046 KIMLUN CORPORATION BERHAD • SUSTAINABILITY STATEMENT Progress Indicator Unit FY2023 FY2024 FY2025 Substantiated complaints concerning human rights violations Number 0 0 0 HUMAN RESOURCE MANAGEMENT Why It Matters The construction industry is a key driver of Malaysia’s economic growth, creating employment for both skilled and unskilled workers. As a Group, Kimlun Corporation Berhad contributes to national development by delivering critical infrastructure projects including roads, tunnels, railway networks that enhance connectivity, access to economic opportunities, and community well-being. Beyond project delivery, we are committed to nurturing local talent, promoting supply chain participation, and generating long-term socio-economic value in the communities where we operate. Risks Opportunities • Employee turnover can impact productivity, operational efficiency, and knowledge retention • Difficulty in attracting and retaining skilled employees may affect project delivery and business growth. • Insufficient or outdated employee skills can limit performance, innovation, and quality outcomes. • Poor HR practices or employee dissatisfaction can negatively affect the Group’s reputation. • Low engagement or high attrition can weaken teamwork and cross-functional collaboration. • Potential stagnation or gaps in leadership may hinder succession planning and long-term organizational stability. • Workforce development: Implement structured training, upskilling, and career development programs to enhance employee capabilities, bridge skills gaps, and boost productivity and innovation. • Succession Planning: Establish a robust leadership pipeline through mentorship, talent identification, and planned career progression, ensuring continuity and reducing risks from leadership gaps or high turnover. Management Policies Kimlun has established formal policies and practices to govern human resources, emphasizing ethical conduct, fair treatment, and professional development. These policies are embedded within the Group’s broader governance framework. Key HR policies include: Policy Purpose Corporate Code of Conduct Guides employee behaviour, emphasizing a workplace free from discrimination and harassment, while respecting privacy rights. Remuneration Policy for Directors and Key Senior Management Ensures fair, performance-based compensation aligned with responsibilities and market benchmarks. Directors’ Fit and Proper Policy Governs the appointment and re-election of Directors to ensure integrity, experience, and character. Whistleblowing Policy & Procedure Provides a protected channel for employees to report unethical behaviour without fear of reprisal.
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