MISC Integrated Annual Report 2020

LIST OF TRADE ASSOCIATIONS Our involvement in industry associations provide an avenue for us to contribute towards the development of the shipping industry from both local and international standpoint. Membership Our position Global Maritime Forum (GMF) GMF is an international not-for-profit organisation committed to shaping the future of global seaborne trade to increase sustainable long-term economic development and human wellbeing. As a strategic partner and founding member of GMF with a seat on its Advisory Council, MISC plays an active role in shaping the future of maritime trade by working collaboratively in keeping the environment cleaner with the reduction of harmful GHG. Maritime Anti- Corruption Network (MACN) As a global business network, MACN works towards achieving the vision of a maritime industry free of corruption that enables fair trade to benefit the society at large. Our participation in MACN is aligned to the United Nation’s Sustainable Development Goals (UNSDG), in particular, UNSDG 16 for Peace, Justice and Strong Institutions and UNSDG 17 for Partnership for Goals. Oil Companies International Marine Forum (OCIMF) OCIMF is widely recognised as the voice of the oil industry providing expertise in the safe and environmentally responsible transport and handling of hydrocarbons in ships and terminals and setting standards for continuous improvement. MMS is now officially recognised as a member of OCIMF which qualifies us to be the official marine assurance and compliance representative for PETRONAS Group of Companies. International Association of Independent Tanker Owners (INTERTANKO) Through its Gas Tanker Committee (GTC), INTERTANKO aims to promote the interests of independent gas tanker owners in international forums and organisations on best practices and standards beyond compliance with regulations. MISC plays an active role in INTERTANKO by working collaboratively with peers and constructively listening to feedback from industry partners as well as providing meaningful perspectives in driving the successful resolution of its members’ concerns. Malaysia Shipowners’ Association (MASA) MASA engages the government and the industry frequently to strengthen existing relationships as well as foster new ones. MISC plays an active role in highlighting issues aimed at enhancing and strengthening the development of national shipping industry. Society of International Gas Tanker and Terminal Operators (SIGTTO) SIGTTO is an international body established for the exchange of technical information and experience between members of the industry, towards enhancing the safety and operational reliability of gas tankers and terminals. Eaglestar is actively involved by participating in the forums and meetings organised by SIGTTO. Malaysian Gas Association (MGA) MGA’s vision is to promote a vibrant and sustainable Malaysian gas industry. MISC is a Council Member of MGA and also holds the Chairmanship of the Government and Regulatory Affairs Working Committee. This membership has broadened our business base and international ventures by enabling our participation in International Gas Union’s (IGU) events as well as contributing our expertise in collaborative projects. The P&I Clubs The P&I Clubs play a key role in coordinating and promoting the collective strength of the P&I industry on behalf of the global shipowning community. MISC benefits from the sharing of knowledge and expertise on matters relating to shipowners’ liabilities and the insurance and reinsurance of such liabilities. Malaysia Women in Energy (MyWiE) MyWiE is an advocacy group with the main objective of championing equal opportunity for women in the energy sector. It is promoting this agenda by bringing industry leaders together to encourage equal opportunity and diversity in the energy sector at all levels and categories. MISC plays an active role as the Chairman of the Advisory Panel. Society for Gas as Marine Fuel (SGMF) SGMF is a non-governmental organisation (NGO) to promote safety and industry’s best practice with regards to the use of gas as a marine fuel. Eaglestar joined SGMF in 2020 and as one of the first mover in LNG Bunkering operation, our intention is to influence the implementation of best practices in this sector. During the year under review, MISC Group contributed a total of RM1.19 million to our trade association and membership. ANCHORING SUSTAINABILITY @ MISC The MISC Customer Engagement Survey is conducted once every two years, with the most recent survey carried out in 2020. The survey was sent to the key customers of MISC (namely the LNG Business segment and Offshore Business segment), AET, MHB, Eaglestar and MMS. A total of 44 responses were received and MISC Group’s average score is within the ‘Meeting Expectations’ category. SPECIAL FEATURE : CUSTOMER ENGAGEMENT SURVEY 10% 20% 30% 40% 50% 60% 70% 80% 40% 60% 30% 70% 70% 71% 29% 30% 50% 10% 10% 25% 75% 23% 66% 7% 4% 14% 14% OVERALL SATISFACTION Very Satis ed Satis ed Neutral Less Satis ed AET Eaglestar LNG MHB MMS OBU MISC Group (Average) Percentage of respondent’s satisfaction With respect to the Group’s aspects of service, Asset/Fleet/Service Quality along with Operational Performance received the highest scores, while Commercial Competitiveness scored the lowest. As for our business units and subsidiaries, 89% of respondents were either ‘Very Satisfied’ or ‘Satisfied’. Our scores indicate that our customers are generally satisfied with the services provided by the Group. In general, customers will consider MISC for future business opportunities based on our track record and service quality. Customers also indicated a high level of willingness to recommend us to others. The survey also provided customers with the opportunity to share their concerns. Among the key issues raised were commercial competitiveness, enabling a more proactive approach in providing new ideas and solutions, and conducting regular engagements to keep customers abreast of the latest developments. Moving foward, we plan to use the feedback obtained to further improve our customer service proposition. STRATEGIC COMMUNITY INVESTMENT At MISC, we strongly believe that community investment can help build strong relationships of mutual trust between a business and its stakeholders. In the longer term, strategic community investments not just benefit the population segments it is targeted towards, but also gives the company its social license to operate. Theme Aspects Benefits to community Material matters UNSDG Relevant sections Biodiversity conservation Marine (coral reef) conservation • • Increase socio-economic status of the local community • • Conservation of marine biodiversity • • Ocean Health Operating Safely and Sustainably Turtle Conservation Port Management & Maritime Services Business Review Education Cadet Scholarship Programme • • Support communities to have better access to education resources • • Skilled workforce • • Employee Engagement • • Integrated Marine Services Business Review • • Maritime Education & Training Business Review MHB Art of Science Marine & Heavy Engineering Business Review MHB Go Green Marine & Heavy Engineering Business Review COVID-19 Donations • • Provide relief to the communities during the COVID-19 pandemic • • Corporate Social Responsibility • • Petroleum & Product Shipping Business Review • • Marine & Heavy Engineering Business Review //// Highlights / Strategic Review / Sustainability / Financial Review / Business Review ///// MISC Berhad / Integrated Annual Report 2020 5 112 MISC Berhad / Integrated Annual Report 2020 5 113 ///// Business Review / Financial Review / Sustainability / Strategic Review / Highlights //// Section Section