Founder & Executive Chairman’s Message Print E-mail


As we entered Financial Year (“FY”) 2020 still reeling from the crippling effects of the relentlessly stubborn 2 year old US-China trade-war, another worldwide crisis (Covid-19 pandemic) hit out of the blue in February engulfing the world with even worse crippling effects on worldwide economies, human sufferings due to various draconian movement-control-orders (“MCOs”)/lockdowns across all nations.

Without any exception, our Group were not spared of the pain and hardship that permeated our industry with unprecedented supply interruptions and business uncertainties in the midst of hindered communications and the lack of face-to-face/close interactions with business partners. On top of that, a litany of different phases of MCOs and/or lockdowns imposed throughout FY2020 by most countries further exasperated the business communities thus hurting business continuity and growth opportunities to most industries worldwide. Notwithstanding the overwhelming blows caused by the double-whammy (Covid-19 pandemic and trade-war) that descended on all businesses, I am happy to report that as tough as the business environment had been, we proved ourselves tougher in overcoming all obstacles with a set of satisfactory financial performances and excellent health and safety record to close FY2020.

As we bid farewell to the treacherous and highly challenging FY2020, it is imperative for our Group to register our heartfelt gratitude and deepest appreciation to our Group’s outstanding leadership and management teams headed by our 7 star CEO (Dato’ Heng), CFO (Ng Kok Choon) and VP of Business and Operations (Heng Charng Yee) for their contributions in leading and steering our Group safely and profitably to achieve a set of stellar financial results and operational excellence.Upon reflection, FY2020 could have been a year when our Group’s business continuity and viability succumbed to such unsurmountable challenges but for the herculean and miraculous efforts spearheaded by our CEO Dato’ Heng and our Group VP of Business and Operations Heng Charng Yee in first of all, passionately and sacrificially lobbying and winning our governmental approvals for our Electrical and Electronics (“E&E”) industry to operate with skeletal workforce during all phases of MCOs, while leading and motivating our complete workforce in devoting their hearts and souls towards producing near-perfect results and services which delighted our key customers with our 100% on-time delivery to their order requirements in spite of a spate of constraints caused by Covid-19 pandemic related lockdowns, MCOs, supply-chain interruptions, etc. It was with such outstanding leadership and team effort that we were recognized as a key partner to our most important customer. In the midst of all the challenging activities, our dedicated teams of technical and operations personnel extended their contributions to our Group with an impressive RM6 million capital expenditure ("CAPEX") avoidance through various productivity improvement and improvisations which further facilitated our Group to close FY2020 with RM227.5 million in sales and net profit of RM50.8 million, representing a heart-warming 14% improvement over the net profit of FY2019, further enabling handsome dividend payout to shareholders of RM50.2 million which translates into ≈100% of the net profit for the year. Group cash flow position remained healthy at RM163.7 million (versus FY2019’s RM146.2 million). We have also successfully paid off the USD loan to zero with the final loan instalment of USD1 million paid in January 2020.

In the business sustainability front, our Group continued to strengthen our systems and processes in the management and coordination of environmental, social and governance demands to ensure responsible, ethical and ongoing success for our Group. While significant resources were deployed in the continuous education, research and execution towards compliances of a host of revamped statutory, regulatory and reporting requirements in the Malaysian Corporate scene, other key focuses on business sustainability included two important categories concerning the effects on the environment as well as on society were executed while we continued to strive towards excellence in board diversity, community development efforts, conservation of natural resources and carbon footprint – all of which we believe will improve the wellbeing of our employees and our stakeholders, our ability to provide delightful customer services/satisfaction as well as our growth opportunities.

