Annual Report 2023
44th Will be held at RHR Hotel @ Kajang and details as follows : Date : 12 March 2024 Time : 10.00 a.m. Venue : Emerald Ballroom, 1st Floor, RHR Hotel @ Kajang, Jalan Semenyih, 43000 Kajang, Selangor Darul Ehsan, Malaysia ANNUAL GENERAL MEETING COVER RATIONALE The design maintains continuity, showcasing the Company’s ongoing contributions to communities through enhanced corporate social responsibility initiatives. People remain at the forefront of MKH’s mission, solidifying our position as a responsible and stakeholder-centric organization. This year, the narrative emphasizes the Company’s dedication to professionalism in handling various challenges. We express our gratitude to our shareholders, directors, management, staff, customers, bankers,business associates, regulatory authorities and stakeholders for their continued support. THE ANNUAL REPORT 2023 COVER EXTENDS THE “WHERE PEOPLE MATTER” THEME, HIGHLIGHTING MKH’S UNWAVERING COMMITMENT TO STAKEHOLDERS.
CONTENTS Vision, Mission and Core Values Corporate Milestone Company Profile Awards and Achievements FY2023 Highlights Chairman’s Statement 5 Years Group Financial Highlights Corporate Information Corporate Structure Management Discussion and Analysis Report Sustainability Report Director’s Profile Profile of Key Senior Management 2 4 6 8 9 12 20 22 24 26 38 80 84 CORPORATE INFORMATION 86 105 112 116 274 282 285 286 292 117 OTHER CORPORATE INFORMATION List of Properties Analysis of Shareholdings Directors’ Shareholdings Notice of Forty-Fourth Annual General Meeting Statement Accompanying Notice of Forty-Fourth Annual General Meeting Form of Proxy Financial Statements Corporate Governance Overview Statement Audit Committee Report Statement on Risk Management and Internal Control Additional Compliance Information CORPORATE GOVERNANCE FINANCIAL
VISION & MISSION OUR VISION To be a leading corporation in delivering sustainable growth. To lead the market by continually developing and innovating quality products and projects that meet and exceed market expectations. To be responsive to market trends and customer needs. To provide conducive working environment that will encourage the application of creative energy that is guided by best industry practices. To be a good and responsible corporate citizen. To provide sustainable return to shareholders. OUR MISSION Who we are, What we do 2 MKH BERHAD | ANNUAL REPORT 2023
CORE VALUES Grounded by the promise of DELIVERING VALUE, we take pride in living by a set of shared core values that define our culture and business operations, thus helping us to create value for our clients, our people and our organization. STABLE We use our expertise, business acumen and financial resources to provide a holistic value to all stakeholders and customers. DYNAMIC We are always enthusiastic in looking out for new opportunities and delivering innovative products into the market. RESPONSIVE We proactively engage with the community to understand their needs and concerns with the aim of delivering solutions for betterment of the situations. FRIENDLY We greet our colleagues, customers and stakeholders in an approachable manner with a smile and are considerate for each other’s feeling. RELIABLE We utilize our experience and financial strength to deliver on our promises and complete all projects on time or earlier. PROFESSIONAL We deal with our stakeholders and customers in an efficient, knowledgeable and responsive manner. Property Development and Construction Plantation Property Investment Building Materials Trading MKH BERHAD | ANNUAL REPORT 2023 3
CORPORATE MILESTONE 2000 • Established Furniture Manufacturing Division in China: Vast Furniture Manufacturing (Kunshan) Co. Ltd 1979 - 2000 1979 • Established as private limited company: Srijang Bena Sdn Bhd • Built first landed residential development: Taman Bukit Indah 1983 • Established building materials trading division: Metro Kajang Trading Sdn Bhd 1993 • Built first joint venture development with Selangor state government: Bandar Teknologi Kajang • Built first highrise development in Kajang 1995 • Srijang Bena Sdn Bhd rebranded: Metro Kajang Holdings Berhad • Officially listed on Bursa Malaysia as “MKH” under stock code “6114” 1994 • Established property investment sector • Bulit first shopping complex in Kajang: Plaza Metro Kajang 4 MKH BERHAD | ANNUAL REPORT 2023
CORPORATE MILESTONE 2001 - 2023 2008 • Established oil palm plantation sector • Acquired PT Maju Kalimantan Hadapan 2014 • Metro Kajang Trading Sdn Bhd rebranded: MKH Building Materials Sdn Bhd 2020 • PT Maju Kalimantan Hadapan received Gold Award for Best Foreign Owned Company 2023 • PT Maju Kalimantan Hadapan received the “GREEN” rating under the Company Rating Performance Assessment Program in Environmental Management for year 2022 – 2023 2011 • Metro Kajang Holdings Berhad rebranded: MKH Berhad 2017 • PT Maju Kalimantan Hadapan achieved Indonesian Sustainable Palm Oil certification 2007 • Built second shopping complex in Kajang: Metro Point Complex 2022 • PT Sawit Prima Sakti achieved Indonesia Sustainable Palm Oil certification MKH BERHAD | ANNUAL REPORT 2023 5
COMPANY PROFILE Founded in 1979, MKH Berhad (“MKH”) is a public listed Malaysian company with its roots in Kajang, Selangor. Over the years, MKH has cultivated a strong and recognizable brand presence in Selangor, Kuala Lumpur and East Kalimantan, Indonesia. As a prominent property developer, MKH has played a vital role in the transformation of Kajang, offering a diverse property portfolio that includes meticulously planned Transit Oriented Development (“TOD”), thriving townships, and integrated high-rise buildings across the Klang Valley. Our commitment to growth and creating sustainable value for all stakeholders led us to diversify in 2008, when we ventured into oil palm cultivation in East Kalimantan, Indonesia. Beyond real estate and oil palm cultivation the MKH Group is also involved in property investment, building materials trading, and furniture manufacturing. In our pursuit of value creation for our homeowners, MKH consistently explores innovative approaches to elevate the standards of living. Our properties incorporate eco-friendly features, and many are strategically situated near KTM commuter or MRT stations for convenience and accessibility. We specialize in crafting homes designed to accommodate multi-generational living, ensuring that families can thrive in comfortable and adaptable spaces. MKH’s oil palm cultivation efforts extend across two estates in East Kalimantan, managed under PT Maju Kalimantan Hadapan (“PT MKH”) and PT Sawit Prima Sakti (“PT SPS”). These estates collectively cover approximately 18,205 hectares (equivalent to 44,986 acres) and operate a 90 metric tonnes (“MT”) per hour crude palm oil (“CPO”) mill and a jetty. Notably, our estates have consistently demonstrated strong performance, with fresh fruit bunches (“FFB”) yields averaging between 24 MT to 30 MT per hectare annually. For the financial year 2023 (“FY2023”), our CPO production reached a commendable 89,000 MT. FFB yields averaging between 24 MT to 30 MT per hectare annually. For the financial year 2023 (“FY2023”), our CPO production reached a commendable 89,000 MT. 6 MKH BERHAD | ANNUAL REPORT 2023
