The Malaysian Convention and Exhibition Bureau (MyCEB) achieved the objectives of its establishment in managing support and incentive activities, namely subvention funds, efficiently and effectively, according to the Auditor General’s 2021 Series 2, released today.
The report said MyCEB, a company set up by the Ministry of Tourism, Arts, and Culture (Motac), has succeeded in promoting and positioning Malaysia as a preferred destination for organising international events.
“However, the performance and management aspects of the supporting activities and incentives as well as corporate governance need to be improved,” the report said.
The report also stated that MyCEB achieved the set Key Performance Indicator (KPI) target, which ranges from 101 percent to 5,139 percent.
“The two KPIs set for 2019 are the number of international delegations participating in business travel programmes and the number of days international delegations participate in business travel programmes.
“The targets set were 92,400 delegates and 357,000 days.
“For 2020, only one KPI has been set with a target of 44,000 days, while the indicator for the number of international delegations participating in business tourism programmes was dropped for the year,” the report said.
At the same time, only one KPI has been set for 2021, namely the number of days of domestic delegations participating in business tourism programmes, with a target of 1,000 days, which is focused on domestic participants as the border gates were yet to be opened,
According to the report, MyCEB has fully adopted two of the nine aspects of corporate governance best practices, namely the chairman and chief executive officer.
“Five of the seven aspects that are not fully practised are the board of directors, company secretary, audit committee (JKA), internal audit, and appointments and remuneration committee,” the report said.
As such, the report said that MyCEB’s corporate governance practices were satisfactory.
The report disclosed that MyCEB’s financial position is less stable as the company’s operating costs, which exceed the applications and allocations received, have contributed to the company’s financial instability.
“MyCEB also recorded a decline in accumulated profit and cash balance as the grant received from the government was not sufficient to cover the company’s expenses,” the report said.
The report also recommended that MyCEB establish a method for calculating the company’s KPI performance based on actual performance in the current year and update the information in the Customer Relationship Management (CRM) system to ensure that the KPI reports are accurate.
MyCEB was also recommended to improve the performance on the use of subvention funds and event support to achieve the company’s objectives. In addition, the application for managing allocations must also be in line with MyCEB’s annual expenditure projections.
The report also recommended that MyCEB improve its corporate governance practices related to board of directors learning programmes, the role of the company secretary, standard operating procedure (SOP) related to the company’s key activities, frequency of audit committee meetings, and establishment of appointments and remuneration committee.
