1. The annual subscription payable by members of the Kuala Lumpur Bar is presently fixed at RM100-00. The annual subscription has remained at RM100-00 for the last 30 years since 1981 (then it was the Selangor & Federal Territory Bar). When the Kuala Lumpur Bar was established on 01.07.1992, the subscription continued to be RM100-00 and has remained the same since then.
2. The two main sources of income for the Kuala Lumpur Bar Committee (KLBC) are the annual subscriptions and the BC Box rental.
2.1 With the implementation of the electronic filing system, the KLBC will soon be losing the revenue from the BC Box rental as electronic filing will reduce and eventually eliminate the need for BC Boxes. The annual revenue generated from BC Box rental is more than RM100,000-00 and losing this revenue would cause the KLBC to suffer a deficit as can be seen from the chart below (the figures are extracted from the last 5 years’ Financial Statements):
|
2010
RM
|
2009
RM
|
2008
RM
|
2007
RM
|
2006
RM
|
|
|
Total Income (excluding BC Box Rental)
|
1,026,856
|
961,277
|
994,366
|
1,038,251
|
974,552
|
|
BC Box Rental
|
136,890
|
140,700
|
148,125
|
140,500
|
135,575
|
|
Total Income
|
1,163,746
|
1,101,977
|
1,142,491
|
1,178,751
|
1,110,127
|
|
Less: Expenditure
|
1,069,702
|
1,018,195
|
1,105,853
|
1,155,344
|
1,057,432
|
|
Surplus
|
94,044
|
83,782
|
36,638
|
23,407
|
52,695
|
2.2 For the last 5 years, the annual subscription income remained about the same as can be seen from the chart below. About 90% of the subscription income goes to staff salaries, bonuses, EPF, Socso and office and auditorium rental and such expenditure will only increase and not decrease in particular staff salaries due to normal inflationary pressures. It is also essential for retention of staff to match market rates of private sector employment.
|
2010
RM
|
2009
RM
|
2008
RM
|
2007
RM
|
2006
RM
|
|
|
643,350
|
636,250
|
624,550
|
621,350
|
615,200
|
|
|
Percentage increase (est)
|
1.2%
|
←1.85%
|
←0.5%
|
←1.25%
|
←
|
|
Salaries, Bonuses & Allowances
|
438,849
|
401,635
|
371,586
|
363,126
|
350,050
|
|
EPF and Socso
|
57,052
|
52,162
|
48,416
|
47,608
|
45,788
|
|
Rental (Secretariat & Auditorium)
|
127,142
|
127,142
|
127,142
|
127,142
|
127,142
|
|
Total
|
623,043
|
580,939
|
547,144
|
537,876
|
522,980
|
|
Percentage increase (est)
|
7.25%
|
←6.1%
|
←1.75%
|
←2.8%
|
←
|
3. The financial state of the KLBC is not dire. The finances of the KLBC have been managed prudently and responsibly by all previous Chairmen of the KLBC. Many measures and initiatives have been put in place throughout the years to keep costs and expenses at a manageable level and at the same time to increase the level of non-subscription income. As a result, the KLBC has approximately RM900,000-00 in reserves.
But financially it would not be prudent or responsible to allow normal overheads and expenses to eat into the reserves which should only be utilised to invest in a fixed asset such as a building or for very special projects.
4. The current annual subscription of every other State Bar has surpassed RM100-00 (see chart below).
|
State Bar
|
(RM / per lawyer)
|
Membership Strength
(Estimated)
|
|
Johore Bar Committee
|
200-00
|
1,400
|
|
Kedah/Perlis Bar Committee
|
Subs – 120-00 / Social & Activities Fund – 80-00
Total: 200-00
|
600
|
|
Kelantan Bar Committee
|
130-00
|
470
|
|
Malacca Bar Committee
|
160-00
|
480
|
|
Negeri Sembilan Bar Committee
|
150-00
|
400
|
|
Pahang Bar Committee
|
150-00
310-00 for this year only to cover cost of renovation of its new building
|
330
|
|
Penang Bar Committee
|
200-00
|
1,200
|
|
Perak Bar Committee
|
150-00
|
680
|
|
Selangor Bar Committee
|
150-00
|
4,000
|
|
Terengganu Committee
|
120-00
|
260
|
5. Foreseeing an imminent loss of revenue from BC Box rental and the unavoidable annual increase in expenditure, it would only be prudent and responsible for us to seek an increase in the subscriptions at this stage and not wait for the KLBC to suffer a deficit before taking steps to address the situation by requesting for a much larger increase.
6. Looking at the last 5 years’ Financial Statements of the KLBC, it would appear that a sum equivalent to the revenue generated from the BC Box rental would be sufficient to cover the expenditure of the KLBC. As such the KLBC is only seeking an increase of the annual subscription by RM25-00, a figure which the KLBC hopes members would be able to accept.
7. The KLBC will be tabling a Motion at the forthcoming Annual General Meeting of the Kuala Lumpur Bar on 23.02.2012 to fix the Annual Subscription at RM125-00 and we sincerely hope that members will support the Motion.
Brendan Navin Siva
Chairman
Kuala Lumpur Bar Committee
2011/12