Our property investment division, established in 1996, is anchored by two eco-conscious shopping malls, Plaza Metro Kajang and Metro Point Complex. Nestled in the heart of Kajang town, our shopping malls have taken a forward-looking approach by embracing solar energy. This green initiative holds the promise of not only reducing operational costs but also championing environmental responsibility. The installation of solar panels marks a long-term investment that brings substantial benefits to both our company and the planet. These malls have evolved into dynamic community centres that not only provide shopping, leisure and dining options but also reflect our commitment to a sustainable and eco-conscious future. In 2023, Metro Point Complex installed Electric Vehicle (“EV”) charging stations for our customers. This move aligns with our commitment to create a more sustainable and environmentally friendly future. COMPANY PROFILE MKH Building Materials Sdn Bhd traces its beginnings back over 40 years ago when it served as a purchasing division for the MKH Group. Its primary purpose is to support in-house and external projects. It has firmly established itself as the key purchasing arm for building materials for the Group. We achieve this by continually developing and innovating quality products that not only meet but exceed market expectations and remain responsive to market trends and customer needs, guided by the best industry practices. At MKH, we are wholeheartedly committed to nurturing enduring relationships with our stakeholders and the larger community towards a sustainable future. Artist’s impression of the playground at Akina @ Kajang 2 Precinct 3 MKH BERHAD | ANNUAL REPORT 2023 7
AWARDS AND ACHIEVEMENTS Property In FY2023, MKH ranked 12th among Top 30 Property Developers in Malaysia at The Edge Malaysia Top Property Developers Awards 2023 with high scores in innovation and creativity for development projects that create value for our home buyers and investors. Notable Awards Received by Plantation Division 1. PIAGAM BUPATI PT MAJU KALIMANTAN HADAPAN For its Commitment in Fulfilling the Obligation to Facilitate Plantation Development for Surrounding Communities in 2023. 2. PT MAJU KALIMANTAN HADAPAN Received the “GREEN” rating under the Company Rating Performance Assessment Program in Environmental Management for the year 2022 – 2023. 8 MKH BERHAD | ANNUAL REPORT 2023
FY2023 HIGHLIGHTS Achieved Group Revenue of RM1,063.8 million and Profit Before Tax of RM117.2 million. Contributed approximately RM2,916,802 through community engagement that supported beneficiaries in Malaysia and Indonesia which included education institutions, local communities and non-profit organizations. 185 students from 39 schools in Hulu Langat district benefited financially to ease their education needs. Metro Point Complex invested in EV charging stations in line with the Group’s commitment towards a more environmentally sustainable future. Top 12th Developer in Malaysia During the The Edge Malaysia Top Property Developers Award 2023. $ Enhanced the Plantation & Mill Management system (“PMMS”) Apps to track evacuation of FFB from field to the mill and Contractor Management System to monitor contractors’ trucks for more efficient FFB crop evacuation. PT Maju Kalimantan Hadapan received the “GREEN” rating under the Company Rating Performance Assessment Program in Environmental Management for year 2022 – 2023. MKH BERHAD | ANNUAL REPORT 2023 9
55% Contribution To Total Group Revenue DEVELOPMENT & CONSTRUCTION 48% Total Segment Profit Before Tax Contribution PROPERTY
While our products have evolved over the past few decades to meet the ever-changing needs of the people, our brand promise remained the same - to deliver value to our stakeholders in the aspects of quality, affordability and practicality and it is on the same principle that we stood by in our exploration and establishment of new business opportunities. AS A PROPERTY DEVELOPER THAT STARTED OUT IN KAJANG, WE BUILT OUR FIRST RESIDENTIAL DEVELOPMENT IN 1979, FOLLOWED BY OUR FIRST HIGH-RISE DEVELOPMENT IN 1993 AND KAJANG’S FIRST SHOPPING COMPLEX IN 1994.
CHAIRMAN’S STATEMENT We are committed to making a positive impact and we prioritize not only financial achievements but also social and environmental considerations in the decisions that we make. With this approach, we create thriving sustainable businesses that contributes positively to the Group, the society and the planet. It has been another remarkable year for MKH, characterized by our resilience which is reflected in our financial performance and the trust placed in us by our valued stakeholders. For FY2023, despite a challenging business environment, the Group achieved a commendable revenue of RM1,063.8 million and a profit before tax (“PBT”) of RM117.2 million. These achievements were made possible through strategic alignment of our vision and objectives, a strong commitment to sustainable growth and a steadfast focus on operational excellence. This success stands as a testament to the unwavering dedication and hard work of our directors, management and staff who have contributed tirelessly to our achievements. “ ” DEAR SHAREHOLDERS, On behalf of the Board of Directors and the management, it is my great pleasure to present to you the Annual Report of MKH Berhad (“MKH” or “the Group”) for the financial year ended 30 September 2023 (“FY2023”). Our Group Executive Chairman, Tan Sri Dato’ Alex Chen (in grey shirt) conducting field visit at our plantation. The harvesting of FFB are carried out in accordance to strict standard operating procedure to ensure optimum FFB quality, in order to achieve high oil extraction rate (“OER”) 12 MKH BERHAD | ANNUAL REPORT 2023
For a more in-depth review of the Group’s performance, please refer to the “Management Discussion and Analysis Report” in this Annual Report. Malaysia’s gross domestic product (“GDP”) is expected to grow by 4% to 5% in 2024 after registering a 3.3% growth in the third quarter of 2023, to be driven by favourable labour market conditions, investment projects, improvement in global technology cycle and tourism. The Group continue to focus on the strong demand for affordable housing, with emphasis on delivering affordability in prime locations with appropriate product mix. For FY2023, the Property Development and Construction Division achieved notable results, with revenue of RM587.6 million and PBT of RM56.6 million. In today’s ever-evolving real estate landscape, the key to success lies not only in adapting to market challenges but also in envisioning innovative strategies that can transform those challenges into opportunities. One such strategy is Transit-Oriented Development (“TOD”). CHAIRMAN’S STATEMENT In response to the strong interest in TOD, MKH has been actively engaged in the development of TOD projects strategically situated along the Klang Valley transit system. Some of our noteworthy service apartment projects in this category include Nexus @ Taman Pertama in Cheras, MKH Boulevard II in Kajang, Nexus @ Kajang Station, MIRAI Residences @ Kajang 2 Precinct 1 and TR2 Residence @ Jalan Tun Razak in Kuala Lumpur. The Property Development and Construction Division achieved notable results, with revenue of RM587.6 million and PBT of RM56.6 million. Artist’s impression of NEXUS @ Taman Pertama with a stunning view of Kuala Lumpur city centre MKH BERHAD | ANNUAL REPORT 2023 13
