The Kuala Lumpur Tin Market (KLTM) was incorporated on June 28, 1984 as a company limited by guarantee pursuant to the Malaysian Companies Act, 1965. It opened for trading on October 1, 1986 replacing the 75-year-old Penang Physical Market. The KLTM is a physical tin market where buyers and sellers transact business directly.
It originally adopted the open outcry system where buyers and sellers meet to transact business on the floor by open competitive trading, similar to the "Gold Fixing" system.
However, since 17 September 2001, the KLTM has migrated to an on-line electronic trading to replace the open outcry trading system. The market starts daily at 10:30am, Malaysian time, where bids and offers are matched and balanced to arrive at an equilibrium price, electronically. Only trading members of the KLTM can trade on the exchange.
OBJECTIVE AND FUNCTION
The Objects for which the Company is established are;
a) To establish administer and provide facilities for a Market (hereinafter called "The Market") for the determination each business day of a price for newly refined Tin of Malaysian and other acceptable origin. Such price to be arrived at in accordance with the procedures set out in the Rules of the Market from bargains made therein in the course of the purchase and sale for prompt delivery of Tin as aforesaid.
b) To frame and to enforce such Rules, By-laws, Regulations and Contract Conditions as may be necessary to achieve any of the Objects herein.
c) To regulate dealings in the Market so as to ensure that a fair and representative price is seen to be established each business day and that all bargains made in course of dealings in the Market are honoured by the parties thereto, or failing which that adequate monetary compensation is forthcoming from any defaulter out of guarantees entered into as a condition precedent to trading in the Market.
d) To acquire by purchase leasing or otherwise any interest in real estate or property whether moveable or inmoveable and in any land or any communication and other ancillary facilities necessary for the pursuance of any of these objects provided that the Company shall not acquire any land without the licence from the Minister charged with the responsibility for companies.
e) To employ, retain or otherwise secure the services of any person or persons, firm or company in the pursuance of these Objects and to remunerate the same out of the assets of the Company in such manner and to such amount as the Company deems fit.
f) To provide and to administer a service for the determination of any dispute arising from the formation of, or compliance with, any contact made in accordance with the Regulations of the Market by process of Arbitration, Conciliation or Mediation. In pursuance whereof to set up and to maintain Panel of Arbitrators and Mediators.
g) To borrow or raise money upon such terms or on such security as the Company may consider expedient and in particular by the issue of deposit notes, debentures or debenture stock (whether perpetual or not) and by the mortgage or charge of all or any of the Company’s property and to secure the repayment or any money borrowed, raised or owing by way of mortgage or charge upon the whole or a part of the property, undertaking or assets of the Company both present and future.
h) To invest monies of the Company surplus to immediate requirements in or upon such investments, securities or property in Malaysia as may be thought fit subject to such conditions and such required by the law of Malaysia.
i) To pay all costs, charges and expenses incurred or sustained in or about the promotion and establishment of the Company, or which the Company shall deem to be in the nature of preliminary expenses and to remunerate in such manner as the Company shall see fit any person, firm or company rendering services to the Company in or about its formation or promotion.
j) To sell, exchange, lease, dispose of, turn to account or otherwise deal with the whole or any part of the undertaking of the Company for such consideration as the Company may agree.
k) To draw, make, accept, endorse, discount, negotiate, execute and issue promissory notes, bills of exchange, bills of lading, scrip warrants and other transferable or negotiable instruments.
l) To publish or cause to published from time to time in any language such statistics and other information as may be considered relevant concerning the Market and to publish each business day the price for Tin arrived at by way of dealings in the Market on that day.
m) To maintain liaison with the various Authorities in Malaysia and to enter into arrangements with the Governments, State Governments or any authority supreme, municipal, local or otherwise and to obtain from such Governments or Authorities any rights, concessions or privileges as may seem germane to all or any of these Objects.
