Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 10 OVERALL 2023 The main challenge facing the Group’s operations last year was the overall weakness in global demand in the front end semiconductor industry. This was especially the case for our semiconductor segment in the first half of the year where activities were sluggish. To that end, the Group took various measures to safeguard its profitability, namely managing its costs and at the same time continue to explore new opportunities. The Group’s engineering business, on the other hand, performed very well with a record breaking bottom line. This is a classic case of perseverance paying off in the long run. We continued to hold our annual executive team meetings where we reviewed the individual unit’s performances, exchanged ideas and set goals for the coming years. We set out business strategies and plans for each business unit according to their strengths, opportunities and market conditions. During the year, we also worked on exiting the non-strategic business such as our operation in Indonesia. It is still a work in progress and announcement, where necessary, will be made in due course. OUR WORKFORCE We believe we are where we are today due to our amazing team. We place strong emphasis on developing and bringing out the best in our employees. During the year, we continued to encourage our employees to acquire new knowledge through continuous learning to enable them to stay on top of the industry trends and continue to be the leader in the space we operate in. Various trainings, seminars, workshops, and networking activities were conducted to allow our employees to have the opportunities to learn and master new skills set. As always, we aim to be an employer of choice. To that end, we will continue to invest in our people through various performance-based incentives, competitive benefits and skills development programmes that allow for advancement opportunities within the Group. Every year, we will look into our employees’ compensation package and make adjustments to reflect their achievements and contribution based on meeting the key performance indicators that include both qualitative and quantitative measures. We believe that it is vital to ensure that all our employees are compensated fairly for their skills and hard work and at the same time be in line with the current market standards. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) AND SUSTAINABILITY ESG is an integral part of our company’s culture and strategy. We are focused on making a positive and sustainable impact wherever we are at, from the Board and the leadership team, across all our businesses and at all levels of our workforce. We strongly believe that acting responsibly and with integrity is the only way to build and manage a business over the long term. Environment – We are constantly looking at ways to further improve and see how we can make positive impact to the planet. Our strategy is underpinned by various sustainability goals and targets that will enable us to measure our progress toward reaching our vision. We have been working with our customers in addressing the environmental challenges, including the transition to a net zero carbon economy. Our research and development (“R&D”) team continued to focus on where we can improve and deliver solutions that maximise benefits to the environment and society. During the year, we continue to measure and look at ways where we can reduce greenhouse gas (“GHG”) emissions associated with our operation. We strive to minimise energy consumption in our workplace and at the same time improve on our operational performance in the areas of GHG emissions and energy, waste and water usage. In 2023, through our efforts and continued collaboration with our customers, since 2018, we have adopted the equivalent of 3,183,631 KW of electricity using solar energy, an accumulative savings of 394,517 tons of recycled DI-water, and accumulative savings of 460,807 kg of recycled waste in our operations. We have also set a long-term target of reducing our Emissions Intensity – to stabilise emissions with the aim to achieve Net Zero Emissions by 2050. For more details specifically on our environment and climate change efforts, please visit our website at www. frontken.com for the report titled “Frontken Sustainability Climate Change Report 2023”. CHAIRMAN’S MESSAGE (CONT’D)
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