To extend our market presence and strengthen engagement with prospective buyers, the Group has conducted exciting marketing campaigns across digital and social media platforms. Among these initiatives was the “MKH Smart Up Your Home” campaign from May to September 2023. This campaign offered attractive incentives across 11 projects, including Nexus @ Taman Pertama, TR2 Residence @ Jalan Tun Razak, MIRAI Residences @ Kajang 2 Precinct 1, Nexus @ Kajang Station (Tower B) and Akina @ Kajang 2 Precinct 3. This campaign not only amplifies our reach but also provides attractive incentives for our valued customers. It marks another step in our commitment in delivering exceptional value and experiences. The Group has locked-in unbilled sales value of RM841.2 million from which attributable sales revenue and profits will be recognized progressively. CHAIRMAN’S STATEMENT As at 30 September 2023, the Group has lockedin unbilled sales value of RM841.2 million from which attributable sales revenue and profits will be recognized progressively. These projects include Hillpark Shah Alam, MKH Boulevard II, Nexus @ Kajang Station, Kajang East Avenue Shops, MIRAI Residences @ Kajang 2 Precinct 1, Nexus @ Taman Pertama, TR2 Residence @ Jalan Tun Razak and Akina @ Kajang 2 Precinct 3. For FY2023, the Plantation Division recorded a revenue of RM338.0 million and PBT of RM37.5 million. Recognizing the importance of innovation in creating value for our businesses, our oil palm plantation in East Kalimantan, Indonesia has embraced mechanical assisted fresh fruit bunches (“FFB”) collection and software apps for monitoring. The Plantation Division has also enhanced the PMMS Apps for tracking FFB evacuation from field to mill and the Contractor Management System for monitoring contractors’ trucks, optimizing FFB crop evacuation efficiency. Drones are utilized to enhance agricultural practices and monitoring, enabling comprehensive field analysis, palm growth assessment, palm census, road access monitoring and water flow management. These measures contribute to efficient estate management and we continue to focus on efforts to maximize CPO production and operational efficiency. Metro Point Complex in Kajang town 14 MKH BERHAD | ANNUAL REPORT 2023
The Plantation Division recorded a revenue of RM338.0 million and PBT of RM37.5 million. CHAIRMAN’S STATEMENT The Indonesia’s new administrative capital, Nusantara, in East Kalimantan signifies a positive development for the region where our plantation is located. Businesses are well positioned to benefit from the increased economic activities, job creation and improved infrastructure associated with this new capital. Our Building Materials Trading Division has introduced two trademarked product lines, EGON ironmongeries and CASCADA sanitary fittings, designed to meet the aesthetic requirements of modern residential and commercial projects, enhancing the overall prestige of the property. This division also produces ready-mix concrete to our MKH Boulevard II and MIRAI Residences @ Kajang 2 Precinct 1 projects. Up to date, it has surpassed 100,000m3 of ready-mix concrete production. This financial year also marks a remarkable year for this division as it has attained its record RM100 million annual sales revenue which further reinforce its success in the trading industry. Aerial view of our plantation estate Estate Managers and Assistant Managers MKH BERHAD | ANNUAL REPORT 2023 15
CHAIRMAN’S STATEMENT For FY2023, the Group contributed approximately RM2,916,802 in community engagement initiatives benefiting educational institutions, local communities and charitable organizations. We provide education facilities for the children of our plantation workers As a responsible corporate citizen, MKH places a strong emphasis on Corporate Social Responsibility (“CSR”). For FY2023, the Group contributed approximately RM2,916,802 in community engagement initiatives in Malaysia and Indonesia benefiting educational institutions, local communities and charitable organizations. For a comprehensive overview of MKH’s sustainability efforts, please refer to the “Sustainability Report” in this Annual Report, from page 38 to page 79. For FY2023, a first interim dividend of 4 sen per ordinary share, totaling approximately RM23.1 million, was declared on 29 November 2023, and paid on 10 January 2024. This dividend distribution represents around 30.97% of the Group’s net profit attributable to owners of the parent. We are confident in our ability to maintain sustainable development with our TOD model. We are optimistic that our strategy of offering affordable housing in prime locations with TOD concept will continue to receive strong demand. We are optimistic that CPO price will remain well supported in 2024 with the current CPO price trading at approximately RM3,600 per MT (net of export levy and duty) in Indonesia which augurs well for our Plantation Division. This positive projection can be attributed to the ongoing strong demand for palm oil and tighter global supply. Our shareholders have on 28 November 2023 approved the proposed listing of and quotation for the entire enlarged issued share capital of MKH Oil Palm (East Kalimantan) Berhad on the Main Market of Bursa Malaysia Securities Berhad (“Proposed Listing”) and the Proposed Listing is expected to be completed by the 2nd quarter of 2024. On behalf of the Board of Directors, I wish to express our sincere appreciation and gratitude to our esteemed shareholders, loyal customers, dedicated bankers, valued business associates and the authorities for their unwavering support of the Group. We are optimistic that CPO price will remain well supported in 2024 with the current CPO price trading at approximately RM3,600 per MT (net of export levy and duty) in Indonesia which augurs well for our Plantation Division. 16 MKH BERHAD | ANNUAL REPORT 2023
I also extend my heartfelt appreciation to my fellow Board members, the dedicated management team and all our employees, whose unwavering commitment and collaborative efforts have been instrumental to the Group’s success. I firmly believe that MKH Berhad is well-positioned to achieve even greater success in 2024, thanks to the continued support and collaboration of all our stakeholders, management and staff. Together, we look forward to another year of growth and prosperity. Thank you. Tan Sri Dato’ Alex Chen Kooi Chiew Group Executive Chairman CHAIRMAN’S STATEMENT Artist’s impression of NEXUS @ Kajang, strategically located adjacent to Kajang MRT & KTM station MKH BERHAD | ANNUAL REPORT 2023 17
INVESTMENT PROPERTY 3.0% Contribution To Total Group Revenue 9.0% Total Segment Profit Before Tax Contribution
SINCE 1996, THIS DIVISION REPRESENTS ONE OF THE GROUP’S CONTRIBUTORS THAT MAINTAIN AN AVERAGE ANNUAL RENTAL YIELD OF 3% TO 4% FROM VARIOUS COMMERCIAL PROPERTIES LOCATED IN KAJANG AND ACROSS THE KLANG VALLEY. Our two shopping complexes located in the Kajang town centre, Plaza Metro Kajang and Metro Point Complex offer an extensive range of leisure and eatery conveniences to over 100,000 households in the Kajang community. Besides retail outlets, shop-offices, parking spaces and a 6-storey hotel, we also own factory building in China which are currently used for furniture manufacturing and rental. Other properties include commercial lands in Kajang and Semenyih that are leased to hypermarket and fast food restaurants and commercial land together with building leased to Rafflesia International School. We have a total net lettable area of approximately 430,000 sq. ft. with a good tenancy rate of more than 90%.
