MISC Integrated Annual Report 2020

Loss Time Injury Frequency (LTIF) and Total Recordable Case Frequency (TRCF) In 2020, our LTIF and TRCF, showed improvements of 60% and 31% respectively compared with 2019. The higher emphasis placed on safety culture by increasing HSE supervision at site and implementation of Non-Compliance Management had resulted in an encouraging decline in contractor LTIF and TRCF. Incidents are investigated to identify the underlying causes and Lessons Learnt are shared group wide. Reflective learnings are carried out in groups to instill deeper understanding of incidents and preventative measure. HEALTH MISC had introduced the b-HSSE campaign in 2018 to improve the general health and wellbeing of our employees. The campaign encourages them to be more physically active, improve their intake of healthy nutrition and develop a healthier mind. In 2019, the campaign was complemented by the Move, Mind, Munch (3Ms) programme to further focus on their health and wellbeing. Various activities were also conducted for employees that included group workouts, Muay Thai classes, group walking challenge, heath talks, monthly health advisories and healthy food campaigns across the Group. In 2020, two health risk assessments (HRA) were completed at both floating storage units. During the COVID-19 pandemic, MISC has taken various measures towards ensuring the health and safety of its employee which include: i) Clear and prompt communication – MISC has been monitoring the pandemic situation closely both in Malaysia and internationally; and provide regular update / Health and Safety Advisory. This include employees working arrangement, visitors and contractors’ management, business travel, etc. ii) Case management – MISC through its network of health service providers around the globe ensure access towards prompt testing, quarantine and treatment of employees affected by COVID-19. This is in accordance with the local authorities’ procedure. iii) Sign-on and sign-off procedure for seafarers – due to the pandemic, many seafarers were on extended contract. MISC has been working closely with the authorities and enhanced its procedure to allow for our seafarers to sign-on and sign-off safely. In 2020, we have successfully conducted crew change for 7,767 seafarers. In addition, early this year, we signed the Neptune Declaration on Seafarer Wellbeing and Crew Change in a worldwide call to action to end the unprecedented crew change crisis caused by COVID-19. iv) Ongoing b-HSSE programme – secondary issues due to COVID-19 such as anxiety and stress, are managed through ongoing b-HSSE activities e.g. health talks, mindfulness sessions, stress management and personal resilience online workshop. As many of our employees worked from home during the year, we initiated the following health programmes virtually: • Introduction to Mindfulness • Mindfulness : Managing Anxiety • Mindfulness: Gratitude • Mindfulness: Mind-Heart Coherence • Mindfulness: Better Sleep SAFETY AWARDS Malaysian Society for Occupational Safety and Health (MSOSH) Award - FPSO MaMPU 1 won the Gold Merit Award for Petroleum, Gas, Petrochemical and Allied Sectors while FSO Orkid has been awarded with Gold Class 1 Award - MISC Maritime Services Sdn Bhd (MMS) Sungai Udang Port clinched the Gold Class 2 under the same category - Malaysia Marine and Heavy Engineering Sdn Bhd won the Gold Class 1 Award for Construction & Engineering Construction Sectors. - Akademi Laut Malaysia have garnered the Gold 2 Award for Educational Sectors. A total of 54 ships and four workboats were awarded the Jones F. Devlin Awards by the Chamber of Shipping of America (CSA) FSO Orkid was awarded the Repsol Marine Vessel Safety the Operational Excellence Award Eaglestar’s Site Manager Mr. Anwarussahil has been awarded with the Honorary Police Officer title by the Geoje City Police Station 2016 2017 2018 2019 2020 FREQUENCY 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 0.11 0.36 0.10 0.29 0.07 0.22 0.10 0.26 0.04 0.18 55,776,000 48,177,000 45,517,000 45,580,000 49,273,000 WORKING HOURS 60,000,000 30,000,000 50,000,000 20,000,000 40,000,000 10,000,000 MISC GROUP SAFETY PERFORMANCE MISC GROUP CONTRACTORS SAFETY PERFORMANCE Lost Time Injury Frequency (LTIF) Working hours Total Recordable Case Frequency (TRCF) FREQUENCY 0.40 0.50 0.35 0.45 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2016 2017 2018 2019 2020 0.33 0.13 0.39 0.13 0.36 0.22 0.45 0.26 0.28 0.07 SPECIAL FEATURE – HSSE STAND DOWN On 21 September 2020, colleagues from all over the world at sea and shore, gathered to participate in the MISC Group HSSE Stand Down to pay tribute to late able-bodied seaman. Reflective thoughts were shared by Mr Yee Yang Chien, President/ Group CEO, Captain Raja Sager, Managing Director/CEO of Eaglestar and Captain Rajalingam, President & CEO of AET. This incident served as a reflection for all of us to always stay vigilant, and to not take safety for granted. SPECIAL FEATURE – MISC HSSE RECOGNITION DAY 2019 HSSE is our number one priority, and each year we run an annual MISC Group HSSE Recognition Day which aims to increase the commitment of employees towards upholding high quality HSSE at the workplace. It is also an avenue to share HSSE experiences and good practices across the Group, as well as acknowledging the HSSE heroes. In 2020, we included a special programme, “#SayNotoPlastic”, which was graced by our special guest by Y.A.M Tengku Zatashah Binti Sultan Sharifuddin, who is a strong advocate for zero plastics campaigns in Malaysia. A total of 10 exhibitors from government bodies, non-governmental organisations (NGOs) and corporate companies showcased health, safety, environment, security and cyber security products and programmes. The event saw the participation of about 300 employees from the Menara Dayabumi office and was also broadcasted live to colleagues in other offices. OPERATING SAFELY AND SUSTAINABLY ///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 212 MISC Berhad / Integrated Annual Report 2020 7 213 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section

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