Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad SUSTAINABILITY STATEMENT 31 Industrialised Building System (“IBS”) IBS is a technique of construction whereby components are manufactured in a controlled environment, either at-site or off-site, and transported, positioned and assembled into construction works. We recommend our clients to adopt IBS in their project, and we have an IBS design team backed by pre-cast concrete manufacturing plants to assist our client as early as at the development planning stage. For those developments which the involvement of our construction arm, Kimlun Sdn Bhd (“KLSB”), begins only at construction stage, KLSB will advise its client to convert some elements to IBS component/pre-cast components. KLSB actively creates awareness and receptiveness of IBS construction method among its clients as this method renders: (i) Higher quality products with lower wastage due to factory- controlled prefabrication environment. This reduces pollution which may be caused by construction waste, and lesser wastage of natural resources such as iron and cement; (ii) Shorten time of construction due to the introduction of prefabricated components replacing on-site construction. The reduction in construction period reduces the inconvenience caused to the public during construction period; and (iii) Lower reliance on foreign labour. This reduces the social impact arising from employing foreign labour for construction works. Production Reject We perform pre-production planning and production process assessment prior to the commencement of production of the products ordered by our customers, to minimize product rejection and machine and manpower idling time. By minimize product rejection, the return to shareholders will be enhanced, while lesser natural resources will be wasted. We have set a benchmark rejection rate of not more than 1% as a guide. For the year under review, we successfully kept the rejection lower than the benchmark rate with the actual rejection rate of 0.3%. We managed to reduce the rejection rate compared to rejection rate of 0.5% for the previous year. Occupational Safety and Health Safety and quality continues to be a priority in our operations. Occupational health and safety not only contributes to corporate goals but also plays a part in the social and ethical role of the organisation. We inculcate the culture of safety, health and environmental consciousness in our business operations, and provide and maintain safe systems of work, make arrangements for ensuring the safe use, handling, storage and transport of equipment and materials, as well as provide necessary information, instruction, training and supervision to our employees. Safety of our employees, customers, business associates and communities must be prioritized in all decisions making processes and shall not be compromised in any manner. In compliance with the Occupational Safety and Health Act (OSHA) 1994, KLSB has a team of SH personnel who are stationed in various construction sites to check and enforce implementation of the Group’s SH policies and procedures, and recommend appropriate compliance measures. This team is responsible to oversee the Safety and Health function matters of KSB at respective project sites. SPC is accredited with Occupational Health and Safety Management Certification (OHSAS) 18000, an international standard which provides a framework to identify, control and decrease the risks associated with SH within the workplace. It follows the guideline under the OHSAS 18000 as to its planning for hazard identification, risk assessment and SH management. The SH committee which comprises the senior management of SPC and representatives of production workers oversee SH matter of SPC. The SH’s activities include: • identify and assess the potential hazards in the workplaces, and summarised risks identified into a risk assessment report; • formulate emergency response plan; • recommend SH practices and protection equipment to manage the risk; • conduct induction training when contractors first enter into the new project site; • perform periodic tool box briefing which emphasize on SH matters and enforce the requirement of personal protective equipment; and • conduct workplace audit to identify SH compliance. Non- conformance will be recorded and any issue noted will be followed up for resolution. We also require our sub-contractors to ensure their workers comply with SH practices recommended by us. KLSB implements a reward and punishment system which is applicable to both our and our sub-contractors’ workers. Workers who have shown good SH attitude, proactive in SH matters and comply with our SH requirements, will be rewarded with monetary incentives to be decided by the SH Committee. Workers who do not comply with our SH requirement will be imposed with penalty. We provide appropriate personal protective equipment to our employees in accordance with their job requirements; have in place in every construction sites safety devices such as safety net for arresting falling or flying objects for the safety of people beyond or below the net, and fire extinguishers for fire fighting purpose. To relieve the financial burden of our employees in seeking medical treatment and ensuring medical treatment is sought timely, we purchase hospital and surgical insurance and personal accident insurance for our local employees, and workmen compensation insurance for our foreign labour. The following is the list of some of the safety and health trainings that our employees participated during the year under review: Total No of Training Training Subject Attendees Hours Effective Safety Health Committee 16 256 The Roles of OSH Professional in Crisis Recovery Phase 1 16 Overhead Gantry Crane and Lifting Safety 11 176 Occupational & Workshop on Fall Prevention 9 144 (cont’d)