5 YEARS GROUP FINANCIAL HIGHLIGHTS 2023 RM’000 2022 RM’000 2021 RM’000 2020 RM’000 2019 RM’000 INCOME STATEMENT Revenue 1,063,796 968,126 913,572 911,926 1,121,657 Profit Before Taxation 117,197 171,254 161,054 116,476 158,373 Profit After Taxation 81,278 128,747 102,708 66,267 97,477 Profit Attributable to the Shareholders of the Company 74,596 112,413 80,435 41,737 82,561 BALANCE SHEET Issued and Paid up Capital 654,459 654,459 654,459 654,459 654,459 Shareholders’ Equity 1,860,686 1,807,541 1,706,069 1,632,609 1,615,885 RATIOS Single Tier Dividend Per Share (sen) 4.00 4.00 3.50 3.00 4.00 @ Net Earnings Per Share (sen) 12.92 19.47 13.93 7.22 14.25 Net Assets Per Share (RM) 3.22 3.13 2.95 2.83 2.79 Debt/Equity ratio (%) 20.4 23.3 32.2 40.0 42.4 Return on Shareholders’ Equity (%) 4.0 6.2 4.7 2.6 5.1 @ Attributable to the equity holders of the Company 20 MKH BERHAD | ANNUAL REPORT 2023
2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 Revenue (RM’000) Profit Attributable to the Shareholders of the Company (RM’000) Total equity attributable to shareholders of the Company (RM’000) Profit Before Taxation (RM’000) 5 YEARS GROUP FINANCIAL HIGHLIGHTS 911,926 913,572 968,126 1,063,796 158,373 116,476 161,054 171,254 117,197 82,561 41,737 80,435 112,413 74,596 1,615,885 1,632,609 1,706,069 1,807,541 1,860,686 Artist’s impression of MIRAI Residences @ Kajang 2 Precinct 1 1,121,657 MKH BERHAD | ANNUAL REPORT 2023 21
CORPORATE INFORMATION Y. Bhg. Tan Sri Dato’ Chen Kooi Chiew @ Cheng Ngi Chong Group Executive Chairman Y. Bhg. Tan Sri Datuk Chen Lok Loi Group Managing Director Y. Bhg. Datuk Chen Fook Wah Deputy Managing Director Y. Bhg. Dato’ Lim Hong Shuan Senior Independent Non-Executive Director Ms. Hoon Shat Mei Independent Non-Executive Director Ms. Lee Pei Yee Independent Non-Executive Director En. Jeffrey bin Bosra Non-Independent Non-Executive Director Audit Committee • Ms. Hoon Shat Mei (Chairperson) • Y. Bhg. Dato’ Lim Hong Shuan (Member) • Ms. Lee Pei Yee (Member) • En. Jeffrey bin Bosra (Member) Nomination Committee • Y. Bhg. Dato’ Lim Hong Shuan (Chairman) • Ms. Hoon Shat Mei (Member) Remuneration Committee • Y. Bhg. Dato’ Lim Hong Shuan (Chairman) • Ms. Lee Pei Yee (Member) Chief Financial Officer Kok Siew Yin (MIA 15343) Group Company Secretary Tan Wan San (MIA 10195) (SSM Practicing Certificate No. 201908001048) External Auditors MKH Berhad & Certain Subsidiaries Deloitte PLT (AF 0080) Level 16, Menara LGB 1, Jalan Wan Kadir Taman Tun Dr. Ismail 60000 Kuala Lumpur Tel No : (603) 7610 8888 Fax No: (603) 7726 8986 Certain Subsidiaries of MKH Berhad Ricky Liew & Associates (AF 2322) C-19-3A, Floor 3A Block C, Dataran 32 No. 2, Jalan 19/1 46300 Petaling Jaya Selangor Darul Ehsan Tel No : (603) 7931 8919 Fax No: (603) 7960 2993 22 MKH BERHAD | ANNUAL REPORT 2023
Panel Solicitors • Khaled Mutang Chan & Lim • Ling & Theng Book • Markiman & Associates • Michael Chen & Co. • Steven Tai, Wong & Partners Principal Bankers • Affin Bank Berhad • Al Rajhi Banking & Investment Corporation (Malaysia) Bhd • AmBank (M) Berhad • AmBank Islamic Berhad • Bank of China (Malaysia) Berhad • Bank Islam Malaysia Berhad • Bank Muamalat Malaysia Berhad • CIMB Islamic Bank Berhad • Hong Leong Bank Berhad • Hong Leong Islamic Bank Berhad • HSBC Amanah Malaysia Berhad • HSBC Bank Malaysia Berhad • Industrial and Commercial Bank of China (Malaysia) Berhad • Malayan Banking Berhad • Maybank Islamic Berhad • OCBC Al-Amin Bank Berhad • OCBC Bank (Malaysia) Berhad • RHB Bank Berhad • RHB Islamic Bank Berhad • United Overseas Bank (Malaysia) Bhd Registrar Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite Avenue 3, Bangsar South No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel No : (603) 2783 9299 Fax No: (603) 2783 9222 Registered Office Suite 1, 5th Floor Wisma MKH, Jalan Semenyih 43000 Kajang Selangor Darul Ehsan Tel No : (603) 8737 8228 Fax No: (603) 8736 5436 Stock Exchange Listing Main Market of Bursa Malaysia Securities Berhad Stock Code : MKH Stock No : 6114 Corporate Website www.mkhberhad.com CORPORATE INFORMATION MKH BERHAD | ANNUAL REPORT 2023 23
CORPORATE STRUCTURE AS AT 15 JANUARY 2024 PROPERTY AND CONSTRUCTION DIVISION Achieve Acres S/B (85%) Aliran Perkasa S/B (100%) Amona MKH Ventures S/B (50.00001%) Budi Bidara S/B (100%) Dapat Jaya Builder S/B (100%) Rimbunan Melati S/B (45%) Everland Asia Development S/B (100%) Gabung Wajib S/B (100%) Alif Mesra S/B (65%) Amona Metro Development S/B (60%) Temara Pekeliling S/B (84%) Danau Saujana S/B (65%) Gerak Teguh S/B (100%) GK Resort Berhad (100%) PNSB-GK Resort S/B (70%) Intelek Kekal (M) S/B (100%) Intra Tegas (M) S/B (100%) Knowledge Builder S/B (60%) Kajang Resources Corporation S/B (100%) MKH Property Ventures S/B (51%) Panasonic Homes MKH Malaysia S/B (49%) Kumpulan Indah Bersatu S/B (100%) Palga S/B (100%) Hiliran Juara S/B (100%) Metro K.L. City S/B (100%) Metro Kajang Construction S/B (100%) MKH Development S/B (100%) MKH Land (Aust) Pty Ltd (100%) Nexus Starship S/B (100%) Quantum Density S/B (50.0004%) Pelangi Binaraya S/B (50.0002%) Pelangi Semenyih S/B (100%) Pelangi Seri Alam Development S/B (100%) Hillpark Resources S/B (100%) Perkasa Bernas (M) S/B (100%) Daksina Harta S/B (40%) Petik Mekar S/B (100%) Serba Sentosa S/B (100%) Serentak Maju Corporation S/B (100%) Srijang Kemajuan S/B (99.99%) Stand Allied Corporation S/B (100%) Sumber Lengkap S/B (100%) Suria Villa S/B (100%) Vista Haruman Development S/B (55%) 24 MKH BERHAD | ANNUAL REPORT 2023
