Kimlun Corporation Berhad Annual Report 2025

ANNUAL REPORT 2025 045 SUSTAINABILITY STATEMENT Employee Welfare Why It Matters Respecting human rights is fundamental to ethical business conduct and sustainable growth. As a responsible employer and corporate citizen, we must ensure dignity, safety and equal opportunity for all individuals connected to our business including employees, contractors and communities while managing legal, reputational and operational risks. Management Structure and Policies Kimlun is dedicated to upholding human rights and fair labour standards, aligned with the United Nations Global Compact’s Ten Principles and all relevant legal requirements. The Company complies with applicable labour laws and regulations, including working hours, overtime regulations, living conditions, Employment Act and minimum wage requirements. An Employee Handbook guides employment practices and workplace conduct, and the Company respects employees’ rights to freedom of association and collective bargaining. Risks Opportunities • Forced labour • Unfair wages • Non-compliance with labour laws • Risk of project halt • Reputational damage • Strong employee retention • Brand value Our Approach The Company strictly prohibits child and forced labour and ensures that children are not exposed to exploitation, unsafe environments, or harmful situations arising from its operations. All workers entering project sites must possess a valid work permit and a CIDB Green Card, both of which require age verification. Identity checks, including passport or identity card verification, are conducted to prevent child labour. We support children’s rights across our operations by ensuring areas around our project sites are safe for children (traffic control, barriers, signage). We respect fundamental human rights and adhere to ethical labour practices in compliance with applicable laws and regulations, including providing proper accommodation for workers. Grievance Mechanism The Company maintains a transparent grievance mechanism that enables employees to report concerns related to human rights or labour practices. Reports may be submitted anonymously through a whistleblowing email channel, which is overseen by the Group CEO and the Chairman of the Audit and Risk Management Committee. We commit to providing or cooperating in remedy where it has been identified that we have caused or contributed to human rights impacts. This includes taking timely corrective actions, engaging directly with affected parties, and ensuring fair and transparent resolution processes. All grievances are assessed, documented, investigated, and closed with appropriate follow‑up to prevent recurrence. Employee Benefits Kimlun supports employee well-being through comprehensive insurance and medical benefits. All employees are covered under Group Personal Accident (GPA) and Group Hospitalization & Surgical (GHS) insurance plans, providing financial protection in the event of unforeseen medical emergencies. Local employees receive hospital, surgical, and personal accident coverage, while foreign employees are provided with workmen’s compensation insurance to ensure timely medical treatment. To strengthen the management of labour and human rights risks, the Company is exploring the formalisation of Human Resources policies covering human rights, the prevention of forced and child labour, and workforce diversity and inclusion.

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