From the investor relations perspective, we have partnered well in connecting with many regional and Malaysian investors via limited physical meetings in Kuala Lumpur on top of dozens of conference calls and/or video conferences (Zoom, Webex or Microsoft Teams) in replacement of the usual face-to-face meetings due to the year-long Covid-19 pandemic outbreak with MCOs and border-closures. Thanks to our shareholders’ confidence and support, Gtronic stock-counter remained steady and active throughout most of FY2020 with GTB’s market capitalization standing at approximately RM1.8 billion at the close of FY2020 versus RM1.6 billion at the end of FY2019.At this juncture, I would like to reiterate our Group’s heartfelt gratitude and sincerest appreciation to our outstanding CEO Dato’ Heng as well as our VP of Business and Operations Ms Heng Charng Yee, in leading and motivating our highly motivated and well-aligned workforce towards delivering a set of respectable performance indicators for FY2020 in spite of the double-whammy crises caused by the US-China trade war and the Covid-19 pandemic throughout the whole year of 2020.

By the same token, it is incumbent on our leadership and management team to take this opportunity to convey our heartfelt gratitude and sincere appreciation to each and everyone of our highly respected board members for their meticulous guidance, timely support and invaluable motivation provided to our teams and workforce throughout all these past years.

Last but not least, on behalf of Globetronics Technology Bhd and group of companies, I would like to thank each and everyone of our shareholders and stakeholders for your unfailing encouragement and support to us over the past years and many more years to come.

Thank you all very much!!



It has always been the Group's commitment to reward our loyal and supportive shareholders by returning the optimal amount of our net profit (after factoring in new CAPEX and new business opportunities’ needs) to our loyal and supportive shareholders, as demonstrated in the chart below. As mentioned before, FY2020’s dividend payout of RM50.2 million was about 100% of our Group’s net profit for the year at RM50.8 million.

While we take great pride and honour in being able to reward our loyal and most supportive shareholders with the best dividend payout possible, we also take great care to ensure that our Group have sufficient funds to invest in subsequent years’ CAPEX and business needs. For that, I am happy to report that this objective continued to be upheld with our year end cash and bank balances remaining healthy at RM163.7 million.

Details of FY2020’s dividend payments are as follows :

  1. Year 2019’s third interim and special dividend of 3 sen per share amounting to RM 20.1 million on 26 March 2020;
  2. Year 2020’s first interim and special dividend of 2 sen per share amounting to RM 13.4 million on 2 July 2020; and
  3. Year 2020’s second interim and special dividend of 2.5 sen per share amounting to RM 16.7 million on 3 December 2020.



While emphasis continued to be placed on our management team and board members in the areas of continuous education, research and execution towards compliances of a host of revamped statutory, regulatory and reporting requirements in the Malaysian Corporate scene like Bursa Malaysia, Securities Commission, Companies Commission of Malaysia, Inland Revenue Board, Malaysian Accounting Standard Board, Bank Negara, etc., all other necessary resources have also been allocated proactively and in timely education, training, documentation and implementation of new or revamped ESG-initiatives with the end-inmind of strengthening our systems and processes in the management and coordination of environmental, social and governance demands to ensure responsible, ethical and ongoing success for our Group including board diversity, community development efforts, conservation of natural resources and carbon footprint – all of which we believe will improve the wellbeing of our employees and our stakeholders.

In spite of the travel and movement constraints along with their stringent standard-operating-procedures (“SOPs”) which hindered major business transactions with delays or suspensions in the start-up or transfer of new businesses and new projects, our Group still managed to persevere with many other major accomplishments beyond what have been stated.

Most notable of our FY2020 breakthrough was in our Industry 4.0 initiative which we were awarded MIDA’s Industry4WRD funding in creating a comprehensive ecosystem through our Group’s industry 4.0 roadmap and to ultimately transform and enhance our Group’s manufacturing to even higher value-added, high technology, knowledge-intensive and innovation-based to move up our Group’s value chain to be an active participant in the global ecosystem.Another notable accomplishment in our corporate governance front was in our Group’s full implementation of anti-corruption and bribery prevention program in view of the Corporate Liability Provision Section 17(A) of Malaysian Anti-corruption Commission 2009 (Amendment 2018) ("MACC Act") with finalization of documentation and policies duly completed for further enhancing the overall transparency of our Group.