NON-PROPERTY DIVISION MKH Oil Palm (East Kalimantan) Berhad (94.43%) PT Maju Kalimantan Hadapan (100%) PT Sawit Prima Sakti (100%) Hala Maju S/B (100%) Metro Kajang (Oversea) S/B (100%) PT Nusantara Makmur Jaya (100%) Restu Mesra S/B (100%) Vast Furniture Manufacturing (Kunshan) Co. Ltd. (100%) Global Landscape Creation S/B (100%) MKH Plantation S/B (100%) Intelek Murni (M) Berhad (100%) Metro Nusantara S/B (100%) Metro Readymix S/B (100%) Metro Tiara (M) S/B (100%) MKH Building Materials S/B (100%) Sunway MKH Marketing S/B (49%) MKH Credit Corporation S/B (100%) MKH Food S/B (100%) MKH Management S/B (100%) MKH Resources S/B (100%) Srijang Indah S/B (100%) Laju Jaya S/B (100%) Maha Usaha S/B (100%) CORPORATE STRUCTURE AS AT 15 JANUARY 2024 MKH BERHAD | ANNUAL REPORT 2023 25
MANAGEMENT DISCUSSION AND ANALYSIS REPORT This Report provides a discussion and analysis of the Group’s financial performance for the financial year ended 30 September 2023 (“FY2023”), including explanations for substantial fluctuations over the previous financial year. The Group’s principal business segments, which remained unchanged from the preceding year, comprise Property Development and Construction; Plantation; Hotel and Property Investment; and Others. The segment “Others” comprises Trading, Manufacturing, Investment Holding and other non-reportable operations. 26 MKH BERHAD | ANNUAL REPORT 2023
MANAGEMENT DISCUSSION AND ANALYSIS REPORT FY2023 FINANCIAL HIGHLIGHTS The Group’s revenue and PBT for the financial year under review and the preceding year are summarised as follows: 2023 RM’000 2022 RM’000 Changes (%) Group Revenue 1,063,796 968,126 9.9 Segments • Property Development and Construction 587,648 538,450 9.1 • Plantation 337,981 315,817 7.0 • Hotel and Property Investment 32,518 30,034 8.3 • Others 105,649 83,825 26.0 Group PBT 117,197 171,254 (31.6) Segments • Property Development and Construction 56,585 64,723 (12.6) • Plantation 37,469 76,623 (51.1) • Hotel and Property Investment 10,470 10,472 (0.02) • Others 12,673 19,436 (34.8) For the financial year ended on 30 September 2023, despite the Group experience a growth in revenue by 9.9% amounting to RM1,063.8 million (FY2022: RM968.1 million), the Group recorded lower PBT by 31.6% amounting to RM117.2 million (FY2022: RM171.3 million) mainly due to absent of sale of land held for property development from Property Development and Construction Division and lower gross profit from Plantation Division as a result of lower average selling price of CPO and palm kernel and higher production cost. The Group recorded unrealised foreign exchange losses of RM0.5 million, as compared to the preceding year’s unrealised foreign exchange gains of RM4.7 million primarily from the Plantation Division, which resulted from the weakening of the Indonesian Rupiah (“IDR”) against Ringgit Malaysia (“RM”). As at 30 September 2023, the exchange rate stood at RM1:IDR3,300, as compared to RM1:IDR3,281 as at 30 September 2022. Excluding the unrealised foreign exchange losses of RM0.5 million (FY2022: gain of RM4.7 million), the decreased by 29.4% to RM117.7 million (FY2022: RM166.6 million) mainly due to absent of sale of land held for property development from Property Development and Construction Division, lower gross profit from the Plantation Division due to the decrease in average CPO selling price to RM3,348/MT (FY2022: RM3,847/ MT) and palm kernel selling price to RM1,589/MT (FY2022: RM2,627/MT) and increase in production costs, net changes in fair value loss on investment properties of RM0.9 million (FY2022: net changes in fair value gain on investment properties of RM2.4 million). The result was mitigated by higher CPO sales volume of 92,607MT (FY2022: 71,636MT) and higher palm kernel sales volume of 17,603MT (FY2022: 15,305MT). The segment below discusses further details of the Group’s financial performance. MKH BERHAD | ANNUAL REPORT 2023 27
LIQUIDITY AND CAPITAL RESOURCES For FY2023, the cash and cash equivalents of the Group decreased by RM42.1 million to RM349.9 million as at 30 September 2023 (FY2022: decreased by RM24.9 million to RM390.0 million as at 30 September 2022), which was culminated from the following cash flows activities: Net cash generated from/ (used in) 2023 RM’000 2022 RM’000 Changes (%) Operating activities 143,690 239,419 (40.0) Investing activities (69,443) (99,927) 30.5 Financing activities (116,359) (164,352) 29.2 (Decrease)/Increase in cash and cash equivalents (42,112) (24,860) (69.4) For FY2023, the Group recorded lower cashflows generated from operating activities following the lower profit contribution from the Plantation Division and ongoing project developments. The cash flows used in financing activities decreased following a net repayment of bank borrowings totalling RM52.2 million in FY2023 (FY2022: RM130.3 million) and the set off of payment made to non-controlling interests for capital reduction, redemption of redeemable preference shares and dividend totalling RM49.9 million (FY2022: RM27.9 million). The Group’s capital resources comprise primary cash flows generated from operating activities, cash and cash equivalents, term deposits, fixed-income funds and available lines of credit. As at 30 September 2023, the Group’s net gearing improved to 0.01 times (FY2022: 0.02 times). The Group continues to uphold a prudent approach towards managing its capital resources to ensure adequacy in meeting operational requirements and capital expenditure from time to time. MANAGEMENT DISCUSSION AND ANALYSIS REPORT Aerial view of our CPO Mill and Management Office 28 MKH BERHAD | ANNUAL REPORT 2023
