Chemical Company of Malaysia Berhad Annual Report 2019

| Chairman’s Statement | To ensure that the element of independence is reinforced, Dato’ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah has been designated as the Senior Independent Director. In this role, he serves as a sounding board to the Chairman and acts as an intermediary for other Directors when necessary. The presence of a Senior Independent Director provides an additional channel for Independent Directors and other Directors to voice any opinions or concerns that they believe have not been properly considered or addressed by the Board or which they feel may not be appropriate to raise in open forum. More details of these measures among others can be found in the Corporate Governance Overview Statement on pages 68 to 89 of this Annual Report. The Board is continually reviewing the Group’s prevailing risk management framework and ensuring that it aligns with the strategic direction of the Group. Now that we have streamlined our businesses and are focused on the Chemicals and Polymers segments as our principal activities, the Group’s risk management framework has had to adapt to these changes. To facilitate this process, we are working on deploying a more data-driven risk monitoring and reporting mechanism which can support and provide more granular insights for fully informed decision-making. By tapping advanced data analytics capabilities, we expect to have greater visibility into the challenges associatedwithmanaging key operational, regulatory and supply chain risks. To reinforce top-down and bottom-up risk management communications, the Board and the Risk Management Committee are proactively engaging the Executive RiskManagement Committee as well as the Group Risk, Integrity and Assurance Department in regular dialogue. As we move forward in these areas, we are making good progress by way of tightening the risk management framework and intensifying the risk dialogue at all levels. Today, the agenda of sustainability is at the heart of CCM’s business strategy. The Board acknowledges that we have a responsibility to secure the Group’s future and to ensure sustainable value creation for all our stakeholders. As a conscientious corporate citizen, we are sincerely committed to balancing our economic performance with responsible environmental and social considerations to ensure we deliver sustainable results. We have undertaken several programmes to enrich and elevate the wellbeing of communities. Among the flagship community programmes that we are supporting are the CCM PINTAR programme and the CCM STEM UP Challenge. From the time of our involvement in the CCM PINTAR initiative (2006- 2019), we have adopted and supported 15 primary schools nationwide that were located adjacent to our manufacturing facilities and premises. Under the CCM STEM UP Challenge, we are encouraging secondary students to take up STEM (Science, Technology, Engineering and Mathematics) courses in order to address the declining pool of talent in high-level scientific and technological fields. In FY 2019, we expanded the programme through the CCM STEM UP X UTP initiative, a collaboration with Universiti Teknologi PETRONAS. As a strong advocate of greater safety within the chemical industry, we are committed to ensuring a safer environment for our employees, customers and the communities that we operate in. Our subsidiary, CCM Chemicals Sdn Bhd, has trained professional Chemical Emergency Service (CES) teams that not only provide advice on safety measures and the remedial actions to be taken when a chemical emergency occurs, but are ready to swing into action at a moment’s notice. Today, the CES teams are proactively collaborating with parties such as the Fire and Rescue Department Malaysia and the Pasir Gudang Emergency Mutual Aid (PAGEMA) team to respond to emergency situations as and when required. We continue to strengthen our capabilities in these areas as part of our efforts to keep communities safe. CCM STEM UP Challenge at Sungai Petani, Kedah 16 CHEMICAL COMPANY OF MALAYSIA BERHAD