AAM’s 51st Annual General Meeting was held recently at Holiday Inn, Kuching on March 25, 2006. A total of 409 members attended the AGM. Below are excerpts of the chairman’s opening address:
“The Automobile Association of Malaysia (AAM) recorded a net deficit of RM309,984 for the Financial Year 2004/2005 compared to a net surplus of RM357,984 in the previous Financial Year, thus representing a decrease in total income by RM36,510.
AAM is facing stiff competition from insurance companies. To date a total of 38 competitors are competing with the AAM. The Ordinary Membership Fee has remained at RM60 per annum since 1996. There is a need to increase membership subscription by a small margin in order to continue operating at the current level of efficiency and effectiveness.
As part of AAM’s aggressive campaign to improve its services to the public, four more service outlets were opened at shopping complexes during the period under review. These include South City Plaza on August 16, 2004, Midlands Penang on September 1, 2004; Bukit Bintang Plaza KL on December 16, 2004 and Tropics Shopping Centre on June 6, 2005. Plans are now on the drawing board to increase AAM, service outlets in the East Coast and possible expansion into Sabah.
HIGHEST NUMBER OF MEMBERS
As at June 30, 2005, the number of active cardholders nationwide was recorded as to 243,561 members. During the period under review, AAM’s Marketing Department launched the AAM-AHA Super Savers Campaign, which is a strategic alliance with the American Home Assurance Company offering a special rate on AAM membership to AAM AutoPal comprehensive motor insurance package to subscribers.
New membership formats including the AutoPal Assist, AutoPal Assist priority, City Card and MyRescue Card with competitive pricing were introduced to boost membership.
The Insurance Department continued its steady growth during the period under review by 3.61%, despite the continued decline in vehicle price. Non-motor business saw a healthy increase of 26.3% with the AAM Assist.
BREAKDOWN SERVICE
AAM’s 24-hour Breakdown Service is the most highly utilized service. A total of 83,231 breakdown services were rendered to members from July 2004 to June 2005. The service is backed up by other supplementary services such as vehicle inspection and valuation, car care courses, battery delivery services, Road Transport Department-related services as well as motor and non-motor insurance services.
Plans are currently in the final stages for the construction of AAM’s own premises in Shah Alam. All the services would be housed under one roof to offer better services.
AAM has contributed its services towards various motoring related issues including Road Safety Awareness Campaign, Vehicle Maintenance, Safe Driving Habits, the establishment of Standard Operational Guidelines for private tow-truck operators, Licensing Programmes for private tow-truck operators and anti-car theft campaigns.
On the motorsports front, AAM is working closely with the Ministry of Sports and the Motorsports Commission of Malaysia to promote the sport of motor racing in Malaysia.”
