Kimlun Corporation Berhad Annual Report 2020

Category MSM to address Our actions (PWFSONFOU and regulatory requirements t *O ': UIF OFX 4FDUJPO 17A of the Malaysian Anti- Corruption Commission Act 2009 took effect in June 2020. t .BMBZTJBO MBCPVS MBXT increased the minimum wages through the Minimum Wages Order 2020. t 8F JNQMFNFOUFE UIF "OUJ #SJCFSZ .BOBHFNFOU 4ZTUFN XJUI TUSJOHFOU QPMJDJFT and regulations to prevent corruption and bribery and ensured adequate policies and procedures are in place. The Anti-Bribery and Anti-Corruption Policy which complements our Code of Conduct is also published in our website. t 8F SFWJFXFE PVS IVNBO SFTPVSDF QPMJDJFT BOE SFNVOFSBUJPO TUSVDUVSF UP FOTVSF UIBU we meet the minimum wages order requirements Social contribution t 8PSL QMBDF QSBDUJDFT t 1MFBTF SFGFS UP UIF FOTVJOH TFDUJPO PO DPSQPSBUF TPDJBM SFTQPOTJCJMJUZ i$43w t 0DDVQBUJPOBM TBGFUZ BOE health (“SH”) t 8SJUUFO QPMJDZ BOE QSPDFEVSFT PO 4) t 5SBJOJOH BOE DPOUJOVPVT VQEBUFT PO UIF SFRVJSFNFOU PG UIF BQQMJDBCMF MFHJTMBUJPO UP UIF senior leadership at site t 1MFBTF SFGFS UP UIF TFDUJPO PO 4) GPS GVSUIFS JOGPSNBUJPO t $POU S JCVU JPO UP MPDBM community t 1MFBTF SFGFS UP UIF FOTVJOH TFDUJPO PO $43 SUSTAINABILITY STATEMENT 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. 8F IBWF TFU B CFODINBSL SFKFDUJPO SBUF PG OPU NPSF UIBO BT B guide. For the year under review, we successfully kept the rejection MPXFS UIBO UIF CFODINBSL SBUF XJUI UIF BDUVBM SFKFDUJPO SBUF PG Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 031

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