MISC Annual Report 2018

KEY DEVELOPMENTS FOR OUR SEAFARERS MISC Group’s key focus is to develop a sustainable pool of seafarers, and we are committed to provide a pipeline of highly skilled and motivated employees who can execute the business strategies of the Group. Through our Integrated Marine Services subsidiary, Eaglestar, we are continuously seeking ways to enhance their competencies, proficiency and capabilities in various aspects of the business and operations. For the year in review, Eaglestar supported the development of its seafarers by investing USD8.7 million in training and development programmes. Our efforts and commitment towards high standards of safety and excellent working practices were globally recognised in 2018 with the ‘Safety Conscious Employer / Ship Operator of the Year’ award at the IHS Markit Safety at Sea Awards held in London. Additionally, Eaglestar was also shortlisted as a finalist under the three other categories for the Safety at Sea awards, namely Safety Conscious Employer/Ship Operator of the Year, Crew of the Year and Best Crew Development Program of the Year in recognition of our continuous effort to improve safety practices and standards across the shipping industry. As our Superintendents are the backbone of the shipmanagement industry, their competency development is essential to ensure operational efficiency. Therefore, we have developed a structured and comprehensive competency matrix and intervention plans to address the gaps in technical, business and soft skills of our Fleet Operations and Quality, Assurance, Health, Safety, Security & Environment (QAHSSE) Superintendents. A total of 5 programs were conducted in 2018. We also recognise that our future lies with the cadets that we train. In line with this, a Designated Training Officer (DTO) Program has been launched with time-bound and clearly defined training objectives. A total of 12 Second Officer and Third Engineers with superior certificates were trained as DTOs in 2018. To further enhance the capabilities of our seafarers, in collaboration with Akademi Laut Malaysia (ALAM), a structured multi-skilling program for deck and engineer officers was packages in order to create stronger retention and attraction factors for these ranks to ensure sustainable talent pipeline is in place. MOVING FORWARD In 2019, aside from focusing on succession planning and employee competency development, the Group will work towards implementing our new Talent Management System. This robust system will support our organisation’s human capital development activities and provides an end-to-end solution for succession planning, learning management system, talent acquisition and 360-degree feedback. This collaborative effort between HR, Group ICT and AET will enable our people to tap their full potential and fulfil their personal aspirations. As the maritime industry is undergoing transformational innovation in ship and engine design, particularly with respect to manpower requirements, fuel technology and automation, we will set our sights to provide ongoing upskilling training for our officers to effectively deliver efficient and safe operations, whilst remaining agile to adapt to further developments. Over 2019, MISC is well positioned to meet the challenges of a changing environment, with mature and agile programs in place to meet emerging needs. Sustainable development of our seafarers through Eaglestar’s comprehensive competency management systems, supported by structured behavioural competency management, will enable our officers to be future proofed to manage, operate and maintain LNG and Petroleum carriers with high levels of efficiency and confidence. developed, to acquire skills and certification for operating multiple types of vessels in the fleet. This programme, which was rolled out to 20 officers, will lay the foundation for future officers to be capable of operating both LNG vessels and Petroleum & Product tankers. Complementing the Group’s innovative sustainability agenda in operating the newly delivered Aframax tankers with LNG Dual Fuel propulsion systems, Eaglestar has invested in developing more than 50 employees in 2018 with the capabilities to manage this new technology. In another growing segment, we also continued to build internal capabilities to support the expansion of our Dynamic Positioning Shuttle Tanker (DPST) fleet to meet future demands, creating value for the organisation as well as seafarers’ personal growth. As part of our efforts to remain competitive in the market and to retain competent and capable senior officer and engineers, we have conducted a holistic salary study which will be the basis for us to review relevant remuneration MANAGEMENT DISCUSSION & ANALYSIS PEOPLE DEVELOPMENT 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 135 MISC BERHAD ANNUAL REPORT 2018 134