MISC Annual Report 2019

A Diverse and Equal Workforce In an increasingly borderless market, we are cognisant of the fact that bringing people with diverse expertise, experience and socio-cultural backgrounds together will enable the Group to rise to current challenges and ensure a sustainable future. At MISC, we believe in respect for diversity and equal opportunities, and the prevention of all forms of discrimination. We also do not tolerate any form of discrimination based on ethnic groups, gender, religion, nationality, age, political affiliation, physical or mental disability, or any other personal characteristic or condition. To date, MISC has a total of 8,839 employees from 42 nationalities. MISC Group has 12.5% female employees. On the shipping side, we have 107 female seafarers and the highest female ranking seafarer is a Chief Officer. By 2022, we expect at least four more women to take up leadership roles of Master and Chief Engineer in Eaglestar. Management Discussion & Analysis Industry HR Trends Overall, the global hiring market in 2019 was dynamic despite widespread economic and political uncertainty, with demand being primarily for specialist technology skillsets as well as risk, regulatory and compliance professionals. This has led to candidate shortages in many markets. In Malaysia and Singapore, hiring showed steady signs of growth as digitalisation continued to gather pace within Malaysia where companies across every industry sought to accelerate their transformation efforts to scale and grow. Meanwhile, the rest of Southeast Asia experienced a buoyant hiring market, particularly in the high-growth markets of Indonesia, the Philippines, Thailand and Vietnam. Demand for ‘glocal’ talent – professionals with a strong understanding of both global business practices and local cultural mindsets – continued as more businesses internationalised. With talent shortage remaining relatively significant in 2020, employers will need to strengthen their recruitment process and remuneration package to remain competitive in order to avoid losing top talents. Correspondingly, retention strategies will continue to be a top priority in 2020. Key Developments for Shore Employees MISC’s strategic priorities for human resources in 2019 focused mainly on fortifying our foundation with the aim to build a robust succession planning programme, rolling out the functional competency framework and the new HR information systems, while embedding the cultural beliefs of the organisation in the mindset and behaviour of our people. During the year, in line with the Group’s strategic priorities to build a robust succession planning programme as a means of having a sustainable talent pipeline, we continued to adopt the same process of succession planning to assess the level of potential of senior leaders, comprising senior managers and above from across the Group, with the purpose of identifying a successor pool with high potential. Other subsidiaries within the Group have also established a succession planning process to identify potential leaders in order to enhance their readiness for critical positions. This will ensure that a talent pool of qualified and competent employees is readily available to lead MISC forward. Meanwhile, efforts to attract, retain and develop the right talent to support the Group’s sustainability goals continued from the previous year where diversity and inclusiveness were leveraged as differentiating factors. Since senior position resourcing remains a challenge that most organisations are facing today, the Group placed a lot of emphasis to ensure the senior positions are filled within three months from a position being vacant to avoid business and operational disruption. In FY2019, more than 90% of the senior position resourcing for Management Committee, critical positions and senior positions were filled. The hiring trend will constantly evolve; therefore, the focus will continue to be competitive in response to the trend. The other strategic priority for the Group is retaining the right talent in order to sustain the business and for future growth. In 2019, the retention rate of high performing talents was at 94%. As it is critical for the Group to retain high performing talent, efforts will continue to provide talents with a challenging role, competitive remuneration and structured development in both functional and leadership areas. 32 Leadership Programmes 413 Participants 919 Training man-days 121 Functional Training Programmes 400 Participants 818 Training man-days 5 sessions Platform Series RM7.66 million Total Training Costs Percentage of Shore and Sea Employees by Gender Total Male 7,736 Female 1,103 87.5% 12.5% Shore Male 2,896 Female 996 32.8% 11.2% Sea Male 4,840 Female 107 54.8% 1.2% 552 2,489 4,805 993 6.2% 28.2% 54.4% 11.2% Age of Employees 55 and above (Baby Boomers) 40-54 (Gen X) 25-39 (Millenials) 24 and below (Gen Z) Percentage of Executives/Officers & Non-Executives/Ratings 61.4% 38.6% 5,428 3,411 Executive/Officer Non-executive/ratings Nationality of Workforce Others 389 (4.4%) US 90 (1.0%) Singapore 112 (1.3%) Indonesia 193 (2.2%) India 1057 (12.0%) Malaysia 5755 (65.0%) Philippines 758 (8.6%) Bangladesh 267 (3.0%) China 218 (2.5%) People Development Female Employees Percentage at MISC Group MMS 21% Eaglestar (shore) 29% ALAM 28% MHB 19% AET (shore) 44% MISC Berhad 43% MISC BERHAD MISC BERHAD 133 132 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019