Integrated Annual Report 2021

Maintained excellent health and safety culture 2021 has been a challenging year on the health and safety front, as the continuation of the COVID-19 pandemic led to new health threats as new Variants of Concern (VOC) emerged, changing SOPs, and the continuation of travel restrictions and border closures around the world. Due to additional requirements that arose from pandemic-related preventive measures, our costs have inevitably increased. Consequently, our seafarers also suffered anxiety from the continuation of the pandemic as the global maritime crew crisis persisted. In managing this challenging environment, Eaglestar implemented the following initiatives to ensure our crew safety as they continued to man vessels to safely transport cargo: • Developed and implemented strict SOPs and guidelines for COVID-19 crew change management • Obtained approval to introduce a “crewsafe” facilities in Malaysia • Implemented a focused seafarer vaccination drive resulting in 95% of our sea staff being fully vaccinated, as of 31 December, 2021 • Developed guidance on helping seafarers to deal with emotional stress and overcome negative feelings, as well as organised mental health wellbeing and mindfulness interventions for our staff • Minimised COVID-19 impacts on our crew through the following measures: – Working closely with internal and external stakeholders to reduce deviation and off-hire by planning efficient voyages, crew changes and shore maintenance – Conducts frequent interactions to boost crew morale and safety – Conducts COVID-19 crew relief engagement in collaboration with shipowners and authorities – Enhanced shore oversight for safety and efficiency In 2021, our excellent health and safety culture led to the Malaysian Society of Occupational Health and Safety (MSOSH) awarding us with the Gold Merit Award under the Logistics and Transportations Sectors. Signed Neptune Declaration In January 2021, Eaglestar along with MISC Berhad and AET, signed the Neptune Declaration on Seafarer Wellbeing and Crew Change. The Neptune Declaration is a worldwide call to action to end the unprecedented crew change crisis caused by COVID-19. The lengthy period of the pandemic, which has now crossed the two-year threshold, has led to hundreds of thousands of seafarers around the world left stranded working for long period onboard vessels, and in many cases beyond the expiry of their initial contracts, due to travel restrictions, quarantine requirements and border closures. This has led to pandemic fatigue amongst our seafarers, as prolonged periods at sea impacted their physical and mental wellbeing. The Neptune Declaration on Seafarer Wellbeing and Crew Change defines four main actions as listed below to facilitate crew changes and keep global supply chains functioning: • Recognise seafarers as key workers and give them priority access to COVID-19 vaccines • Establish and implement gold standard health protocols based on existing best practice • Increase collaboration between ship operators and charterers to facilitate crew changes • Ensure air connectivity between key maritime hubs for seafarers Contributing to the development of future talents in the maritime sector Eaglestar has maintained our commitment to building a sustainable talent of maritime workers for the future, through our collaboration with Akademi Laut Malaysia (ALAM) in the cadet sponsorship programme. The programme fosters youth development and builds their capabilities to find jobs in the future maritime sector. As at end 2021, we have sponsored a total of 764 cadets. Diligently executed contracts We have diligently executed the newbuilding supervision contracts in our books, in line with ensuring project excellence. Our ongoing newbuilding projects include Dynamic Positioning Shuttle Tanker (DPST), dual-fuel Very Large Crude Carriers (VLCC), and LNG Carrier (LNGC). Focused and dedicated team In 2021, our people’s commitment to pursuing excellence through their hard work and dedication received appreciation within the PETRONAS Group of Companies when the Eaglestar team obtained a Focused Recognition award. This applaudable achievement acknowledges Eaglestar demonstrating relentless efforts in facilitating crew changeovers throughout the pandemic. Additionally, Pinak Dandapat, a Third Officer from Eaglestar, won the 2021 Future Maritime Leaders essay competition organised by the Global Maritime Forum (GMF). Strengthened our governance In 2021, the MISC Group joined the Maritime Anti-Corruption Network (MACN). As part of the MISC Group, Eaglestar fully supports the MACN signalling our commitment to combat corruption in the maritime sector. The MACN is a global business network comprising over 165 members that was established in 2011 with the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. By joining this global collaboration, Eaglestar will be able to contribute to the development of a sustainable maritime industry that is free of corruption. It also enabled us to draw from MACN’s support for industry maturation in anti-corruption compliance through capability building. In the longer term, this will lead to a more robust governance culture at Eaglestar. INTEGRATED MARINE SERVICES BUSINESS REVIEW Obtained Focused Recognition Award from PETRONAS Group of Companies Eaglestar employee won the 2021 Future Maritime Leaders essay competition organised by the GMF Sponsored 764 cadets as at end 2021 through the cadet sponsorship programme at ALAM Became a signatory of the Neptune Declaration to demonstrate our commitment to seafarer wellbeing Joined the MACN to demonstrate our commitment to combat corruption Won Gold Merit Award under the Logistics and Transportations Sectors at MSOSH 2021 Comprehensive programmes to minimise COVID-19 impacts on our crew Ongoing Projects in 2021 6 DPSTs 5 dual-fuel VLCCs 2 LNGCs MISC Berhad 156 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 157