MISC Annual Report 2018

INDUSTRY HR TRENDS Overall, the global hiring market was buoyant in 2018, with most markets reporting an increase in hiring due to positive economic conditions and employer confidence. Many markets continued to face talent shortages, especially in relation to bilingual professionals and those with specialist digital skills. South East Asia experienced a bullish recruitment market, with rapid growth across Indonesia, Philippines, Thailand and Vietnam, partly driven by foreign direct investment and the continued entry of multinational companies. In comparison, hiring in Singapore and Malaysia was modest and stable as companies sought fewer but better-skilled professionals. With talent shortages set to continue in 2019, employers will need to streamline their recruitment processes to retain top talent. Employee retention will be the top priority in 2019, and in order to retain the right talent, employers are increasingly investing in learning and development, benefits packages, flexible working hours, employee engagement and employer brand on top of paying competitive salaries. With the increase of technological advancement in the shipping industry, this has stimulated a shift in mindset and encourages a deeper understanding on how to improve efficiency without hindering the safety of employees and vessels. From a strategic standpoint, the training focus moving forward is to embrace and adopt new technologies, whilst ensuring safety remains top priority. In the oil and gas sector, the increasing number of deepwater projects which are more complex in nature requires not only sophisticated technologies, but also human expertise to ensure successful delivery of the projects. Meanwhile, in the LNG sector, an increase in LNG tonnage globally over 2018 led to aggressive recruitment for skilled and experienced LNG officers of all ranks. While having a competent workforce is crucial for business sustenance, it is also important for industry players to keep up with industry automation. The successful delivery of the first ever fully automated, unmanned wellhead platform in the North Sea in October 2018 will have an impact on the employment market in the long-term. KEY DEVELOPMENTS FOR OUR SHORE EMPLOYEES MISC’s 2020 strategic targets for human resources are twofold - to have a sustainable talent pipeline in place across job levels to ensure seamless succession and progression in the organisation, and to have a competent and capable workforce through a structured and holistic developmental process. Therefore, in line with the Group’s strategy, we extended our succession planning framework across the organisation to include non-critical managerial roles and we piloted our revised Functional Competency Framework in November 2018 to ensure that a talent pool of qualified and competent employees are readily available to lead MISC forward. The methodology of the functional competency framework is based on self-assessment by each employee on the key competencies for his/her role, followed by a superior’s assessment which is carried out through a one-to-one discussion. Based on the findings of the assessment, Human Resources may then identify and implement relevant intervention plans to address relevant competency gaps among its employees. On the employee competency development front, we continued to roll out a host of leadership and functional competency initiatives which includes the launch of the 2018 training calendar during HR Learning Day to enable employees to self-register themselves for relevant training programmes throughout the year. Altogether, a total of 443 employees participated in 874 man-days of leadership programmes over the year and a further 394 employees participated in 933 man-days of functional programmes. Investment in training programmes in 2018 was RM5.44 million across more than 3,000 shore employees. MANAGEMENT DISCUSSION & ANALYSIS PEOPLE DEVELOPMENT We also implemented an enhanced recruitment process from 1 January 2018 to recruit better quality candidates into the Group. This process includes new assessment tools and a more structured way of tracking the progress of the hiring process. The year in review also saw our Marine and Heavy Engineering segment (MHB) being awarded a Certificate of Excellence in Human Resource Development from the Malaysian Ministry of Human Resources in 2018. This was in recognition of MHB’s active contributions in people management and development at the organisational as well as national level. HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 133 MISC BERHAD ANNUAL REPORT 2018 132