n) To establish and to maintain contact with such overseas government, international and professional bodies, markets and exchanges, press and other information services as are of relevance to the Market.
o) To oppose any proceedings or applications in whatever form as may appear calculated directly or indirectly to prejudice the Objects or the interests of the Company.
p) To transact any lawful business in aid of Malaysia in the prosecution of any war or hostilities in which Malaysia is engaged.
q) To subscribe to and to grant donations for patriotic and charitable purposes.
r) To all such lawful things as the company may consider conducive or incidental to the pursuance of these Objects or any of them.
s) To assist foreign governments, international and professional bodies, exchanges and such other entities, organisations and bodies involved in the mining industry in the establishment of markets outside of Malaysia, to invest in such or similar markets, and to provide such or similar markets with such regulatory, administrative, dispute resolution and other related services on such terms as may be agreed upon.
Provided always the Company shall not support with its funds any political organisation or any activities or endeavour to impose on or procure to be observed by its members or others any regulations, restrictions or conditions which if made an object of the Company would make it a trade union within the meaning of the Trade Union Act AND further provided that the provisions of the Third Schedule of the Act shall not apply to the Company and the provisions contained in Clause 3 of the Memorandum shall be read and construed without reference to the provisions of that Schedule.
The detailed objectives, functions, activities and dealings of the KLTM are spelt out in the following documents:
1. Memorandum and Articles of Association of the KLTM
2. Rules of the KLTM
3. The KLTM Manual of Trading Procedures
4. KLTM Rules and Regulation on Electronic Trading
5. KLTM Electronic Trading User Manual
Membership of the KLTM is open to corporate bodies and firms, which are incorporated in Malaysia in accordance with the provisions of the Companies Act 1965, with a minimum paid-up capital of RM250,000.00. Any corporate body or firm, which by some reason of its domicile does not meet the requirements for membership, may be admitted at the discretion of the Board. There are two categories of membership namely, Ordinary and Associate Members.
Comprise Trading and Non-trading Members. Trading Members can trade directly on the KLTM but required to deposit a RM1.0 million bank guarantee. Non-trading Members can only trade through Trading Members.
Cannot trade on the KLTM but can do so through Trading Members
Presently, there are ten Ordinary members and one Associate member on the KLTM, namely:
1. Malaysia Smelting Corporation Bhd (Trading member)
2. Toyota Tsusho (M) Sdn Bhd (Trading member)
3. RMT Metals Sdn Bhd (Non Trading member)
4. Bhatt Enterprise Sdn Bhd (Trading member)
5. P.T Timah TBK (Trading member)
6. A&M Group Limited (Trading member)
7. Rahman Hydraulic Tin Sdn Bhd (Non Trading member)
8. Yuntinic Resources Inc (Trading member).
9. Posco International Malaysia Sdn Bhd (Trading member)
10. East Rise Corporation Limited (Trading member)
1. Hedd Industries (Malaysia) Sdn Bhd (Non Trading member)
Ordinary Membership Fees
Each member pays RM5,000 as entrance fee, and an annual subscription fee of RM5,000.
Associated Membership Fees
Each member pays RM2,000 as entrance fee, and an annual subscription fee of RM1,000.
BOARD OF DIRECTORS
Dato' Seri Dr. Mohd. Ajib Hj. Anuar
Yuntinic Resources, Inc
Kuala Lumpur, Malaysia
Dato' Abdul Malik Kadir
RMT Metals Sdn Bhd
Dr. Mohd Mokhtar bin Tahar
Ministry of Water, Land and Natural Resources
Mr. Chong Kah Yin
Toyota Tsusho (M) Sdn Bhd
Kuala Lumpur, Malaysia
Dato' Dr. Patrick Yong Mian Thong
Malaysia Smelting Corporation Berhad
Kuala Lumpur, Malaysia
Pak Agung Nugroho Soeratno
P.T Timah (Persero) TBK
Tn. Hj. Muhammad Nor Muhammad