Chemical Company of Malaysia Berhad Annual Report 2019

I am pleased to inform that as a result of effective sustainability practices, CCM has been included as a constituent of the FTSE4Good Bursa Malaysia (F4GBM) Index for the first year effective June 2019. This globally-recognised index measures and acknowledges companies across the world who have been demonstrating strong Environmental, Social and Governance (ESG) practices. We are proud to be included among the companies listed on the F4GBM Index. Not only does this inclusion accord us international recognition for our sustainability practices, it also reinforces our position as a progressive and ethical company benchmarked against globally recognised standards. This year, we are publishing our sixth standalone SustainabilityReportwhichunderscores our practices and achievements on the Economic, Environmental, and Social or EES fronts. This year’s Sustainability Report is also the second we have produced that is line with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. A summary of our EES achievements can be found on pages 30 to 39 of this Annual Report. We intend to continue making good advances on the sustainability front as we implement tangible EES practices and entrench ourselves as a progressive and ethical company. With a strong balance sheet and well-run ultra- modern and high-capacity facilities, plus a strong focus on diversification and new growth areas, CCM is all set to steadfastly grow its Chemicals and Polymers Divisions. Despite the current economic challenges and a highly competitive business landscape, we are optimistic that we will regain our momentum to achieve long-term sustainable growth for our core businesses. Moving forward, the Board is cautiously optimistic that CCM will turn in a steadfast performance in FY 2020. However, given the downside economic risks are now more prevalent due to the severity of the impact of the COVID-19 pandemic to the global economy, we expect our performance to be weakened. IN APPRECIATION On behalf of the Board, I wish to convey my deepest gratitude to our shareholders, customers, business partners and various stakeholders for their continuous support and belief in CCM. I also wish to extend my utmost gratitude to CCM’s dedicated Management and staff for their unwavering loyalty, hard work and commitment to upholding excellence in all that they do. My sincere thanks also to my colleagues on the Board for their insights and for guiding the Group through both a challenging and opportunistic year. In FY 2019, there were multiple changes made to the composition of the Board with many people leaving and many joining us. I wish to convey my sincere appreciation to our Independent Non-Executive Directors, Dr. Leong Chik Weng who retired in May 2019 and En. Khalid Bin Sufat together with Dato’ Seri Ir. Dr. Zaini Bin Ujang who resigned in October 2019 and January 2020 respectively. My deep appreciation also goes to our Non-Independent Non-Executive Directors, Datin Paduka Kartini Binti Hj Abdul Manaf that retired in May 2019 and Dato’ Azmi Bin Mohd Ali who resigned in October 2019. Additionally, our Chief Financial Officer, En. Mohd Junaidy Bin Ab- Mutalib, resigned in May 2019. We sincerely thank each and every one of these individuals for their worthy contributions to the Group and wish them every success in their endeavours. Please join me in welcoming our four new Independent Non-Executive Directors, namely Datuk Anuar bin Ahmad and YM Raja Azura Binti Raja Mahayuddin who both joined us in June 2019, as well as En. Hasman Yusri Bin Yusoff and Dr. Leong Yuen Yoong who both joined us in September 2019. We also welcome on board En. Zainal Abidin Bin Jamal who joined us as a Non-Independent Non-Executive Director in September 2019. We certainly look forward to their insights and contributions. I also wish to call upon all of our stakeholders to lend us their tireless and continuous support. On our part, we at CCM will continue to work hard to lay down the necessary foundation for our future and sustainable growth for the benefit of all. Thank you. Dato’ Idris Bin Kechot Chairman 17 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION