MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 70 www.miscgroup.com 71 www.miscgroup.com #deliveringProgress OUR MATERIAL MATTERS OUR MATERIAL MATTERS MATERIAL MATTER DESCRIPTION OUR APPROACH SUSTAINABILITY STRATEGIC PRIORITIES M6 Talent Management • Talent management involves attracting, developing and retaining employees to meet evolving business needs, supported by fair hiring and promotion practices, non-discrimination and equitable access to training and career progression • This material matter focuses on cultivating a capable and diverse workforce through structured development, inclusive practices and a performance-oriented culture that strengthens organisational resilience • Continue fostering a pipeline of talent through talent management frameworks that support future-ready skills Talent Excellence Risks: R3 R5 R6 R9 R10 Operating Environment: E3 E4 E5 E6 E7 E8 Key Capitals: SDGs: Strategic Pillars: SP1 SP2 SP3 TARGETS • Successor Ratio (Enterprise Critical Position: Executive Leadership Team) of 2:1 • Successor Ratio (Enterprise Critical Position: Others) of 2:1 • High Performing Talent Retention: 95% • Successor Ratio (Enterprise Critical Position: Executive Leadership Team) of 3:1 • Successor Ratio (Enterprise Critical Position: Others) of 3:1 • High Performing Talent Retention: 94% 2025 PROGRESS For more details on our talent management approach, please refer to Our People, Our Strength in our Sustainability Report 2025. MATERIAL MATTER DESCRIPTION OUR APPROACH SUSTAINABILITY STRATEGIC PRIORITIES M7 Human Rights • Human rights management covers the protection of fundamental and labour rights across operations and the value chain, including employment terms, working conditions and freedom of association, alongside the prevention of violence, harassment, child labour and forced labour, supported by grievance and whistleblowing channels • This material matter focuses on identifying and mitigating potential human rights impacts through due diligence and oversight across MISC’s activities and supply chain • Establish and implement policies and frameworks to strengthen and promote human rights principles and practices across our operations and businesses • Embed human rights due diligence practices within our own operations and across our value chain Social Pillar Risks: R5 R6 R9 R10 Operating Environment: E3 E4 E5 Key Capitals: SDG: Strategic Pillars: SP1 SP2 SP3 M8 Community Engagement and Development • Community engagement and development relate to interactions with communities affected by the Group’s activities, including coastal communities and those near MISC’s heavy engineering yard and maritime academy, as well as initiatives such as community investments and employee volunteerism • This material matter focuses on fostering constructive relationships, understanding local needs and contributing to sustainable socio-economic development in areas where MISC operates • Implement multi-stakeholder community initiatives and programmes focused on youths to cultivate interest in the maritime industry Community Investment Strategic Pillars: SP1 SP2 SP3 Operating Environment: N/A Risks: R9 R11 SDG: Key Capitals: TARGET • Continue Cadet Sponsorship Programme • RM32.2 million invested in 2025 for the sponsorship of 776 cadets 2025 PROGRESS For more details on our community engagement and development approach, please refer to Partnering with the Community in our Sustainability Report 2025. TARGET • Zero human rights breaches • Recorded zero human rights breaches in 2025 2025 PROGRESS For more details on our human rights approach, please refer to Respecting Human Rights at Sea and Shore in our Sustainability Report 2025.
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