
143. Bourgogne 1996 296,230 161,178
144. Glenross 1993 90,679 53,135
145. Lochness 1994 90,607 53,135
146. Sanko Brave 2003 105,400 56,400
147. Sanko Bright 2003 105,400 56,400
986,622 537,050
Chemical Tanker 148. MMM Galveston 1990 7,332 4,489
Containerships 149. Kota Jati 2000 24,973 18,502
150. Pacific Quest 1983 32,631 31,403
151. Order Trader 1998 30,360 23,600
152. Cape Charles 1986 38,499 41,843
126,463 115,348
Total tonnage of
inchartered vessels: 1,343,086 940,685
Total Tonnage (including
inchartered vessels): 9,471,513 6,308,034

48 183
P ro p e rties Owned By MISC Bhd And Its Subsidiari e s
As At 31 March 2004
Tenure & Area Approx. Age Net Book
Year Lease in Existing of Bldg./Land Value
Location Description Expires sq. ft. Use (Years) (RM)
1. No. 2 Jalan Conlay Land Freehold 63,600 Rented 30 22,300,000.00
50450 Kuala Lumpur
2. Wisma MISC Office Building Freehold 262,500 Rented 28 13,461,729.00
No. 2 Jalan Conlay
50450 Kuala Lumpur
3. Lot 10 Lebuh Hishamuddin Satu Land, Leasehold/ 191,296 MISA 20 3,815,249.99
(Kaw 20) Office Building 2086 Head Office,
Komplek Industri Baru P.K.N.S. & Warehouse Warehouse &
Selat Klang Utara Container Yard
42008 Pelabuhan Klang
Selangor Darul Ehsan
4. Lot 8 Lebuh Hishamuddin Satu Land & Leasehold/ 147,853 Container Yard 13 1,836,872.50
(Kaw 20) Container Yard 2086
Komplek Industri Baru P.K.N.S.
Selat Klang Utara
42008 Pelabuhan Klang
Selangor Darul Ehsan
5. Lot 23, Lebuh Sultan Mohamad 1 Land, Leasehold/ 2,221,560 Cargo cum 13 48,289,882.54
Bandar Sultan Suleiman Office Building, 2089 Office Complex
42008 Port Klang Warehouse, and Container Yard
Selangor Darul Ehsan Workshop,
Repair Shed &
Container Yard
6. No. 7 Lorong Merpati 1 Double Storey Freehold 4,117 Vacant 21 111,317.78
Jalan Bukit Sekilau Semi-Detached
Taman Tas Mahkota House
25200 Kuantan
Pahang Darul Makmur
7. Blok-H, Tgkt. 7 Unit No. 1 Apartment Freehold 1,300 Rented 24 164,011.76
Mount Pleasure Apartment
12000 Batu Feringghi
Pulau Pinang
8. Westplein 6-7 Office Building Freehold 8,083 MISAN 25 2,212,427.51
3016 BM Rotterdam Head Office
Holland
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

184
P roperties Owned By
MISC Bhd And Its Subsidiaries
( c o n t i n u e d )
Tenure & Area Approx. Age Net Book
Year Lease in Existing of Bldg./Land Value
Location Description Expires sq. ft. Use (Years) (RM)
9. 231 The Collonades Apartment Leasehold/ 817 For Staff 12 602,860.00
Porchester Square 2073
Bayswater
London W2 6AS
10. H.S (D) 48445 No. P.T. 23991 Land & Leasehold/ 1,119,492 Vacant Land & 13 10,786,248.00
Mukim Kapar Container Yard 2087 Container Yard
Daerah Klang
Selangor Darul Ehsan
11. Lot PLO 137 & 138 Land, Leasehold/ 894,287 Cargo cum, 11 17,063,268.00
Tebrau II Industrial Estate Office Building, 2023 Office Complex
Johor Darul Takzim Warehouse, & Container Yard
Workshop,
Repair Shed &
Container Yard
12. Plot 2 P.T. 2113 Land & Leasehold/ 241,326 Office Building 12 1,389,933.00
Air Keroh Industrial Estate Container Yard 2091 & Container Yard
Melaka
13. Lot 568-615 Mukim 16 Land, Freehold 752,752 Cargo cum 12 24,825,610.00
Daerah Seberang Perai Utara Office Building, Office Complex
Pulau Pinang Warehouse, & Container
Workshop, Yard
Repair Shed &
Container Yard
14. PLO 516, Jalan Keluli 3 Land, Leasehold/ 217,800 Office Building 9 2,872,877.00
Kaw. Perindustrian Pasir Gudang Office Building 2025 & Container
Mukim Plentong & Container Yard Yard
Johor Darul Takzim
15. Precint 3.8, Seksyen 14 Land Leasehold/ 107,413 Vacant Land 8 10,913,367.00
Shah Alam 2099
Selangor Darul Ehsan
16. Lot 36, Seksyen 7, Fasa 1A Land Leasehold/ 1,725,978 Vacant Land 8 25,702,799.00
Pulau Indah 2097
Industrial Park (West Port)
Pelabuhan Klang
Selangor Darul Ehsan
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