SEGMENT RESULTS AND ANALYSIS Property Development and Construction Despite the higher revenue of RM587.6 million (FY2022: RM538.5 million), this division recorded a lower PBT of RM56.6 million (FY2022: RM64.7 million) mainly due to absent of sale of land held for property development and absent of fair value gains from transfer of inventories to investment properties (FY2022: fair value gain of RM3.0 million). As at 30 September 2023, the Group has lockedin unbilled sales value of RM841.2 million from which attributed sales revenue and profits will be recognized progressively as their development percentage of completion progresses and were mainly contributed from the ongoing development projects namely Hill Park Shah Alam (RM50.3 million), Nexus @ Kajang Station (RM17.3 million), MIRAI Residences @ Kajang 2 Precinct 1 (RM182.7 million), Nexus @ Taman Pertama (RM84.7 million), TR2 Residence @ Jalan Tun Razak (RM363.1 million), Akina @ Kajang 2 Precinct 3, Phase 1 (RM80.6 million), Kajang East Avenue 2 shops (RM42.7 million) and Akina @ Kajang 2 Precinct 3 Phase 2 (RM19.8 million). The Group is well positioned to unlock the value of its current development landbank for the transit-oriented development projects strategically located in Kuala Lumpur, Kajang and Cheras. MIRAI Residences @ Kajang 2 Precinct 1 Phase 1 and 2, launched in September 2020 and February 2021 with a GDV of approximately RM471.4 million has achieved a take-up rate of approximately 80%. Nexus @ Taman Pertama MIRAI Residences @ Kajang 2 Precinct 1 Phase 1 and 2, launched in September 2020 and February 2021 with a GDV of approximately RM471.4 million has achieved a take-up rate of approximately 80%. with a GDV of approximately RM258.4 million launched in November 2020, achieved a take-up rate of approximately 45%. Iris @ Hillpark Shah Alam with GDV of approximately RM127.1 million launched in September 2021 has achieved a 100% take-up rate. TR2 Residence @ Jalan Tun Razak with GDV of approximately RM507.3 million launched in November 2021 (Phase 1) (Block A - 454 units of apartments) and June 2022 (Phase 2) (Block B - 464 units of apartments) has achieved a take-up rate of approximately 85%. Akina @ Kajang 2 Precint 3 Phase 1 with GDV of approximately RM198.5 million launched in September 2022 achieved a take-up rate of approximately 70%. Kajang East Avenue 2 with GDV of approximately RM46.3 million launched in March 2023 achieved a take-up rate of approximately 92%. Akina @ Kajang 2 Precinct 3 Phase 2 with GDV of RM129.1 million launched in July 2023 achieved a take-up rate of approximately 15%. Paired with good product design and strategic location with lifestyle facilities, our ongoing projects recorded a good average take-up rate of 76%. MANAGEMENT DISCUSSION AND ANALYSIS REPORT Artist’s impression of basketball court, part of facilities at MIRAI Residences @ Kajang 2 Precinct 1 Artist’s impression of NEXUS @ Kajang Station with swimming pool view MKH BERHAD | ANNUAL REPORT 2023 29
Plantation The following table summarises the performance of the division for the past three (3) years: Production for Estate FY2023 FY2022 FY2021 FFB – PT Maju Kalimantan Hadapan (MT) 388,000* 363,000* 419,000* FFB – PT Sawit Prima Sakti (MT) 22,000* 20,000* 22,000* FFB – GROUP (MT) 410,000* 383,000* 441,000* CPO production (MT) 89,000* 75,000* 89,000* Average CPO Price per MT RM3,348 RM3,847 RM2,945 Oil Extraction Rate (“OER”) 20.56% 18.51% 19.45% FFB Yield/hectare per year (Overall) 24 MT/ha 23 MT/ha 27 MT/ha Note: Figures exclude CPO purchased from outside parties for resale. *rounded up to nearest thousand For FY2023, the Plantation Division recorded a higher 7.0% growth in revenue, generating RM338.0 million compared to RM315.8 million in the previous FY2022. This growth can be attributed to an increased sales volume of CPO, driven by increase in FFB production and higher OER extraction rate. However, the division’s PBT experienced a decline of 51.1% to RM37.5 million (FY2022: RM76.6 million), primarily due to a lower average selling price of CPO of RM3,348/MT (FY2022: RM3,847/MT) and palm kernel of RM1,589/MT (FY2022: RM2,627/MT) and increase in average production cost mainly due to the following:- a. higher fertilizer costs and labour due to more fertilizer application during favourable weather during FY2023; b. increase in diesel costs; and c. increase in maintenance due to post-monsoon deepening and widening of drains for better discharge of water. Additionally, in FY2023, the Plantation Division incurred unrealised foreign exchange losses amounting to RM0.5 million as compared to the previous financial year FY2022 which recorded unrealised foreign exchange gains of RM4.7 million due to the weakening of the IDR against RM. Weather conditions play a crucial role in agricultural production. In the Kalimantan region of Indonesia, specifically in East Kalimantan where our oil palm plantation is located, there has been above-average rainfall during FY2021, FY2022 and first half of FY2023. This wet weather condition has resulted in lower crop production in FY2022. The weather has since normalized since March 2023 and our FFB production has increased. One of the measures implemented is the enhancement of our water management system. This ensures that adequate water supply is maintained for the oil palm trees, especially during periods of dry weather and release of excess water during the wet season. Additionally, our division has fine-tuned the Standard Operating Procedures (“SOP’s”) for harvesting. This allows us to optimize the timing and methods of harvesting, taking into account the specific weather conditions. By implementing these measures, we are able to minimize the effects of weather changes and maintain a sustainable level of production. Ripe fresh fruit bunches ready for harvesting MANAGEMENT DISCUSSION AND ANALYSIS REPORT 30 MKH BERHAD | ANNUAL REPORT 2023
