Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad SUSTAINABILITY STATEMENT (cont’d) 29 Category Business Growth Environmental MSM to address • Mechanised construction methods • Shortage of skilled workers • Inconsistency of quality of products and services • Cost control • Business Expansion • Consumption of natural resources • Waste management Our actions • Adoption of industrialised building system (“IBS”) construction method • Quality control teams (“QC Team”) which check and review quality of our works and products, benchmarking against established standard such as the Quality Assessment System in Construction (QLASSIC) quality rating system, Construction Quality Assessment System (CONQUAS), and recommend ways to improve weaknesses identified • Active negotiation and co-operation with sub- contractors and suppliers, implementation of the approved policies and procedures governing the tendering process and project management process to achieve cost efficiency, service quality and reliability • Materials budgeting prior to the commencement of project and review the materials consumed against the budget • Engagement of sub-contractors based on clearly identified scope of works, performance and basis of price • Internal and external training and seminar to update employees’ technical know how • Actively explore business opportunities outside our home base, namely Johor • Actively seek for new tenders via steps such as frequent checking to Singapore and Malaysia government’s websites for information on projects under planning or in the pipe line, and tender invitation advertisements in newspapers, to identify business opportunities and ensure timely preparation for bidding • Bid for projects in affordable housing sub-sectors which continue to see strong demand, and infrastructure projects • Bid for projects jointly with parties which have complementary strength to the Group • Participate in trade fair to create visibility • Adoption of IBS construction method as it leads to less wastage of materials; • Proper pre-production planning and strict production process control to minimise product rejection rate • Recyclable materials, if cannot be reused in our operations, will be channelled to recycling companies • Engage waste disposal companies that commit to dispose our construction waste in appropriate disposal sites i.e. not by way of illegal dumping • Large commercial grade waste bins at project sites to collect construction waste and non-construction waste to maintain cleanliness of project sites. The bins will be pulled out from the project sites at fixed intervals or as and when the bins are full, whichever is the earlier We have taken the following actions to deal with the challenges and MSM identified: