MKH Annual Report 2017

The Group’s Property Development and Construction Division adheres to the industry standard of CIDB’s QLASSIC in the development of property projects, adopting stringent quality checks at all stages of construction and finishing, including tested and commissioned utilities, external and internal fittings, and aesthetic appeal that are packaged in the comfort of a secure and well-built home. Besides advancing our infrastructure plans to accelerate connectivity and enhance necessary conditions for the economic development of the communities, we anticipate and stay abreast of latest trends in the property market; embracing and adapting well to innovation such as our current planning of transit-oriented developments strategically located along the Klang Valley’s urban public transportation system. Our adaptation of Industrialised Building System ("IBS") in property development will also prove to accentuate our expertise in creating value for our homebuyers through the building of affordable yet quality housing. Among one of the first oil palm plantation companies in Indonesia to be awarded the ISPO certification, the Group commits itself to finding socially responsible alternatives to further advance estate production. MKH is also an active participant in the Indonesian Plasma Programme, with two Plasma estates totalling approximately 2,000 hectares. Through this programme, the Group provides job opportunities and improved quality of life to the local community, and also purchases FFB from them. 29 MKH Berhad • Annual Report 2017 Sustainability Governance Structure Whilst the Board is primarily responsible for the sustainability performance of the Group, a Sustainability Reporting Committee, helmed by certain key management personnel, has been established to assist the Board in identifying Material Sustainability Matters, monitoring how they are managed and reporting the same to the Board. Material Sustainability Matters and how they are managed During the financial year and up to the date of this Statement, a training workshop as well as a follow-up meeting, which were facilitated by an external consultant, to identify Material Sustainability Matters as well as key stakeholders pertaining to the Group’s operations, covering property development and construction, plantation, and hotel and property investment was conducted and participated by management personnel responsible for the various business units. Set out below is an overview of what the Material Sustainability Matters of the Group are, including how they are managed in the thematic aspects of Economic, Environmental and Social: (A) Economic The Group considers the quality and delivery of its property development units on a timely basis to be vital and has, accordingly, adopted the industry’s best practices, where the procurement of materials and services are controlled to ensure conformance to specified requirements via tender board procedures and to ensure timely delivery of performance. Kajang East Precinct 4 achieved QLASSIC scoring of 83% in April 2017 Implementation of IBS system in development of landed residential homes in Hillpark @ Shah Alam North Sustainability Statement