These efforts have contributed to an increase in FFB production and OER for FY2023, enabling our Plantation Division to record a 7% growth in revenue for FY2023. As the weather normalizes, we expect further increases in FFB production and OER, which will positively contribute to our revenue and profit. As at 30 September 2023, the total area planted for this division was approximately 17,009 hectares and all of these plantations have reached the mature age for harvest. Specifically, PT MKH has 15,013 hectares of oil palm trees planted aged between 12 to 15 years old, while PT SPS has 1,996 hectares of oil palm trees planted between 3 to 12 years old. Hotel and Property Investment For FY2023, this division recorded a higher revenue of RM32.5 million (FY2022: RM30.0 million) and PBT of RM10.5 million (FY2022: RM10.5 million) mainly due to inclusion of fair value gain on transfer from property, plant and equipment to investment properties of RM2.8 million and net changes in fair value loss on investment properties of RM0.9 million in the current year (FY2022: net changes in fair value gain on investment properties of RM2.4 million). MANAGEMENT DISCUSSION AND ANALYSIS REPORT Field training with Estate Managers and Assistant Managers on the harvesting standards of FFB Convenience and comfort at RHR Hotel @ Kajang, situated in the heart of Kajang town Plantation (Cont’d) MKH BERHAD | ANNUAL REPORT 2023 31
PROSPECTS The Board is optimistic and expects to achieve satisfactory results for the financial year ending 30 September 2024 (“FYE2024”). Property Development and Construction With the locked-in unbilled sales of RM841.2 million (FY2022: RM906.2 million), the Group is well positioned for FYE2024 with new and ongoing developments such as MIRAI Residences @ Kajang 2 Precinct 1, Nexus @ Taman Pertama, TR2 Residence @ Jalan Tun Razak, Hill Park Shah Alam, Nexus @ Kajang Station, Kajang East Avenue 2 Shops, Akina @ Kajang 2 Precinct 2 Phase 1 and Phase 2. These sales will ensure sustainable income recognition for the next two years, with additional contributions from strategically located new projects in Kuala Lumpur, Cheras and Kajang. The Group’s planned launches in FYE2024 comprising of high rise service apartments and retail commercial shops development known as Gaya Residency @ Kajang 2 Precinct 2 (Phase 2), Residensi Naluri @ Mahkota Cheras (Phase 1) and Kajang 2 Precinct 3 (RSKU), landed retail shops development known as Kajang 2 Precinct 3 (Phase 4), landed residential development known as Annya @ Kajang 2 Precinct 3 (Phase 3) and Kajang East Precinct 1 (Phase 3B) with a total GDV of approximately RM640.0 million will be phased according to prevailing market sentiments. Plantation The CPO prices remain well supported due to good demand and tighter supply with current CPO price trading at approximately RM3,600/MT (net of export levy and duty) in Indonesia which augurs well for our Plantation Division. With the anticipated higher CPO production in FYE2024 due to the weather normalization and enhancement of our production efficiencies, we expect our plantation division to deliver better results for FYE2024. The Group will continue to expand on the use of mechanical assisted collection of FFB to increase production efficiencies and to maximize oil extraction at our CPO mill to take advantage of the favourable CPO price. The CPO prices remain well supported due to good demand and tighter supply with current CPO price trading at approximately RM3,600/MT (net of export levy and duty) in Indonesia which augurs well for our Plantation Division. MANAGEMENT DISCUSSION AND ANALYSIS REPORT Artist’s impression of Akina @ Kajang 2 Precinct 3 Phase 1A & 1B Our harvesters loading freshly harvested fruit bunches 32 MKH BERHAD | ANNUAL REPORT 2023
KUALA LUMPUR INTERNATIONAL AIRPORT (KLIA) JAKARTA SOAKARNO-HATTTA INTERNATIONAL AIRPORT SINGAPORE CHANGI INTERNATIONAL AIRPORT BALIKPAPAN INTERNATIONAL AIRPORT 2 hours 35 minutes 3 hours 2 hours 10 minutes 2.5 Days SAMARINDA IKN NUSANTARA 1.5 Days TUAS PORT TANJUNG PRIOK PORT BALIKPAPAN PORT PENINSULAR MALAYSIA SARAWAK SABAH EAST KALIMATAN GREEN INDUSTRIAL PARK MANAGEMENT DISCUSSION AND ANALYSIS REPORT Easy accessibility to our plantation via direct flight from Kuala Lumpur, Singapore or Jakarta to Balikpapan International Airport in East Kalimantan, Indonesia Plantation (Cont’d) MKH BERHAD | ANNUAL REPORT 2023 33
PT.MKH JETTY PORT BONTANG BALIKPAPAN INTERNATIONAL AIRPORT PORT BALIKPAPAN SAMARINDA AIRPORT PT.MKH KAWASAN INTI IKN NEW CAPITAL NUSANTARA 50KM 100KM !"#$%&' PT.SPS Property Investment Our two eco-conscious shopping malls, Plaza Metro Kajang and Metro Point Complex have solar panel to harness sunlight to generate clean energy, contributing to sustainability. Metro Point Complex is showcased through its investment in EV charging station. This proactive step supports sustainable environmental objectives and reflect a forward-thinking approach to urban planning and environmental responsibility. This division is also expected to sustain an average occupancy rate of above 90% and maintaining an average rental yield approximately 3% to 4% for FYE2024 based on fair values of the properties as of 30 September 2023. MANAGEMENT DISCUSSION AND ANALYSIS REPORT EV charging station at Metro Point Complex Our Plantation (highlight in pink) is located in prime area within the vicinity of the new capital city of Indonesia in East Kalimantan Plantation (Cont’d) 34 MKH BERHAD | ANNUAL REPORT 2023
Artist’s impression of Nexus @ Taman Pertama which is approximately 150 metres walking distance to Taman Pertama MRT station
OIL PALM PLANTATION PLANTATION 32% Contribution To Total Group Revenue 32% Total Segment Profit Before Tax Contribution
The Group has 18,205 hectares (44,986 acres) of plantation land in East Kalimantan, about 75km from Kota Samarinda, Indonesia. ESTABLISHED IN 2008, THIS DIVISION IS ONE OF THE MAIN CONTRIBUTORS TO THE GROUP’S EARNINGS.