Tenure & Area Approx. Age Net Book
Year Lease in Existing of Bldg./Land Value
Location Description Expires sq. ft. Use (Years) (RM)
17. Town Quay Wharf Office Building Leasehold/ 10,000 MISC Europe 10 3,454,641.00
Barking Essex 2990 Office and
London MISAL Office
18. 447, Kent Street Office Premises Freehold 3,767 MISAU 10 1,565,201.38
Sydney, Australia Sydney Office
19. Suite 40, Albert Square Office Premises Freehold 10,500 MISAU 10 2,394,564.01
37-39 Albert Road Melbourne Office
Melbourne 3004
Australia
20. Ground and 1st Floor Office Premises Leasehold/ 6,000 MISA Agencies 10 1,326,219.49
Wisma Takada 2092 Kota Kinabalu
Jalan Gaya, Lorong EWAN Office
88000 Kota Kinabalu
21. Land in Kuching Section 66
Tanah Daerah Pekan Kuching
a) Lot 1411 a) Land Leasehold/ 227,296 Vacant Land 7 4,431,595.00
2055
b) Lot 2115 b) Land Leasehold/ 85,987 Vacant Land 7 4,269,857.00
2046
22. Land in Fremantle, Lot 77 & 78
North Bank Queen Victoria Street
Fremantle, Australia
a) Lot 77 a) Land Freehold 2,196 Vacant Land 8 271,381.75
b) Lot 78 b) Land Freehold 2,196 Vacant Land 8 271,381.75
23. No. 18 3 Storey Leasehold/ 1,800 Rented 7 1,095,711.00
Jln. Tengku Ampuan Zabedah Shop Office 2094
G 9/G, Section 9, Shah Alam
Selangor Darul Ehsan
24. Part of Lot PT 4593 Land, Leasehold/ 47,522 Office Building 4 10,695,636.00
Kawasan Perindustrian Kerteh Office Building 2060 & Warehouse
Mukim Kerteh, 24300 Kemaman & Warehouse
Terengganu Darul Iman
25. Lot 154, Plot 3 Land Leasehold/ 217,800 Vacant Land 3 1,325,685.00
Kawasan Perindustrian Kidurong 2062
Bintulu, Sarawak
185
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

186
P roperties Owned By
MISC Bhd And Its Subsidiaries
( c o n t i n u e d )
Tenure & Area Approx. Age Net Book
Year Lease in Existing of Bldg./Land Value
Location Description Expires sq. ft. Use (Years) (RM)
26. Galveston, Texas, USA Land & Office Owned 290,415 Workboats 35 3,618,027.12
Dockage Ltrg
Support
Operation
27. Sabine Pass, Texas, USA Land & Office Owned 188,907 Vacant 15 314,117.92
28. PT 12701, Tengku Jaafar Upgrade of Leasehold/ 15,531 Container yard 3 668,934.17
Industrial Park container yard 2005
71450 Seremban
Negeri Sembilan
29. PTD 22805 Land, shipyard, Leasehold/ 5,307,573 Shiprepair, 30 343,381,004.00
Mukim Plentong warehouse 2040 shipbuilding
Johor Bahru workshops and and engineering
office buildings fabrication
yards, ancillary
facilities and office
buildings
30. PTD 65616 4 storey Leasehold/ 169,928 Staff quarters 25 3,609,263.00
Mukim Plentong residential flats 2044
Johor Bahru
31. PTD 65615 Land Leasehold/ 698,354 Vacant Nil Nil
Mukim Plentong 2044
Johor Bahru
32. PTD 65617 Land Leasehold/ 374,093 Vacant Nil Nil
Mukim Plentong 2044
Johor Bahru
33. PTD 65618 Land Leasehold/ 588,050 Vacant Nil Nil
Mukim Plentong 2044
Johor Bahru
Notes:
MISA – MISC Agencies Sdn Bhd MISAU – MISC Agencies (Australia) Pty. Ltd.
MISAN – MISC Agencies (Netherlands) B.V. MISAL – MISC Agencies (U.K.)
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

