Integrated Annual Report 2021

Awarded the MSOSH Occupational Safety and Health “Gold Merit” Award • Zero LTI since 1999 • Zero TRCF for 2 consecutive years (2020 - 2021) Throughout 2021, MMS continued to provide Port Management & Maritime Services successfully to our clients, as we implemented robust business continuity plans to effectively manage challenges brought on by the continuing COVID-19 pandemic. Incorporating lessons learnt when the pandemic first broke out in 2020, we have shifted in the way we perform our operations to adapt to the new norms of the post-COVID-19 world. In addition to adhering to Standard Operating Procedures (SOP) issued by the government, we have developed our own additional safety guidelines to safeguard our workforce, vendors, suppliers and clients. Our uncompromising approach to health and safety has been instrumental in ensuring that our people remained protected while still being able to fulfil our commitment to our clients. As we all know, the pandemic has affected many industries around the world including the oil and gas sector which we support. We have seen better days in 2021, compared to the previous year, with oil prices recovering from USD50 per barrel to over USD80 per barrel. Oil demand also correspondingly recovered as lockdowns gradually eased, which allowed the resumption of economic activities. Underpinning it was Malaysia’s successful vaccination programme which contributed to the recovery of economic activities. This in turn translated to more demand for our services in comparison to the year before. Having said that, industry demand is taking time to recover to pre-pandemic levels and this remained a challenge for us in 2021. HAZRIN HASAN Managing Director & CEO, MISC Maritime Services Sdn. Bhd. (MMS) To counteract this, we looked inward to adopt various cost saving measures to ensure our business sustainability. We renegotiated charter hire for our tugboats at a lower rate and we took efforts to minimise our bunker consumption through effective monitoring and proper handling of our tugboats during our operations. Business travel expenses reduced as our people utilised online platforms to conduct meetings. In essence, we made the most of cost management opportunities we had identified that allowed us to remain cost effective as we continued providing our services during the year. A key area of focus was enhancing the capability and capacity of our workforce. We view the need to equip our marine professionals with multiple skillsets as a primary step towards pursuing our future growth agenda. Our belief is that we need to grow both our organisational and people capabilities in line with our ambition to become the industry leading experts that our clients can trust. Retaining our focus on growing our business and propelling ourselves to greater heights, we have been exploring opportunities to expand into new markets, while concurrently looking at new client acquisition. Towards that end, and leveraging on our experience, we have identified the LNG market as one we can tap into. Digitalisation has been at the forefront of our organisational enhancement as a tool for us to achieve operational excellence and further improve our efficiency. In early 2021, we embarked on the development of a digital platform for port and terminal operations, which we had successfully implemented by the end of the year. This new platform is a game changer for MMS, as it eliminates the need for manual documentation, thus improving our efficiency in delivering services at our ports and terminals at any given time. Our assurance team has embarked on plans to develop a one-stop assurance system that will further simplify our assurance processes and enhance our effectiveness and efficiency in delivering our services. I am particularly excited to share on the efforts we have made to enhance our port engineering maintenance team. We have progressed on track to achieve our aspiration to establish a Centre of Excellence (COE) that focuses on port engineering maintenance services for the industry. The establishment of the COE will enable us to optimally position ourselves in the industry and boost our competitiveness. With the aim of strengthening our business value proposition, we conducted a recruitment drive for key personnel, sourced for new equipment, and established our own maintenance facilities. Moving into 2022, we are cautiously optimistic of global economic recovery. Driven by national vaccination and booster programmes, the expectations are that the global community is coming to terms with the pandemic and is slowly but surely finding a sustainable way to live and work with COVID-19. Our future strategy is to focus on capability and capacity enhancement, business growth and accelerate the adoption of digital technologies into our operations. We view our people as our main capital that drives our successful operations and will continue to pursue our agenda to strengthen our workforce skills and capabilities to remain competitive. In the long run, we envision MMS as an organisation driven by well-trained and highly qualified marine professionals who serve a broad base of clients in the industry. We plan to expand our service offerings to more clients, as we implement focused plans to penetrate new markets, as well as to expand our services to neighbouring countries in the ASEAN region. Digitalisation continues to be an important means by which we will increase operational efficiency in the years to come, which will give us an edge over our competitors. With a well-equipped team driving our growth ambitions, I am confident that we will be able to see through our growth agenda and secure a wider scope of jobs within the next five years. HAZRIN HASAN Managing Director & CEO, MISC Maritime Services Sdn. Bhd. (MMS) Hazrin Hassan was the Managing Director & CEO, MISC Maritime Services Sdn. Bhd. until 31 December 2021. He is currently the Vice President, Gas Assets & Solutions MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER’S REMARKS KEY DEVELOPMENTS PORT MANAGEMENT & MARITIME SERVICES BUSINESS REVIEW Maintained excellent HSE culture Venturing into supporting the LNG market Taken steps to acquire SPMs Exploring opportunities to reduce costs and increase efficiency by owning our own tugboats Identified new areas of business growth As the marine sector turns more towards LNG-fuelled vessels as an eco-friendly alternative to oil-fuelled vessels that will transition the sector towards industry decarbonisation by 2050, MMS has decided that this is an area which presents us with opportunities we can tap into. We have identified the LNG market as a new market that we can support through the provision of services such as shipto-ship (STS), LNG bunkering and LNG breakbulk. We are We have continued to uphold safety as our topmost priority, and have consistently achieved zero Loss Time Injury (LTI) in our operations since 1999. This is testament of our capability in operating our services in a safe manner and has reinforced our relationships of trust with our clients. In 2021, MMS through SUPSB was awarded the Malaysian Society for Occupational Safety and Health (MSOSH) Occupational Safety and Health (OSH) “Gold Merit” award for our excellent occupational safety and health performance at Sungai Udang Port. The award reflects our commitment to uphold the highest standards of safety in our port operations. MISC Berhad 162 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 163