MKH Annual Report 2019

035 M K H B E R H A D Building Materials Trading Division managed to deliver its first trademarked product namely EGON to 329 units of Kajang East development. In addition, our Building Materials Trading Division has also established its second trademarked product namely CASCADA, a hand shower which was delivered to 552 units of our Kajang 2 Precinct 2 project. We emphasise on traceability in our operational activities by ensuring responsible sourcing from our supply chain through taking steps to understand respective practices of our suppliers, regular reviews and renegotiating terms of trade in efforts to ensure a sustainable business relationships in the long run. At our oil palm plantation, we also focus on the traceability of external crops procured under the Indonesian Plasma Programme. Our Property Development and Construction Division has developed a wide range of successful property products to include integrated townships, transit-oriented developments (“TOD”) and affordable homes that caters to various market demands. We constantly explore joint-venture opportunities to expand our land bank which enable the Group to carry out development with relatively lower upfront financial commitment. Partnering to develop projects also enable our Property Development and Construction Division the opportunity to adopt new specialised knowledge in the construction industry, which further enhances our product offerings for the greater community. We began to apply the Japanese inspired living for the development project namely Kajang 2 Precinct 2 Phase 3 “MIDORI” & Phase 4 “HIROKI”, offering a total of 184 units of double- storey terraces in Kajang 2. The Japanese inspired concept emphasize on holistic and eco-friendly living. Our Plantation Division’s continuous research and development on mechanisation over the years had enabled more efficient FFB crop evacuation, even during festive seasons when more workers go on leave and during monsoon seasons when road access is more challenging. The consistent crop evacuation in a timely manner enabled our production and sales of CPO to be better managed. Our Building Materials Trading Division continues to produce quality ironmongery for our customers to meet current needs and also to ensure a sustainable trade business among industry peers. MKH engages certified architects, engineers and contractors for its property development projects through strict tender process. In addition, our Quality Assurance personnel carry out regular inspection throughout the construction and processes in order to achieve minimum scores of 75% in QLASSIC assessments for all our developments. In FY2019, we were ranked 12th among Top 30 Property Developers in Malaysia at The Edge Malaysia’s Property Excellence Awards 2019, with high scores in good quality of development projects that create value for our home buyers and investors. Given our Plantation Division’s constant innovations, the local authorities have been making study trips to our plantation. The local province have implemented some of our innovations such as the setting up of Quick Response Units for fire prevention and control during dry season. Our Plantation Division had been recognised by the Governor of East Kalimantan Province and other local authorities as one of the most efficient plantations in East Kalimantan for its good estate management practices and innovations, as could be evidenced by our multiple awards. Besides, we also believed in establishing health and safety programs to further educate and improve on the living standards of our workers and surrounding local communities. Artist impression of ongoing double-storey terraces Kajang 2 Precinct 2 Phase 4 “HIROKI” with Japanese inspired living concept. SUSTAINABILITY REPORT