MISC Group Of Companies
MISC HEAD OFFICE
MALAYSIA INTERNATIONAL SHIPPING
CORPORATION BERHAD
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
P.O. Box 10371
50712 Kuala Lumpur
M a l a y s i a
Tel : 603-2273 8088
Fax : 603-2273 6602
Homepage : www. m i s c - b h d . c o m
MISC REGIONAL OFFICES
CENTRAL
KUALA LUMPUR
Malaysia International Shipping
Corporation Berhad
Level 19, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
P.O. Box 10371
50712 Kuala Lumpur
Tel : 603-2273 8088
Fax : 603-2275 3135/2026
FAR EAST
J A PA N
Malaysia International Shipping
Corporation Berhad
c/o MISC (Japan) Ltd.
Koizumi Building, 8th Floor
29-1 Nishigotanda 1-Chome
Shinagawa-ku, Tokyo 141-0031
Tel : 813-5496 2382
Tlx : 2226618 MISCTK J
Fax : 813-5496 2334
EUROPE
UNITED KINGDOM
Malaysia International Shipping
Corporation Berhad ( E u ro p e )
Suite 3.1, Exchange Tower 2
Harbour Exchange Square
Marsh Wa l l
London E14 9GE
United Kingdom
Tel : 44-(0)207-531-4950
Fax : 44-(0)207-987-7642
MISC GROUP OF COMPA N I E S
W H O L LY-OWNED SUBSIDIARIES
(In alphabetical order)
AET Holdings (L) Pte. Ltd.
Unit Level 13 (E)
Main Office To w e r
Financial Park Labuan
Jalan Merd e k a
87000 Federal Territory of Labuan
Tel : 087-451 688
Fax : 087-453 688
American Eagle Tankers Inc. Limited
1 HarbourFront Av e n u e
#11-01 Keppel Bay To w e r
S i n g a p o re, 098632
Tel : 65-6100 2288
Fax : 65-6376 2791
American Eagle Tankers UK Limited
Suite 3.01
Harbour Exchange To w e r
2 Harbour Exchange Square
London E14, 9GB
United Kingdom
Tel : 44-20 7987 3130
Fax : 44-20 7987 7642
American Eagle Tankers Inc. Limited
Milner House , 18 Parliament Stre e t
Hamilton, Bermuda
U S A
Tel : 02-6490 0302
Fax : 02-6376 2791
American Eagle Tankers Agencies Inc.
American Marine & Off s h o re Services Limited
1900 West Loop South
Suite 920
Houston Texas 77027
Tel : 1-832-615-2000
Fax : 1-713-622-2256
Bison Shipping Ltd-Liberia
Level 18, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2051
Fax : 603-2275 2029
Crystal Shipowning Co. Pte Ltd
1 HarbourFront Av e n u e
#11-01 Keppel Bay To w e r
S i n g a p o re 098632
Tel : 65-6100-2288
Fax : 65-6376 2791
Eagle Shipmanagement Pte Ltd
1 HarbourFront Av e n u e
#11-01 Keppel Bay To w e r
S i n g a p o re 098632
Tel : 65-6100 2288
Fax : 65-6376 2791
EBC Assets Ltd-Bermuda
EBC Assets Ltd-Liberia
EBC Holding Ltd-Liberia
EBC Limited-(Bermuda)
EBC Shipping Ltd-Bermuda
EBC Shipping Ltd-Liberia
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2580
Fax : 603-2275 2705
Happy Ve n t u re Ltd-Liberia
Level 18, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2051
Fax : 603-2275 2029
Harlink Corp.
1900 West Loop South
Suite 920
Houston Texas 77027
Tel : 1-832-615-2000
Fax : 1-713-622-2256
MISC (Singapore) Pte. Ltd.
1 HarbourFront Av e n u e
Keppel Bay To w e r
#11-05/08
S i n g a p o re 098632
Tel : 65-6220 1522
Fax : 65-6271 0817
Malaysia International Shipping Agencies
(UK) Ltd.
Quayside House
13 Town Quay Wharf
Abbey Road, Barking
Essex IG11 7AT
United Kingdom
Tel : 44-181-591 3232
Fax : 44-181-594 0733
187
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

