ARCHITECTURE STUDY I REVIEWED ARCHITECTURE DOCUMENTATION II INTERVIEWED:

1. ARCHITECTURE STUDY • I REVIEWED ARCHITECTURE DOCUMENTATION • II INTERVIEWED: • MANAGEMENT PERSONNEL • DATA PROCESSING PERSONNEL • SYARIKAT TELEKOMS MALAYSIA (SM) PERSONNEL • IBM PERSONNEL • III ANALYSED FINDINGS & REVIEWED WITH DATA PROCESSING • PERSONNEL • IV PRODUCED MANAGEMENT PRESENTATION • V PREPARED AND SUBMITTED WRITTEN REPORT

2. C&L ARCHITECTURE EXPERIENCES • * FEW BANKS USING HOT BACKUP OF MAINFRAMES • * CONTINUOUS RUNNING SYSTEMS WIDELY USED FOR HIGH RELIABILITY APPLICATIONS • * TYPICAL U.S.A. BANK SERVICE LEVELS — INTERRUPTIONS • 98% AVAILABILITY (1% PROCESSING, 1% TELECOMMUNICATION) - INTERRUPTION MANAGEMENT OBJECTIVE < 30 MIN. PER • EVENT • RELIABILITY MANAGEMENT - SYSTEMS TESTING OF RELEASES (SYSTEMS & • APPLICATIONS SOFTWARE) - FREQUENCY < 1 PER WEEK • TYPICAL SERVICE LEVELS — DISASTERS • ONLINE CRITICAL PROCESSING • - 1 DAY RECOVERY • - OTHER PROCESSING • - 1 WEEK DELAY FOR MOST APPLICATIONS (UNTIL COLD SITE POPULATED)

3. SERVICE LEVEL REQUIREMENTS • * EXECUTIVE DIRECTOR • - EXCELLENT RESPONSE TIME EXCEPT AT 1 OR 2 PEAK/PEAK PERIODS PER YEAR • * GENERAL MANAGER, TREASURY • 99% AVAILABILITY BUT WILL SETTLE FOR 98% IF OUTAGES ARE CONSISTENT AND OF SHORT DURATION • - EXCELLENT RESPONSE TINE EXCEPT AT AM UNUSUAL PEAK/PEAK PERIOD • * MANAGER, METHODS & SYSTEMS • - INTERRUPTION DURATIONS < 1 HOUR (99% AVAILABILITY ) • - NUMBER OF INTERRUPTIONS PER MONTH ≤ 2 (99% AVAILABILITY )- EXCELLENT RESPONSE TIME DURING MONTHLY PEAKS • * INTERNAL AUDIT • - ATM INTERRUPTION DIJRATION 2 HOURS (DURING BANKING HOURS) • SERVICE LEVEL CONPUTAT1ONS • (10 HRS/DAY: 25 DAYS PER MONTH OF BRANCH OPERATION S) • 98% = 5 HRS DOWN PER BRANCH PER MONTH • (½ DAY PER MONTH) • 99½% = 1 HR DOWN PER BRANCH PER MONTH

4. APPLICATION PROCESSING REQUIREMENTS • * EXECUTIVE DIRECTOR • — MANAGEMENT INFORMATION SYSTEM — CUSTOMER INFORMATION SYTEM — EFT SHARING A FEW YEARS AWAY • * GENERAL MANAGER, ADMINISTRATION • — EXECUTIVE INFORMATION SYSTEM (OPERATIONS & FINANCIAL) — CUSTOMER INFORMATION SYSTEM • * GENERAL MANAGER, TREASURY • — OWNERSHIP RESPONSIBILITY ASSUMED BY SPECIFIC USERS • (NEEDED FOR APPLICATION PROCESSING SERVICE LEVEL AGREEMENTS AND RELEASE MANAGEMENT APPROACH) • * EDP AUDIT • — TIGHT CONTROL OF DIAL IN CAPABILITIES • * DOMESTIC BANKING • — CUSTOMER INFORMATION SYSTEM — LOAN ORIGINATION AND PROCESSING SYSTEM • * OTHER POSSIBLE SYSTEMS TO BE IDENTIFIED IN IS PLAN • — PROPERTY/BUILDING ASSET REGISTER/MANAGEMENT SYSTEM — STORES INVENTORY SYSTEM — ETC.

