Kimlun Corporation Berhad Annual Report 2022

OUR ACTIONS • Adoption of industrialised building system (“IBS”) construction method • Quality control teams which check and review quality of our works and products, benchmarking against established standard such as the Quality Assessment System in Construction (QLASSIC) quality rating system, Construction Quality Assessment System (CONQUAS), and recommend ways to improve weaknesses identified • Active negotiation and co-operation with sub-contractors and suppliers, implementation of the approved policies and procedures governing the tendering process and project management process to achieve cost efficiency, service quality and reliability • Lock in bulk orders for materials in advance • Materials budgeting prior to the commencement of project and review the materials consumed against the budget • Engagement of sub-contractors based on clearly identified scope of works, performance and basis of price • Internal and external training and seminar to update employees’ technical know how • Established quality control procedures and project tendering guidelines to ensure quality services and products to customers, and cost efficiency • Wide range of services and products • Focus in more technical demanding products and services to create a market niche or speciality • Participate in trade fair to create visibility • Adoption of IBS construction method as it leads to less wastage of materials • Proper pre-production planning and strict production process control to minimise product rejection rate • Reuses recyclable materials in our operation thus reducing the consumption of natural resources and the impact of our operation to the environment • Green building is one of the solutions in the fight against global climate change. The Group designs its concrete mix to meet green building materials criteria. The Group keep itself updated and comply with the green building materials criteria for its pre-cast concrete products. Some of the Group’s pre-cast concrete products are certified with the highest rating category of “Leader” by the Singapore Green Building Council • Recyclable materials, if cannot be reused in our operations, will be channelled to recycling companies • Engage waste disposal companies that commit to dispose our construction waste in appropriate disposal sites, i.e. not by way of illegal dumping • Large commercial grade waste bins at project sites to collect construction waste and non-construction waste to maintain cleanliness of project sites. The bins will be pulled out from the project sites at fixed intervals or as and when the bins are full, whichever is the earlier • Environmental impact assessment in relation to quarry operation • Construct temporary earth drain (where necessary) to prevent water ponding and flooding • Construct silt trap to collect and store sediment from sites cleared during construction • Adopt the Sustainable Urban Drainage System (SUDS) to drain off stormwater in such a manner to control flash floods and control water runoff quality • Construct wash through where every vehicle wash their muddy tyres before exiting the project site • Sheeting vehicles carrying dusty materials on leaving our factory to prevent materials being blown from the vehicles • Spraying of roads with water using high power water jet to maintain cleanliness of public road leading to the construction site • Our pre-cast concrete components manufacturing arm, SPC Industries Sdn Bhd (“SPC”) has been accredited with Environment Management System Certification – ISO 14000:2000 Certification and follow the guidance under this standard to minimise the environmental impact of its operations • Compliance with the Guidelines on Adequate Procedures under Malaysian Anti-Corruption Commission (Amendments) Act 2018 • Implemented Anti-Bribery and Anti-Corruption Policy, Whistleblowing Policy and Code of Conduct • Provided training to employees on anti-bribery and corruption • Segregation of duties for job functions • Written policy and procedures on SH • Training and continuous updates on the requirement of the applicable legislation to the senior leadership at site • Please refer to the section on SH for further information • Please refer to the ensuing section on corporate social responsibility (“CSR”) • Please refer to the ensuing section on CSR SUSTAINABILITY STATEMENT Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 33

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