In our Group’s fight against the spread of Covid-19 pandemic, full organization resources were allocated in ensuring our employee’s safety and wellbeing with workfrom- home arrangements, daily sanitization, providing free face masks and implementing social distancing measures at our workplace, while hostels provided for our foreign workers adhered strictly to their weekly hostel sanitization to ensure clean and safe living conditions. Spot audits were carried out to ensure compliance to all Covid-19 SOPs and even the factory buses that transport the workers to the factory are sanitized twice daily. We have tested all our foreign workers with first tests started in December 2020 with zero Covid-19 incidents with our Group throughout FY2020. Our Group also contributed 13,000 face masks to eight police stations in Penang and another 40,000 face masks to Penang General Hospital to assist in the adequate supply of Personal Protection Equipment (“PPE”) for our front liners.

On the social front, we put our focus on the United Nations Sustainable Development Goal 4 to “Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”. Many of our sponsorship programs are geared toward the promotion of Science, Technology, Engineering and Mathematics (“STEM”) with our annual RM20,000 donation to them, as well as other sponsorship towards technical development projects like robotics in partnership with our governmental efforts to build up the potential technical workforce pool for our country.


Without exception, the onslaught of Covid-19 pandemic and the 2 year old US-China trade war had also taken its tolls on our Group’s growth opportunities throughout FY2020. More than a couple of our Group’s new business opportunities that were on the verge of taking off had to be put on hold while waiting for clarity and normalcy to return to the global business-scene but to no avail by the end of FY2020. As a result of various movement controls and/or lockdowns including extensive border closures imposed by most countries which our customers operate in, many of our Group’s codevelopment projects were delayed as we mutually agreed with our business partners to refrain from all on-site-visits in order to protect the health and safety for our respective organizations’ human resources as well as for our partnership’s long-term business continuity and successes. While such bold and uncompromising health-and-safety measures taken did hurt our FY2020’s financial performances on top of shaving off part of the business prospects in FY2021, there was never any hesitation on our part for such decisions to be taken in order to ensure the wellbeing and safety of the people and community in which we operate in.

After exactly one year after the spread and the onslaught of Covid-19 pandemic hitting the world stage in February of 2020, we started to hear about the fantastic news of the availability of various vaccines with more than 90% efficacy with enough projected quantity available for most of the world’s population to be vaccinated to achieve herd immunity effect, thus enabling normalcy to return to global businesses and communities alike by the end of Year 2021.

With this good news in mind, we believe for most of our business-partners and for the countries in which they reside in, normalcy should return to all businesses and in most industries by the 3rd quarter of FY2021. While this might be a bit late in restoring optimal financial results and business opportunities for our Group in FY2021, it should start to reset our Group’s business prospects to its strong foundation by FY2022 and onwards.

As for the prospects and outlook of our Group’s business and product platforms which are mainly in the sensors, light-emitting-diodes (“LEDs”), optics and quartz timing devices, they are essential components or products that go into various application along The Internet-of-Things (“IoT”) technologies which are used in process automation, home automation, smart devices, autonomous vehicles, Artificial Intelligence (“AI”) and others to deliver integrated smart solutions. Such integration of technologies will continue to drive phenomenal spending/consumption in end-users’ spending on IoT-solutions worldwide, the projection by Statista 2021 to see a 5.3-fold increase over the next 5 years from Year 2020 to Year 2025 as per below chart:


The applications of IoT look promising in the years ahead since such technologies will likely be used with other technological trends like AI and Augmented Reality ("AR") to deliver integrated smart solutions. The integration of technologies will create disruptions in different industries driving new opportunities, which fits perfectly with our current portfolio of miniaturized sensors, laser headlamps and many of the newly co-developed-products to strategically capture the increased demand in these areas in the years ahead.