Payments to providers of capital 2019 2020 2021 2022 143.2 92.0 21.0 44.3 Payments to government 2019 2020 2021 2022 55.5 33.9 31.4 51.3 2020 2021 2022 0.25 0.18 0.20 UEM Edgenta and its subsidiaries (RM million) UEM Edgenta and its subsidiaries (RM million) C. Economic value retained 2019 2020 2021 2022 113.1 15.4 103.3 75.0 By maintaining a wide-ranging portfolio and a strong global market presence, we are ideally positioned to navigate macroeconomic headwinds and spur resilient growth. To this end, supported by our multi-pronged EoTF25 strategy and a solid financial position, we will continue to take advantage of international expansion opportunities by offering quality tech-enabled solutions to new markets. EXTRACT VALUE FROM CORE BUSINESS In 2022, we continued to push ahead with our journey of optimisation to deliver sustainable economic value to our clients through cost and operational efficiency measures. To this end, the Group has rolled out a target of RM100 million in savings to be generated over 5 years and as of FY2022 (2nd year of implementation) approximately 50% of the target cumulative savings have already been achieved. These initiatives include efficiencies in procurement and payment processes, digitalisation and the introduction of new and high-tech mechanisation features in our day-to-day operations. By extracting value from our core businesses, we contribute to the economy through the connections we build from our business transactions and the returns on investments we generate for our ultimate holding company, Khazanah National Berhad. In addition, we also drive positive economic impact through our local recruitment efforts that span across all levels of employment including senior management positions, where such positions are made available. Through these efforts, we ensure that our employees are adequately remunerated with salaries, retirement benefits and other economic benefits, enabling them to contribute to the local economy through their spending, investment and tax payments. With this in mind, we consistently ensure that we adhere to the minimum wage legislation relevant to each country where we operate. In our commitment to be a fair-pay workplace, our minimum wage in Malaysia and Taiwan is above local requirements, whereas in Singapore, we comply with the Progressive Wage Model that is compulsory in the cleaning sector to help uplift lower-wage workers’ salaries. Awareness briefings are also provided to all suppliers to ensure that compliance with minimum wage levels forms a key constituent of their compensation framework. As another channel to distribute value, we contribute to employees’ retirement savings through two types of retirement plans: i) Defined Contribution Plan P ost-employment benefit plans under which the Group pays fixed contributions into separate entities or funds, as required by respective countries’ employment acts UEM Edgenta and its subsidiaries (RM million) 2022 2021 2020 69.9 76.4 78.0 ii) Defined Benefit Plan Voluntary contributions that are not mandated by the countries’ employment acts are made entirely by the employer when the employees become eligible to the pension scheme. This is currently exercised in Edgenta Mediserve Sdn. Bhd. and Edgenta UEMS Ltd. P ension liabilities are calculated based on the actuarial present value of the benefits payable to the employees when certain conditions are met F or Edgenta Mediserve Sdn Bhd, assets are not set aside by the Group to meet pension liabilities. Nonetheless, funding to meet these obligations is set aside on the year when these obligations arise. For Edgenta UEMS Ltd, the plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed by the government of Taiwan Defined Benefit Plan UEM Edgenta and its subsidiaries (RM in million) 2022 2021 2020 4,332 3,693 2,791 T he Group will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years P ension liabilities are calculated based on a contractual rate against employees’ salaries as stipulated in the employment contract B. Economic value distributed through: Operating costs, employee wages and benefits Community Investments Direct economic value generated less economic value distributed 2019 2020 2021 2022 2,110.3 1,894.4 2,143.6 2,357.9 UEM Edgenta and its subsidiaries (RM million) UEM Edgenta and its subsidiaries (RM million) UEM Edgenta and its subsidiaries (RM million) Defined Contribution Plan In our efforts to build industry resilience and deepen our solutions base, the Group reinforced its support to ensure sustainability in healthcare infrastructure by rolling out solutions that enhance the quality and availability of key healthcare infrastructure. In FY2022, the Group further extended its support by replacing aging equipment through its Replacement Through Maintenance (“RTM”) programme for high critical biomedical equipment (62 units of equipment provisioned since 2020), the provision of hybrid ICU units to complement the expanding needs of hospitals (15 units provided since 2020) and by driving environmental effectiveness in healthcare infrastructure through GBI and/or LEED certifications. More recently, the Group entered into a partnership with Weitmarscher Ambulanz (“WAS”), a leading manufacturer of ambulances, and First Ambulance Malaysia to pioneer the concept of “Ambulance-as-a-Service” and introduce electric (“EV”) ambulances to markets where we operate. p.122 p.123 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 SUSTAINABILITY STATEMENT SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH
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