188
MISC Group Of Companies
( c o n t i n u e d )
MISC Agencies (Sarawak) Sdn. Bhd.
No. 1, 1st Floor
Bintulu Parkcity Commercial Centre
Bintulu, 97012 Sarawak
M a l a y s i a
Tel : 0686-318 311/312/313
Fax : 0686-311 326
MISC Agencies (Australia) Pty. Ltd.
Suite 40, Albert Square
37-39 Albert Road
M e l b o u rne, Victoria 3004
A u s t r a l i a
Tel : 61-3-9867 6299
Fax : 61-3-9867 6167
MISC Agencies (Netherlands) BV.
Westplein 6-7, 3016 BM Rotterd a m
N e t h e r l a n d s
Tel : 31-10-209 2222
Fax : 31-10-209 2299
MISC Agencies Sdn. Bhd.
Lot 8 & 10, Leboh Sultan Hishamuddin 1
Bandar Sultan Suleiman
Pel. Utara, P.O. Box 146
42008 Pelabuhan Klang
Selangor Darul Ehsan
Tel : 603-3176 5753
Fax : 603-3176 2857
MISC Capital (L) Ltd
Level 23 , Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2688
Fax : 603-2275 2091
MISC Enterprises Holdings Sdn. Bhd.
Level 25 , Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2688
Fax : 603-2275 2091
MISC Integrated Logistics Sdn. Bhd.
Level 28 , Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2081
Fax : 603-2275 2182
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
MISC Haulage Services Sdn. Bhd.
Lot 23, Lebuh Sultan Mohamed 1
Kawasan Perusahaan Fasa 2
Bandar Sultan Suleiman, P.O. Box 235
42008 Pelabuhan Klang
Selangor Darul Ehsan
Tel : 603-3169 6700
Fax : 603-3176 3800
MISC (Japan) Limited
Koizumi Building 5th FIoor
1-29-1 Nishigotanda, 1-Chome, Shinagawa-ku
Tokyo 141-op.31, Japan
Tel : 81-3-5496 2388
Fax : 81-3-5496 2380
MISC Trucking & Wa rehousing Services Sdn. Bhd.
Lot 23, Jalan Sultan Mohamed 1
Kawasan Perusahaan PKNS
Bandar Sultan Suleiman
42000 Pelabuhan Klang
Selangor Darul Ehsan
Tel : 603-3176 4188
Fax : 603-3176 1833
MTL Petrolink Corp.
Neulink Corp.
O ff s h o re Marine Services Inc.
OMIP Inc.
1900 West Loop South, Suite 920
Houston Texas 77027
Tel : 1-832-615-2000
Fax : 1-713-622-2256
Peddler Shipping Ltd-Liberia
Level 18, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2051
Fax : 603-2275 2029
Pelican Off s h o re Services Company Inc.
1900 West Loop South, Suite 920
Houston Texas 77027
Tel : 1-832-615-2000
Fax : 1-713-622-2256
P e t ronas Tankers Sdn. Bhd. (PTSB)
Puteri Delima Sdn. Bhd.
Puteri Firus Sdn. Bhd.
Puteri Intan Sdn. Bhd.
Puteri Nilam Sdn. Bhd.
Puteri Zamrud Sdn. Bhd.
Level 16, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 3201
Fax : 603-2275 3209
Puteri Delima Satu (L) Pte. Ltd.
Puteri Firus Satu (L) Pte. Ltd.
Puteri Intan Satu (L) Pte. Ltd.
Puteri Intan Dua (L) Pte. Ltd.
Puteri Nilam Satu (L) Pte. Ltd.
Puteri Zamrud Satu (L) Pte. Ltd.
Level 16, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 3201
Fax : 603-2275 3209
Rhinestone Shipping Ltd-Liberia
Safety Shipping Ltd-Liberia
Selesa Shipping Ltd-Liberia
Level 18 , Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2051
Fax : 603-2275 2029
Trilith Shipping Pte Ltd
Trilithon Shipping Pte Ltd
1 HarbourFront Av e n u e
#11-01 Keppel Bay To w e r
S i n g a p o re 098632
Tel : 65-6100-2288
Fax : 65-6376 2791
PA RT LY OWNED SUBSIDIARIES
AND ASSOCIATE COMPA N I E S
(In alphabetical order)
Asia LNG Transport Sdn. Bhd.
Asia LNG Transport Dua Sdn. Bhd.
Level 16, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 3201
Fax : 603-2275 3209
Beijing King Voray Edible Oil Co. Ltd.
23 Nanyuan Road We s t
Fengtoi District
Beijing 100076, P. R . C h i n a
Tel : 86-10-6799 1510
Fax : 86-10-6799 1214
FPSO Ve n t u res Sdn Bhd
Suite 2.03, 2nd Floor, Menara SPK
No. 22 Jalan Sultan Ismail
56250 Kuala Lumpur
Tel : 603-2145 2600
Fax : 603-2145 2700

