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Faculty of Administrative Science and Policy Studies

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Added on  2021-07-14

Faculty of Administrative Science and Policy Studies

   Added on 2021-07-14

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FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIESBACHELOR IN ADMINISTRATIVE SCIENCESTRATEGIC MANAGEMENT FOR PUBLIC SECTOR (ADS553)TENAGA NASIONAL BERHAD (TNB)RURAL ELECTRIFICATION PROGRAMME1AISYA SHARIFATUN BT ABDUL MUTALIB(2012674024)NUR IZZATY SHAHIRAH BT NOR SHAM(2012493374)FATIN SHUHADAH BT MOHAMMAD RAKIF(2012683528)MOHAMADD ZAMAN SHAHMIM BIN ZULKEPLI(2011145617)
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ContentPage1.0 Introduction3 - 42.0 TNB Background53.0 Mission and vision of TNB6 - 74.0 Lack of proper infrastructure in rural area (electricity)85.0 Rural Electrification Programme9 - 116.0 Source of problem127.0 Program analysis13 - 148.0 SWOT analysis 8.1 Strength 8.2 Weakness 8.3 Opportunities 8.4 Threat15 -17151616179.0 Challenges18 - 1910.0 Recommendation20References21 - 22Table of content2
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1.0IntroductionElectricity first made its appearance in Malaysia at the act of the 20th century, and theearliest record of power generation can be traced back to a humble mining town in Rawang,Selangor. Here, two enterprising individuals Loke Yew and Thamboosamy Pillai installed anelectric generator in 1894 to operate their mines. They were the first to use electric pumps formining in Malaya, and scarred the great beginning of the story of electricity in Malaysia. In thesame year, private supply for street lighting purposes was extended to Rawang town, and in1895 the railway stations in Kuala Lumpur received its first electricity supply. In 1900, theSempam Hydroelectric Power Station in Raub, built by the Raub Australian Gold MiningCompany became the first power station in Malaysia.By the mid-nineteen twenties, more generating plants were small and used a variety offuels, including low grade coal, local wood, charcoal and important oil as well as water power.As the rapid gain in electricity demands continued to manifest, large scale planning, hugequantities of capital from overseas and hiring of foreign technical experts became essential.Hence, the Central Electricity Board (CEB) was established and came into operation on 1September 1949. The board became owner of 34 power stations with a generation capacity of39.88 MW, including a steam power station in Bangsar with a capacitance of 26.5 MW, ahydroelectric power station at Ulu Langat with a capacitance of 2.28 MW as well as variousdiesel affairs with a total capability of 11.1 MW.The board is the success electricity company in Malaysia, however the Board's loansbecame heavier as more funds were needed to fuel its expansion programs. Loans from foreignsources and the government soon stood at approximately RM1 billion each, with internalborrowings added to another 1 billion. Concurrently, staff wage had also risen significantly. Plus,the new power of International Capital and the emerging trend of Globalization made thechallenge even more demanding.3
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Our late Prime Minister Dato Seri Dr. Mahathir Mohamad announced the government'sdecision on a policy of privatization. He stressed the danger of the government becoming aburden to the people it serves. Thus, privatization is set in motion and keeping the nation'sinterest in mind, the government relentlessly pursued its ultimate objective and two pieces oflegislation were passed to replace the existing Electricity Act, and to provide for theestablishment of a new corporation that is called as TENAGA NASIONAL BERHAD (TNB),purposefully replacing the NEB (Successor Company Act). Datuk Hj. Ibak bin Abu Husseinbecame the last Deputy Chairman and General Manager of the NEB and the first ManagingDirector of TNB.On 1 September 1990, Prime Minister Dato Seri Dr. Mahathir bin Mohamad officiallyproclaimed TNB as the heir and successor to NEB. TNB became a private company wholly-owned by the government.4
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2.0 TNB backgroundTenaga Nasional Berhad (TNB) is the largest electricity utility in Malaysia and a leadingutility company in Asia. Listed on the Main Board of Bursa Malaysia with almost RM87 billion inassets, the Company’s more than 33,500 employees serve an estimated 8.3 million customersin Peninsular Malaysia, Sabah and Labuan. TNB’s core businesses are in the generation,transmission and distribution of electricity. In Peninsular Malaysia, the Company supplieshouseholds and industry with electricity generated from six thermal stations and three majorhydroelectric schemes. It also manages and operates the National Grid, which links TNB powerstations and IPPs to the distribution network. The grid is connected to Thailand’s transmissionsystem in the north and Singapore’s transmission system in the south. In East Malaysia, TNBhas an 80% equity in Sabah Electricity Sdn. Bhd. (SESB), which manages the Sabah Grid.Other than its core business, TNB has diversified into the manufacture of transformers,high voltage switchgears and cables; the provision of professional consultancy services; andarchitectural, civil, electrical engineering works and services, repair and maintenance. TheCompany also engages in research and development, property development and managementservices. Tapping into opportunities available overseas, TNB is making inroads into emergingmarkets, focusing on the Asia-Pacific, Middle East and North Africa regions.TNB also places strong emphasis on its social responsibilities. Through its foundationYayasan Tenaga Nasional (YTN), established in 1993, the Company runs numerous CSRprograms that benefit the underprivileged. Among its many successful social outreach programsare those that education via scholarships and better health for all.5
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3.0 Vision and mission of TNBAs TNB is the monopoly company that provide electricity in Malaysia their vision is "ToBe Among the Leading Corporations in Energy and Related Businesses Globally" they did notonly want to expand their business in Malaysia however they want to expand it in internationallevel. They had come out with 20 year strategic plan to support their vision with the ultimateobjective of transforming into a world-class player by the year 2025. To support this vision, TNBinvests significantly in the continuous professional development of its employees throughstructured programs. There is also renewed emphasis on sustainability, both of the organizationand of the Malaysian environment. The Strategic Plan entails greater focus on green initiativessuch as the development of renewable sources of fuel, and more effective demand sidemanagement via energy efficiency, thus complementing the Government’s carbon reductionagenda.Tenaga Nasional Berhad (TNB) had made it to the top 50 energy companies in Asiabased on a survey of top 250 Energy Companies in the world by the United State-based Platts'.TNB ranked 42nd among the top 57 energy companies in Asia. TNB is also the only Malaysiancompany in the list. The top four energy companies in Asia are PetroChina Co. Ltd. (China),China Petroleum & Chemical Corp. (China), Oil & Natural Gas Corp. Ltd. (India) and RelianceIndustries Ltd. (India). Globally, TNB is ranked 168th among the top 250 Global EnergyCompanies. Stand on top of the global ranking is Exxon Mobil Corp. From the United States. Itis an annual measure, undertaken in collaboration with Platts' sister company Standard &Poors, of the financial performance of the world's leading energy businesses. The rankings recognize outstanding financial performance. This Platts' fifth annualsurvey of global energy companies measures companies' financial performance using four keymetrics: asset worth, revenues, profits and return on invested capital (ROIC).. This recognitionis significant to TNB for it is placed in the same league with all other worlds largest and mostsuccessful energy producers. It is indeed a stepping stone for TNB to spread its wings in the6
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