Kimlun Corporation Berhad Annual Report 2023

BUILDING SUSTAINABLY Industrialised Building System (“IBS”) Kimlun strives to contribute to the improvement and evolution of the construction industry and attempts to create a better future through more sustainable building and construction methods. In this journey, Kimlun Group has incorporated IBS construction method as one of the key elements of its business, offering our clients value through quality products and services with the expertise and experience we have in Kimlun. IBS is a construction technique whereby components are manufactured in a controlled environment, either on-site or off-site, and transported, positioned, and assembled into construction works. Compared to conventional construction methods, IBS construction method may help to achieve: (a) higher quality product with lower wastage due to a factory-controlled prefabrication environment; (b) reduced pollution or waste and more resource-efficient construction from a more standardised and planned manufacturing process; (c) shorter construction time with prefabricated components replacing on-site construction; (d) relatively less nuisance to communities around sites due to shorter construction time; and (e) lower reliance on manual labour and hence mitigated manpower risks and less associated social issues. Sustainable Materials At Kimlun, we design some of our concrete mix in accordance with the criteria for green building materials. Sustainable concrete mix which contains 20% Pulverised Fuel Ash (PFA) is used for some of the building construction. In SPC Industries Precast Manufacturing Plant, PFA and/or ground granulated blast-furnace slag (GGBS) is used as cement replacement for some of the precast products to meet our client specifications in Singapore. PFA and GGBS are waste materials generated from industries like coal-fired power plants and iron production. The use of PFA and GGBS as cement replacements can help to reduce carbon emissions in concrete production. SPC Industries is certified by the Singapore Green Building Council for Ready-Mix Concrete for our precast production. Quality and Cost Management We put great emphasis on ensuring consistent quality in our work and products. We have established quality control teams who perform checks and reviews on our works and products, benchmarking against established standards such as the Quality Assessment System in Construction (“QLASSIC”) quality rating system in Malaysia or Construction Quality Assessment System (“CONQUAS”) in Singapore, as applicable. Continuous improvement is also a key element of our quality management process where potential improvement areas are identified on an ongoing basis. We maintain an established supplier and contractor assessment and/or tendering process to ensure we work with business partners who can support us in our endeavour to deliver quality products and services to our customers while optimising our financials. This includes setting a clear scope of work, performance expectations, and building trust and upholding business transparency in our relationships with suppliers and contractors. Before projects are carried out, we develop project plans, including procurement planning and incorporating risk management to mitigate uncertainties. Similarly, for pre-cast manufacturing activities, we perform pre-production planning and production process assessment prior to production and ensure quality control to minimise product rejection and optimise resources and cost-efficiency. SUSTAINABILITY STATEMENT 033 Annual Report 2023

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