MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 18 www.miscgroup.com 19 www.miscgroup.com #deliveringProgress CHAIRMAN’S MESSAGE CHAIRMAN’S MESSAGE We enhanced our integrity and accountability frameworks, including the formalisation of Directors’ Conflict of Interest procedures and updated Guidelines on Related Party Transactions and Recurrent Related Party Transactions for MISC Group, to support informed and independent judgement while safeguarding stakeholder trust. Governance enhancements also focused on strengthening Board effectiveness and oversight quality. This was reflected in our updated Terms of Reference, providing clearer delineation of responsibilities and structured review processes that improved alignment and accountability. An independent Board Effectiveness Evaluation provided further insights to strengthen Board composition, performance and dynamics. Recognising the evolving regulatory, sustainability and geopolitical landscape, the Board continued investing in capability development through targeted training and focused learning sessions. These efforts ensured that the Board remains well equipped to oversee emerging risks, transition priorities and long-term strategic trade-offs. REINFORCING TRUST THROUGH GOVERNANCE AND REPORTING RECOGNITION The Group’s commitment to strong governance and transparent reporting was reflected in the recognitions received during the year, including awards at the National Corporate Governance & Sustainability Awards (NACGSA) 2025 and the National Annual Corporate Report Awards (NACRA) 2025. These recognitions affirm the Board’s sustained focus on integrity, disclosure quality and accountability to stakeholders. ADVANCING TRANSITION WITH PRUDENCE AND CREDIBILITY The energy transition has evolved at an uneven pace due to fragmented policy direction, which has led to greater scrutiny over the costs involved in advancing decarbonisation pathways. In this environment, the Board’s responsibility is to ensure meaningful progress while ensuring that decarbonisation initiatives advance in a measured and orderly manner, aligned with regulatory clarity, technological maturity and execution readiness. On behalf of the Board, I thank our shareholders and stakeholders for their continued trust and support. I also extend my appreciation to my fellow Board members for their counsel, constructive challenge and dedication to sound governance, and to the Executive Leadership Team for their focus on disciplined execution. Above all, I wish to acknowledge the people of MISC across our operations, onshore and offshore. Your commitment, expertise and sense of responsibility enable the organisation to perform safely and reliably each day, sustaining our operational excellence and the trust placed in MISC by customers and partners worldwide. As I mark my fifth and final year as Chairman, I take confidence in the strength of the governance framework, leadership team and organisational capability that will underpin the next phase of MISC’s journey. APPRECIATION Ranked Top 20 Overall Excellence at NACGSA, affirming our standards in governance and sustainability. During the year, sustainability remained firmly embedded within our strategic and governance processes. As the Sustainability Strategy 2021–2025 approached its conclusion, the Board guided the development of the Sustainability Strategy 2026–2030 to ensure smooth continuity and alignment with the Group’s long-term direction. We also formally published our Commitment to Net Zero GHG Emissions by 2050, reaffirming our intention to decarbonise across all aspects of our operations and value chain. This assurance aligns with internationally recognised frameworks, including the Paris Agreement, the United Nations Sustainable Development Goals (SDGs) and the International Maritime Organization (IMO)’s GHG reduction targets, ensuring that our transition pathway remains credible and globally relevant. Sustainability reporting and performance measurement were further strengthened during the year to align with emerging global standards, including the International Sustainability Standards Board (ISSB) framework, reinforcing our commitment to transparent and decision-useful disclosures. Beyond environmental priorities, we remain committed to nurturing future maritime professionals. Since 1977, Akademi Laut Malaysia (ALAM) has trained more than 15,000 seafarers to uphold professional standards across the sector. Our Cadet Sponsorship Programme equips local youth for maritime careers, strengthening Malaysia’s talent pipeline and contributing to long-term industry resilience. We also recognise the importance of sustained collaboration with customers, regulators and industry participants. These long-term partnerships underpin stability across the ecosystem and reinforce the reliability of the global energy supply chain in which MISC operates. FORGING AHEAD RESPONSIBLY Looking ahead, we remain confident in the strength of the Group’s portfolio and its ability to adapt to a complex operating environment influenced by new developments in geopolitics, policy and regulations. Our priority will be to sustain earnings quality, preserve balance sheet resilience and maintain execution excellence across the organisation. Transition initiatives will continue to advance in a measured manner, aligned with commercial viability and supported by organisational capability, ensuring that the Group is well positioned for future opportunities without compromising the integrity of its core operations. Over the coming year, disciplined capital deployment, capability development and sound, independent judgement will anchor our priorities as we remain attentive to emerging risks and opportunities while safeguarding long-term value in the interests of all stakeholders. For more information, please refer to Corporate Governance Overview Statement on pages 172 to 195.
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