Kimlun Corporation Berhad Annual Report 2020

SUSTAINABILITY STATEMENT MATERIAL SUSTAINABILITY MATTERS (“MSM”) In identifying our MSM which reflect our significant economic, environmental and social impacts, we have considered the following: (i) the nature of our business and our corporate strategy; (ii) risks assessment and risks scoring based on matrix developed pursuant to our enterprise risk framework; and (iii) our understanding of our stakeholders’ needs. Based on our assessment, the most significant MSM identified and categorised into four broad categories as follows: The construction industry is generally regarded as labour intensive, dangerous and polluting. Construction projects involve long periods of work and delivery, complicated processes and rely heavily on in-situ construction methods involving the use of formworks and a huge amount of wet trades. The main challenges faced by the industry players include shortage of skilled labour, quality of works, cost control as well as compliances with the laws and regulations in relation to safety, health and environment. Occupational safety and health is always a challenge as the industry has a high level of work site accident injuries and fatalities. Construction activities are also inherently harmful to the environment, impacting the environment with noise, dust, muddy run-offs, and significant amounts of waste. Business/Economic Growth t .FDIBOJ[FE DPOTUSVDUJPO method t 4IPSUBHF PG TLJMMFE workers t *ODPOTJTUFODZ PG RVBMJUZ of products and services t $PTU DPOUSPM t #VTJOFTT FYQBOTJPO Social Contribution t 8PSLQMBDF QSBDUJDFT t 0DDVQBUJPOBM TBGFUZ BOE health t $POUSJCVUJPO UP MPDBM community Environmental Management t $PNQMJBODF XJUI applicable laws and regulations t 8BTUF NBOBHFNFOU t $POTVNQUJPO PG OBUVSBM resources t 1PMMVUJPO Government and Regulatory Requirements t $PNQMJBODF XJUI applicable laws and regulations t 1PMJDJFT BOE QSPDFEVSFT on key operation processes t $PEF PG $POEVDU t 8IJTUMFCMPXJOH QPMJDZ In addition, the industry is very competitive and its vibrancy depends on property development projects and public sector projects planned and launched by the respective project owners. The ability to deal with these challenges will have direct impact on UIF QFSGPSNBODF PG UIF (SPVQ BOE JUT TVTUBJOBCJMJUZ (FOFSBMMZ PVS LFZ PQFSBUJPO QSPDFTTFT BSF HPWFSOFE CZ BQQSPWFE policies and procedures to ensure amongst others, that our operations are conducted in an orderly manner for delivery of quality products and services, and in compliance with applicable laws and regulations. MANAGEMENT OF SUSTAINABILITY MATTERS Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 029