Hubei Zhong Chang Vegetable Oil Co.Ltd.
Ding Gong Miao
Baisha Zhou
Wuchang, Wuhan
P.R.China 430064
Tel : 86-27-8811 4643
Fax : 86-27-8811 4641
Leo Launches Pte. Ltd.
No. 1, Kim Seng Pro m e n a d e
G reat World City, #07-01
S i n g a p o re 237994
Tel : 65-220 1522
Fax : 65-224 2753
Malaysia Pakistan Ve n t u re Sdn. Bhd.
9th Floor, Balai Felda
Jalan Gurney Satu
54000 Kuala Lumpur
Tel : 603-2692 5335
Fax : 603-2698 2677
Malaysia Shipyard & Engineering Sdn. Bhd.
Pasir Gudang Industrial Are a
P.O. Box 77
81707 Pasir Gudang, Johor
Tel : 607-251 2111
Fax : 607-251 7587
Malaysia Towage and Transport Sdn. Bhd.
c/o MSE Sdn. Bhd.
Pasir Gudang Industrial Are a
P.O. Box 77
81707 Pasir Gudang
J o h o r
Tel : 607-251 2111
Fax : 607-251 7587
Malaysia Maritime Academy Sdn. Bhd.
P.O. Box 31, Kuala Sungai Baru
78207 Melaka
Tel : 606-387 6201-5
Fax : 606-387 6700
Mapak Qasim Bulkers (Pvt.) Ltd.
1101, Uni To w e r s
1.1, Chundrigar Road
Karachi - 74200
P a k i s t a n
Tel : 92-21-241 2265
Fax : 92-21-241 6791
MISC Agencies Lanka (Pvt) Ltd.
P.O. Box 795
Level Seven, ‘Valiant To w e r s ’
46/7, Navam Mawatha
Colombo 2, Sri Lanka
Tel : 94-1-348 933-6
Fax : 94-1-348 931
MISC Agencies (Sarawak) Sdn. Bhd.
Lot 257, 1st Floor
Jln Chan Chin Ann, P.O. Box 549
93100 Kuching
S a r a w a k
Tel : 60-82-411 324
Fax : 60-82-412 286
MISC Agencies (Thailand) Co. Ltd.
G reen To w e r, 4th Floor
3656/9-10 Rama 4 Road
Klong To e y, Bangkok 10110
T h a i l a n d
Tel : 66-2-367 3558, 367 3581
Fax : 66-2-367 3586, 367 3587
MISC (Nigeria) Ltd.
c/o Shield Petro l e u m
Top Floor, Fortune To w e r s
27/29, Adeyomo Alakija Stre e t
Victoria Island
Lagos, Nigeria
Tel : 234-1269 3998
Fax : 234-1261 3221
Moor Industrial Transport Ltd-Jersey
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2580
Fax : 603-2275 2705
M S E - ATB Sdn. Bhd.
Level 21, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2273 0266
Fax : 603-2273 8916
MSE Corporation Sdn. Bhd. c/o MSE Sdn. Bhd.
Pasir Gudang Industrial Are a
P.O. Box 77
81707 Pasir Gudang, Johor
Tel : 607-251 2111
Fax : 607-251 7587
MSE Holdings Sdn. Bhd.
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2703
Fax : 603-2275 2705
Olivier Shipping Ltd-Liberia
Level 18, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel : 603-2275 2051
Fax : 603-2275 2029
Transasia Pool Pte. Ltd
5 Temasek Boulevard
#12-01 Suntec Tower 5
S i n g a p o re 038985
Tel : 65-6336 2233
Fax : 65-6334 0618
Tr a n s w a re Distribution Services Pte. Ltd.
9 Gul Circ l e
S i n g a p o re 629565
Tel : 65-861 2345
Fax : 65-861 6451
Tr a n s - w a re Logistics (Pvt) Ltd.
150, 150/1, Pamunugama Road
Tudella, Ja-Ela, Sri Lanka
Tel : 94-1 232 577
Fax : 94-1 232 588
Techno Indah Sdn. Bhd.
c/o MSE Sdn. Bhd.
Pasir Gudang Industrial Are a
P.O. Box 77
81707 Pasir Gudang, Johor
Tel : 607-251 2111
Fax : 607-251 7587
Tianjin Voray Bulking
Installation Co. Ltd.
No. 2000, Nanjiang Road
Nanjiang Port Are a
Tanggu, Tianjin
P.R. China 300452
Tel : 86-22-2570 3079
Fax : 86-22-2570 3086
Voray Holdings Limited
3 4 / F, The Lee Gard e n s
33, Hyson Avenue, Coriseway Bay
Hong Kong, P.R. China
Tel : 852-2909 5666
Fax : 852-2810 0032
189
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

