Datasonic Group Berhad Annual Report 2020

Sustainability Statement (Cont’d) During the year, some of the key contributions/donations/corporate social responsibility (“CSR”) activities include:- 1. Donation to Bulan Sabit Merah Malaysia Kuala Lumpur in support of its Charity Golf Tournament 2019; 2. Sponsorship of ProgramFun Run Imigresen 2019 organised by Majlis Kebajikan dan Sukan Jabatan ImigresenMalaysia (MAKSIM); 3. Sponsorship to Yayasan Universiti Malaysia (YUM) Charity Hi-Tea with Tun Siti 2019 in support of YUM’s effort to help less fortunate students and researchers to overcome their financial setbacks and improve their academic & economic well-being; 4. Sponsored 3 units automated external defibrillator to St John’s Ambulance Malaysia ; and 5. Gold sponsorship of the Kayuhan Wanita event organized by Pertubuhan Pembangunan Wanita Putrajaya (PEWARNA) held on 26 October 2019. Challenges Ahead: Managing the Global Impact of the Coronavirus Disease (“COVID-19”) The profound impact of COVID-19 is being deeply felt across all companies and industries. In the face of this unprecedent situation, as a Company that values its employees as invaluable asset for success, Datasonic has continued to pay all employees full salaries for the months of March 2020 and April 2020, and also liaised with the respective government bodies and agencies for deferment of some of the monthly deductions, including PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) andMBSB (Malaysia Building Society Berhad), as temporary reliefs for all employees. So far, the Company has not laid-off any of its employees arising from the impacts of COVID-19. However, due to the slowdown in economy, we have implemented hiring freeze and carried out re-designation and/or re-structuring exercises to streamline our operations. We have also executed several cost-cutting measures and re-assessed priorities for internal CAPEX investments (e.g. solar system and ERP for factory automation) for monitoring and control of costs.   Our Preventive Measures and the “NewNormal” Global uncertainties resulting from the COVID-19 pandemic is likely to affect the future performance and sustainability of most businesses, including Datasonic’s. Nonetheless, we have implemented crisis management for business continuity and taken necessary preventive measures in excess of government guidelines to protect our employees and hopefully prevent the spread of the virus, as follows:- 1) Prior to the commencement of Movement Control Order (“MCO”):- i. Implemented Business Continuity Plan (“BCP”) on 16 March 2020, to ensure that operations are carried out with minimal disruptions within the scopes of business activities/essential services as approved by the authorities; ii. Created “Datasonic Dynamic – ERT” WhatsApp Group Chat on 17 March 2020 for dissemination of COVID-19 and/or Occupational Safety & Health related matters via WhatsApp to employees through Heads of Business Unit/Department; and iii. Circulated internal memorandums, “Malaysia – Restricted Movement Order 18 – 31 March 2020” and “Guideline onWorking fromHome” on 17 March 2020. 2) Amidst the MCO, from 18 March 2020 to 4 May 2020, i.e. 1 day prior to the resumption of Datasonic’s business operations on 5 May 2020:- DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 47