5. OTHER FINDINGS • * EXECUTIVE DIRECTOR • — MAJOR EFT, POS, AND HOME BANKING NOT EXPECTED FOR • SEVERAL YEARS • * EDP AUDIT • - STAFF SHOULD BE DEDICATED) TO A CENTRE • (ACCESS TO ONE SITE DOES NOT AUTHORISE ACCESS TO OTHERS) • - OFFSITE STORAGE ON ALTERNATE SITE IS ACCEPTABLE • * IBM • — HIGH AVAILABILITY PROGRAM REQUIRES: • INTEGRATED RELIABILITY MANAGEMENT PROGRAM (HARDWARE, FACILITIES, SYSTEMS SOFTWARE, APPLICATIONS SOFTWARE AND TELECOMMUNICATIONS) • — INTERRUPTION MANAGEMENT PROGRAM (TRAINING AND • PROCEDURES FOR RAPID RESTART)

10. TELECOMMUNICATION FINDINGS • * DISSATISFACTION WITH TELECOMMUNICATION FAULTS CAN BE DUE TO • SEVERAL CAUSES: • LOCAL LINES - POWER SUPPLY • MODENS/MULTIPLEXORS - WEATHER • TRUNKROUTE - HUMAN ERROR • * MICROWAVE TRUNKROUTES RELIABILITY • 99.97% — 99.99% • * COST OF TELECOMMUNICATIONS SIGNIFICANT • DATA - APPROXIMATELY $300,000 PER ANNUM VOICE - AT LEAST DOUBLE DATA COMMUNICATIONS COSTS • * TELEKOMS IS WILLING TO COOPERATE TO SOLVE BRANCH AVAILABILITY • PROBLEM • BRANCH DOWNTIME* NUMBER OF BRANCHES • <2% 64% • 2—5% 19% • 5—10% 12% • >10% 5% • * 10.00 AM — 3.00 PM, MON. — SAT. (THROUGHOUT 1986) • CENTRAL SITE COMPUTER DOWNTIME OVER PERIOD AVERAGED 2%

11. OTHER ISSUES IBM CAPACITY PLANNING (SHARE GUIDELINES) ADD MEMORY TO KEEP PAGING RATE BELOW 35 PATH& ACTUATOR REQUIEMENTS (3380 SERIES DASD)

12. OTHER ISSUES (CONT’D) • DATA BASE MANAGEMENT SYSTEM (DBMS) IMPLEMENTAION • - EFFECTIVE & EFFICIENT DBMS IMPLEMENTATION REQUIRES • EXTENSIVE EXPERIENCE AND TIME • CONVERSION OF EXTENSIVE APPLICATION PORTFOLIO NORMALLY IS A • FIVE YEAR PROGRAM • - FEW DBMS PACKAGES ARE EFFECTIVE FOR BOTH HIGH VOLUME • PRODUCTION AND MANAGEMENT INFORMATION USAGE • SUGGESTED APPROACH • EVALUATE AND SELECT DBMS USING THE PRIMARY SELECTION CR1TERIA OF: • — ABILITY TO SUPPORT CL, CIS, ETC PACKAGES • — FUNCTION AND PERFORMANCE REQUIREMENTS OF MIS AND ONLINE • PRODUCTION SYSTEMS • 2) SELECT INITIAL APPLICATION (CL, CIS, ETC) AND IMPLEMENT • 3) PRODUCE EXTRACT PROGRAMS FOR KEY PRODUCTION FILES • 4) CONVERT KEY MANAGEMENT INFORMATION TYPE APPLICATIONS TO DBMS • 5) EVALUATE AND CONVERT TV FEASIBLE II1CIIVOLIJME ONLINE APPLICATIONS • (THEIR PROCESSING OFTEN DOUBLES MIP REQUIREMENTS)

13. OTHER ISSUES (CONT’D) • SUITABILITY OF TAR AS BACKUP SITE • ADVANTAGE: EXISTING & OPERATIVE SITE • DISADVANTAGES: QUALITY OF PHYSICAL BUILDING & SITE • — TOO SHALL TO HOLD COMPLETE THREE COMPUTER • CONFICURATION • — HIGH RISK SURROUNDING • — OLD, LOW QUALITY FACILITY • — SHARED BUILDING IN FUTURE • POTENTIAL FOR DISTURBANCE EFFECTING BOTH SITES • — CLOSE TO COURT HILL DATA CENTRE • — SAME KL TRUNK EXCHANGE • POSSIBLE SOLUTIONS • CONSTRUCT NEW SITE e.g. AT BANGI (HIGH COST) • 2) AWAIT A SHARED COMMERCIAL CONTINGENCY SITE (LOW COST)

14. SUMMARY OF KEY RECOMMENDATIONS CONTINGENCY PLANIING — PRODUCE CONTINCENCY PLAN BASED ON COLD BACKUP ARCHITECTURE AND COMBINED LEASED AND CIRCUIT SWITCHED NETWORKS DATA PROCESSING ARCHITECTURE — MOVE PRODUCTION DATA CENTRE TO COURT HILL — UPGRADE CURRENTLY OWNED COMPUTERS T0 CAPABILITY REQUIRED TO PROCESS VOLUMES AND APPLICATIONS EXPECTED OVER NEXT SEVERAL YEARS TELECOMMUNICATIONS ARCHITECTURE — TERMINATE LEASED LINES AT BOTH COURT HILL AND TAR — IMPROVE QUALITY OF SERVTCE TO BRANCHES CURRENTLY EXPERIENCING BELOW PAR SERVICE LEVELS (JOINT PROPERTY, DATA PROCESSING, TELEKOMS, AND C&L PROJECT) — INITIATE PILOT USAGE OF CIRCUIT SWITCHED NETWORK