annual report - Tenaga Nasional Berhad

higher fuel costs and procurement costsfor imported parts, equipment andservices; as well as increased interestcost on US Dollar and Yen-denominatedloans.The extent to which increases inelectricity generation cost can berecovered will determine the financialcondition of TNB and affect our abilityto make future investments in a timelymanner. While we are not able tochange or influence the market forcesthat are driving fuel costs higher, wewill continue improving the efficiency ofour operations to keep costs low andto strengthen our competitive position.We will also focus on strengtheningour financial fundamentals and willcontinue to provide high quality andreliable services to our customers. Atthe same time we will continue to bea catalyst for the nation’s progress andensure positive economic returns to ourshareholders.Given the volatile global economy, theanticipated lower electricity demandand higher operating costs, theGroup’s financial outlook for FY2009remains challenging. Notwithstandingthis, TNB is committed to providingall its customers with a reliable supplyof electricity and raising the level ofservice and operational excellence. Wewill pursue the SE 10/10 value-creationinitiatives to secure the Group’s growthgoing forward.AcknowledgementsI would like to accord our sincereappreciation to the Government ofMalaysia, the Ministry of Energy,Water and Communications, theMinistry of Finance, the Ministry ofInternational Trade and Industry, theEnergy Commission, the MalaysianIndustrial Development Authority andother government agencies for theirsteadfast support of TNB. Our utmostthanks go to our valued shareholdersand customers for their unwaveringconfidence and faith in the Group.I would like to extend my deepestappreciation to our dedicated employeesfor their perseverance and the excellentwork they have carried out despite aturbulent operating environment. Lastbut not least, my heartfelt gratitudeto the Board of Directors for theirwisdom and insight that has kept usgoing strongly. I look forward to the fullsupport of all our stakeholders as wemove forward to secure TNB’s growth.DATO’ SRI CHE KHALIBBIN MOHAMAD NOHPresident/Chief Executive Officer[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]43