This report serves as a testament to the Group’s steadfast commitment to integrating sustainable practices across its diverse business portfolio. It has been prepared with reference to the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa”), detailing the Board’s assessment of crucial sustainability risks and opportunities collectively referred to as Material Sustainability matters. These factors influence the execution of the Group’s operations and our management decisions. The Board’s preparation of this report is guided by the sustainability reporting guide and associated toolkits published by Bursa. Framework and Guidelines - Our report incorporates Bursa Malaysia’s Main Market Listing Requirements (“MMLR”), aligning with other Malaysian and global frameworks. This includes referencing to the following five key frameworks: SUSTAINABILITY REPORT Bursa Malaysia Sustainability Reporting Guide (3rd Edition) Task Force on Climate-related Financial Disclosures (“TCFD”) framework Global Reporting Initiative (“GRI”) Standards United Nations Sustainable Development Goals (“UN SDGs”) This Sustainability Report (“Report”) narrates MKH’s sustainability efforts from 1st October 2022 to 30th September 2023, with future strategies and target moving forward. It offers insights into the Company’s holistic approach towards Economic, Environmental and Social (“EES”) aspects of our business operation in Malaysia and Indonesia, where our key businesses are located. The report provides an overview of MKH’s initiatives and accomplishments in promoting sustainable practices across these regions. Greenhouse Gas (“GHG”) Protocol 38 MKH BERHAD | ANNUAL REPORT 2023
SUSTAINABILITY REPORT Economic An organization’s impact on the economic conditions of its stakeholders and on economic systems at local, national and global levels. It does not focus on the financial condition of the organization. Note: These may include the organization’s procurement practices, or community investment. Environmental An organization’s impact on living and non-living natural systems, including land, air, water and ecosystems. Note: These may include the organization’s usage of energy and water, discharge of emissions, or loss of biodiversity, etc. Social The impact an organization has on the social systems within which it operates. Note: These may include the organization’s relationships with communities, employees, consumers, etc. By referencing to these frameworks, our report ensures a well-rounded approach to sustainability reporting. SUSTAINABILITY GOVERNANCE In MKH Berhad, we hold firmly to the principles of ethical conduct to ensure our business is conducted with integrity through good governance, in line with the best industry practices as well as the applicable rules and regulations. Our business operating units are guided by the Group’s policies and its respective standard operating procedures. The Board of Directors and the senior management meet regularly to ensure that the planning decision making and execution of the Group’s business operations are carried out professionally. We have an internal Audit Division to undertake an independent and systematic assessment of the Group’s system of risk management and internal controls as established by management in addressing the principal business risks faced by the Group. Full disclosure on our Corporate Governance Report is available for reference on www.mkhberhad.com MKH BERHAD | ANNUAL REPORT 2023 39
SUSTAINABILITY REPORT ORGANIZATIONAL STRUCTURE FOR SUSTAINABILITY COMMITTEE The planning and execution of sustainability strategies at MKH is overseen by the Group Managing Director, Tan Sri Datuk Chen Lok Loi, who plays a crucial role in leading the Sustainability Committee. This committee, under his guidance, ensures the effective implementation of sustainability matters across all our business operations. The committee identifies, evaluates, monitors and manages risks and opportunities in our business operations relating to Economic, Environmental and Social aspects. Through their diligent efforts, MKH strives to achieve a harmonious balance between business growth and sustainable practices. MKH Berhad’s Sustainability Committee comprises: • Group Managing Director • Key Senior Management Board of Directors of MKH • Review the Group’s sustainability matters and provide advice and direction on sustainability for the Group as and when necessary. • Approve sustainability report. Group Managing Director of MKH • Lead and drive the sustainability initiatives in the Group. • Discuss, review and monitor progress of sustainability matters regularly. • Report to the Board of Directors on sustainability matters. Sustainability Committee • Responsible for assessing and identifying sustainability matters. • Oversees the implementation of sustainabilityrelated strategies and initiatives. • Undertake actions as and when necessary to address sustainability concerns. Board of Directors of MKH Group Managing Director of MKH Sustainability Committee 40 MKH BERHAD | ANNUAL REPORT 2023
MKH’S SUSTAINABILITY GOALS MKH identifies and aligns its key topics and core principles by referencing to the United Nations’ 17 Sustainable Development Goals (“SDGs”), established in 2015 by the United Nations General Assembly. We share our responsibilities in supporting the efforts of tackling EES challenges through implementation of sustainable practices as follows: This commitment is demonstrated through the implementation of sustainable practices. SUSTAINABILITY REPORT • We regularly provide financial aid, household necessities and aid for medical treatment to the most vulnerable segments of society. • We collaborate with other bodies and NGOs to extend our reach and ensure help is targeted to those most in need. • We prioritize health and safety in our business operations by adopting good safety standards and safe working environment. • We promote healthy lifestyles by organising programmes that focus on our employees’ physical and mental well-being. • We conducted training session on basic first aid for our employees to emphasize the importance of first aid in our daily lives. • Our Plantation Division has a clinic that operates 24-hours a day with medical personnel on duty and essential medical equipment to address the medical needs of the community. • We provide financial aid to 185 students from 39 schools in Hulu Langat district through an education foundation. • We provide educational benefit for 60 students with the initiation of the MKH Pandai @ Schools Program, collaborate with Pandai Education. • Our Plantation Division in East Kalimantan, Indonesia provide a pre-school, a primary school and a junior secondary school (from Grade 7 to Grade 9) to provide education to the children of our estate workers. MKH BERHAD | ANNUAL REPORT 2023 41
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