FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 10 OVERALL 2024 2024 has been a year of significant achievements for Frontken, marked by record financial performance and growth across both our business segments. Our unwavering focus on operational excellence, strategic investments and responsiveness to market demands has allowed us to strengthen our position as a leading service provider in the industries we serve. Our subsidiary in Taiwan, which serves the semiconductor industry, played a crucial role in driving our growth. The increasing complexity of semiconductor manufacturing and the rising need for electronics have led to higher demand for our services. We successfully expanded our capacity and optimised our operations to support our customers’ growing requirements, reinforcing our position as a trusted partner in the industry. Similarly, our operations in Singapore and Malaysia continued to contribute positively, benefiting from continued demand in the semiconductor sector. Innovation and R&D remained a core focus throughout the year. We continued to invest in automation, process improvements and new technologies to enhance our service offerings and improve operational efficiency. Our ongoing efforts in sustainability and environmental responsibility also continued, aligning with our customers’ increasing emphasis on green production and cleaner processes. In addition to our semiconductor business, our engineering division continued to deliver steady performance. The recovery of the oil and gas (“O&G”) sector and increased repair and maintenance activities in key markets had provided us with opportunities for growth. We leveraged our expertise in the precision engineering space and specialty proprietary coatings to serve our customers across the O&G, energy and other general industries. That said, 2024 was not without its challenges. Global economic uncertainties, inflationary pressures and geopolitical tensions created a volatile business environment. Additionally, supply chain disruptions and rising costs posed hurdles, requiring us to take proactive measures to maintain operational efficiency and costeffectiveness. Despite these challenges, our ability to adapt and our commitment to innovation enabled us to navigate the challenges effectively. OUR WORKFORCE During the year, we continued to invest in training and development to empower our workforce, equipping them with the skills and knowledge to excel in an ever-evolving industry. Through various learning programmes, workshops and leadership development initiatives, we continued to foster a culture of growth, innovation and excellence. We have always believed that when our people are well trained, they not only produce higher quality results the first-time round, but also the process of self-improvement keeps them motivated and better able to take on their daily challenges. Apart from providing development and growth opportunities, we believe that it is vital to ensure that all our employees are compensated fairly for their skills and commitment. We continued to monitor and make the necessary adjustments to our employees’ compensation so that they are at least in line with the industry standards. This includes having a compensation package that reflect their achievements based on meeting key performance indicators in both qualitative and quantitative measures. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) AND SUSTAINABILITY We recognise that good ESG practices are essential for sustainable business growth and risk management. ESG is not just a compliance requirement but it is a fundamental part of our growth strategy. Over the years, we have been progressively incorporating ESG considerations into our operations, particularly in our environmental initiatives, employee welfare and corporate governance practices. We believe that this is important to us as it aligns with the Group’s long-term sustainability strategy, operational resilience and corporate responsibility. Environmental – We acknowledge the importance of reducing our carbon footprint. To that end, we have implemented various energy efficient processes and waste management strategies to minimise our environmental impact. During the year, we continue to measure and reduce greenhouse gas (“GHG”) emissions associated with our operation. We strive to minimise energy consumption in our workplace and at the same time improve on our operational performance in the areas of GHG emissions and energy, waste and water usage. In 2024, through our efforts and continued collaboration with our customers, since 2018, we have adopted the equivalent of 4.7 million KW of electricity using solar energy, an accumulative savings of 492.7 thousand tonnes of recycled DI-Water and accumulative savings of 462.5 thousand kg of recycled waste in our operations. Our goal is to implement energyefficient processes and reducing carbon emissions across all facilities. The long-term target is to reduce our Emissions Intensity which is to stabilise emissions with the aim to achieve Net Zero Emissions by 2050. CHAIRMAN’S MESSAGE (CONT’D)
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