190
Notice Of Annual General Meeting
Notice is hereby given that the Thirty-fifth Annual General Meeting of
members of Malaysia International Shipping Corporation Berhad will
be held on Thursday, 12 August 2004 at 11.00 a.m. at Nirwana Ballroom I, Lower
Lobby, Mutiara Hotel Kuala Lumpur, Jalan Sultan Ismail, 50250 Kuala Lumpur,
for the following purposes:-
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
As Ordinary Business:
1. To receive and adopt the audited financial statements for the financial year ended
31 March 2004 and the Reports of the Directors and Auditors thereon.
2. To declare a final dividend of 15 sen per share and a special dividend of 10 sen per
share (Malaysian Income Tax exempted) in respect of the financial year ended
31 March 2004.
3. To re-elect the following Directors:-
Retiring pursuant to Article 95
Dato’ Halipah binti Esa
Dato’ Shamsul Azhar bin Abbas
Retiring pursuant to Article 97
Dato Sri Liang Kim Bang
4. To approve the Director’s fees for the financial year ended 31 March 2004.
5. To re-appoint Messrs, Ernst & Young as auditors of the Company and to authorise
the Directors to fix their remuneration.
6. To transact any other ordinary business of which due notice has been given.

Notice of Dividend Entitlement and Payment
Notice is hereby given that subject to the approval of Members at the Annual General
Meeting to be held on 12 August 2004, a final dividend of 15 sen per share and a special
dividend of 10 sen per share (Malaysian income tax exempted) for the financial year
ended 31 March 2004 will be paid on 30 August 2004 to Depositors whose names
appear in the Record of Depositors on 17 August 2004.
A Depositor shall qualify for entitlement to the dividend only in respect of:-
a. Shares transferred into the Depositor’s securities account before 4.00 p.m. on
17 August 2004 in respect of transfers;
b. Shares deposited into the Depositor’s securities account before 12.30 p.m. on
15 August 2004 in respect of securities exempted from mandatory deposit; and
c. Shares bought on Bursa Malaysia Berhad (“The Bursa”) on a cum entitlement basis
according to the Rules of The Bursa.
By Order of the Board
Fina Norhizah binti Baharu Zaman
Company Secretary
Kuala Lumpur
Date: 21 July 2004
Notes:
1. A member entitled to attend and vote at
the Meeting is entitled to appoint a proxy
to attend and, on a poll, to vote in his
stead. A proxy may but need not be a
member of the Company and a member
may appoint any person to be his proxy
without limitation and the provisions of
Section 149(1)(b) of the Companies Act,
1965 shall not apply to the Company.
2. In the case of a Corporate Body, the
proxy appointed must be in accordance
with its Memorandum and Articles of
Association and the instrument
appointing a proxy shall be given under
the Company’s Common Seal or under
the hand of an officer or attorney duly
authorised.
3. The form of proxy must be deposited at
the Registered Office of the Company at
Level 25, Menara Dayabumi, Jalan Sultan
Hishamuddin, 50050 Kuala Lumpur not
less than 48 hours before the time
appointed for holding the Meeting.
191
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)

