Chemical Company of Malaysia Berhad Annual Report 2019

| Sustainability Statement | On 7 March 2019, illegal chemical waste was dumped into Sungai Kim Kim in Pasir Gudang releasing toxic fumes which affected some 6,000 people and saw 2,775 victims, mostly school children from the 110 schools in the area, needing hospitalisation. Once alerted, the Pasir Gudang Municipal Council and members of PAGEMA immediately swung into action. CCM’s CES teams lent support by ferrying affected students and public from various schools and housing areas to the medical base, health clinics and hospitals. We also served as the PAGEMA secretariat and provided other resources including ambulances, medical supplies and personal protective equipment. A second similar incident recurred in June 2019 and our CES teams once again responded immediately with the necessary support. ENRICHING COMMUNITIES As part of our efforts to elevate communities, we organise various community engagement initiatives on an annual basis and provide employment opportunities. Our 2019 initiatives included the following: CCM Stem Up Challenge One of the flagship community programmes that we are supporting is the CCM STEM UP Challenge. This sees CCM encouraging secondary students to take up STEM (Science, Technology, Engineering and Mathematics) so that they are well prepared to adapt to rapid technological advancements and thrive in a technology-driven work environment. CCM has allocated approximately RM90,000 with the intention of creating greater awareness of STEM amongst students. The 2019 programme saw participation from 2,250 secondary students from 45 secondary schools in the Kuala Muda/Yan District. In FY 2019, we expanded the STEM UP programme through the CCM STEM UP X UTP initiative, our maiden collaboration with Universiti Teknologi PETRONAS. The inaugural event drew 1,000 students from primary and secondary schools across Perak who took part in an interactive competition. CCM PINTAR Programme The CCM Promoting Intelligence, Nurturing Talent and Advocating Responsibility (PINTAR) programme is a school adoption programme that aims to develop and enhance students’ reading, writing, understanding and speaking skills in English which ultimately helps improve their socioeconomic living standards. Initiated by Khazanah National Berhad, this programme has seen CCM adopt 15 primary schools nationwide that were located adjacent to our manufacturing facilities and premises. The year 2019 marked the end of the CCM PINTAR programme for us since we became involved in it back in 2007. Rakan Saintis Sungai (RSS) CCM The Rakan Saintis Sungai CCM or RSS initiative is an invaluable platform for youth to gain knowledge and hands-on skills on best practices to improve water quality and protect natural resources, particularly rivers. The two-day programme aims to develop young environmental warriors who are passionate about protecting the environment and creating a sustainable future. In FY 2019, two RSS programmes were held in Kota Tinggi, Johor and Kuching, Sarawak in conjunction with each state’s respective National Environment Day 2019 celebrations. Held for the fifth time in Johor, the RSS programme there attracted 60 students and 12 teachers, while the maiden RSS programme in Sarawak drew the participation of 60 students and 6 teachers. NURTURING OUR EMPLOYEES We undertake year-round employee engagement activities to strengthen ties with our employees and the camaraderie within CCM. Regardless of gender or race, everyone is given an equal opportunity in terms of their remuneration and ability to participate in senior management and leadership roles throughout our organisation. We conduct an employee engagement survey to better understand employee satisfaction levels and carry out structured learning and development programmes to allow our employees to learn, grow and share their knowledge and experiences. 40 CHEMICAL COMPANY OF MALAYSIA BERHAD

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