192
S t atement A c c o m p a nying Notice Of Annual General Meeting
Pursuant To Paragraph 8.28(2) Of The Listing Requirements Of Bursa Malaysia Berhad
1. Director who is retiring by rotation pursuant to the Articles of Association.
Dato Sri Liang Kim Bang
2. Director who is retiring by casual vacancy pursuant to the Articles of Association.
Dato’ Halipah binti Esa
Dato’ Shamsul Azhar bin Abbas
3. Directors who are standing for re-election.
Dato Sri Liang Kim Bang
Dato’ Halipah binti Esa
Dato’ Shamsul Azhar bin Abbas
4. Board meetings held during the Financial Year ended 31 March 2004.
A total of five Board meetings were held during the financial year ended 31 March 2004 as follows:-
Date of Meeting
27 May 2003 Board of Directors
7 July 2003 Board of Directors
26 August 2003 Board of Directors
12 November 2003 Board of Directors
25 February 2004 Board of Directors
5. Details of attendance at Board meetings held in the Financial Year ended 31 March 2004.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Board Board Audit
Meetings Committee
Board of Directors Maximum Maximum
Meetings possible Meetings possible to
attended to attend attended attend
Tan Sri Dato Sri Mohd Hassan bin Marican 5 5 – –
Dato’ Hj. Mohd Ali bin Hj. Yasin 5 5 – –
Dato Sri Liang Kim Bang 5 5 3 4
Datuk Siti Hadzar binti Mohd. Ismail 3 5 2 4
Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff bin Hj. Hussain 5 5 4 4
Dato’ Hamzah bin Bakar 2 2 – –
Mr. Harry K. Menon 4 5 4 4

P roxy Fo rm
I/We
of
being a member/members of the abovenamed Company, hereby appoint
of
and failing the abovenamed proxies, the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the
Thirty-Fifth Annual General Meeting of the Company to be held at Nirwana Ballroom I, Lower Lobby, Mutiara Hotel Kuala Lumpur,
Jalan Sultan Ismail, 50250 Kuala Lumpur on Thursday, 12 August 2004 at 11.00 a.m. and at any adjournment thereof, on the following
ordinary resolutions referred to in the notice of Annual General Meeting:-
and/or
Resolution 1 2 3 4 5 6
For
Against
Unless voting instructions are indicated in the spaces above the proxy will vote as he thinks fit.
Signed this day of 2004
Signature/Common Seal of Appointor
No. of shares held
Notes:
1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and, on a poll, to vote in his stead. A proxy may but need not
be a member of the Company and a member may appoint any person to be his proxy without limitation and the provisions of Section149(1)(b) of the
Companies Act, 1965 shall not apply to the Company.
2. In the case of a Corporate Body, the proxy appointed must be in accordance with its Memorandum and Articles of Association, and the instrument appointing
a proxy shall be given under the Company’s Common Seal or under the hand of an officer or attorney duly authorised.
3. This form of proxy must be deposited at the Registered Office of the Company at Level 25, Menara Dayabumi, Jalan Sultan Hishamuddin,50050 Kuala Lumpur
not less than 48 hours before the time appointed for holding the Meeting.

Company Secretary
Malaysia International Shipping Corporation Berhad
Level 25, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Malaysia
STAMP

Design: Johan Design Associates, Malaysia.