Integrated Annual Report 2021

Collaborating with UMT’s SEATRU on the Sea Turtle Conservation Programme Expanded service offerings at Sungai Udang Port We have been able to make the most of cost saving opportunities to run leaner business operations in 2021. We were able to minimise our bunker consumption through effective monitoring and proper handling of the tugboats during our operations. We also renegotiated charter hire of our in-chartered tugboats at a lower rate and saved on business travelling expenses through the utilisation of online meeting platforms. New recruitments to drive growth agenda In line with our business expansion plans, we have identified our human resource strategy to enhance and multi-skill our marine professionals in line with our growth agenda. We have continued to hire new talents, in line with our plan to enhance the capabilities of our marine professionals and improve our capacity in offering services to potential clients. As at the end of 2021, we have conducted restructuring activities, with several roles having been identified for us to fortify our position as the marine services provider of choice. This includes upskilling and hiring people for Person in Overall Advisory Control (POAC), Port Engineering Maintenance (PEM) and marine consultancy work. Thus far we have successfully filled the position of Head of SPM Maintenance and Head of Port Engineering Maintenance. Manpower contracts were also successfully awarded to qualified vendors. The actions we have taken in 2021 put us one step closer to having our own maintenance facilities in Terengganu and Melaka. Demonstrated cost excellence in 2021 Launched Smart Port digital platform Expanded our service offerings Accelerating the adoption of digitalisation In June 2021, we expanded our offerings at Sungai Udang Port by adding a spectrum of ancillary services to potential clients effective June 2021. These include marine fuel/LNG bunkering services de-slopping, freshwater supply, crew change, provision & stores supplies, and garbage removal. In 2021, we embarked on the effort to develop a digital platform for port and terminal operations use, which was successfully implemented at the end of the year. The new Smart Port digital platform eliminates the need to process paperwork manually, which has increased our efficiency while increasing capacity to deliver services at our ports and terminals. Our assurance team has a specific initiative in the pipeline to develop a onestop assurance system that will further simplify our assurance processes, and enhance our effectiveness and efficiency in delivering our services. PORT MANAGEMENT & MARITIME SERVICES BUSINESS REVIEW Contributing to biodiversity conservation through the Sea Turtle Conservation Programme MOVING FORWARD With the gradual recovery of oil prices in 2021, and the majority of the population in Malaysia having been fully vaccinated, economic activities have started to resume. Continual improvements throughout 2022 will contribute to economic growth as businesses ramp up their activities in line with easing restrictions. With oil demand set to further recover, we expect MMS operations to return to close to pre-COVID-19 levels in the year ahead. At the same time, we are mindful of the need to be cautious, and to employ a prudent approach in our operations management. Standard operating procedures and social distancing still need to be followed to the letter as lockdowns and travel restrictions may be re-imposed should another wave of infections hit. Further waves of global infections could also result in a volatile oil price and weak oil demand which may potentially adversely affect demand for our services. Nevertheless, our focus for the year ahead is to enhance the capability and capacity of our manpower, by upskilling our marine professionals to cater to niche markets which will present us with growth opportunities. We are keenly focused on ensuring our sustainable long term business growth by tapping into new growth areas. This will see us pursuing new business models that deliver long term sustainability. Among them is the LNG market, where we can provide services within our own capability and capacity which include LNG bunkering, LNG break-bulking and LNG consultancy services. At the same time, we will sustain the income from our core businesses through operational excellence. We plan to develop new business within PETRONAS while at the same time exploring opportunities with external clients as we continue to expand our regional and international footprint. In 2022, we plan to further accelerate our digitalisation efforts towards increasing the efficiency of our port and terminal operation as well as our maritime services. Leveraging on digitalisation, we will improve key processes to achieve cost optimisation and service efficiency. implementing strategies to drive our venture into this space and have recruited new talents with the expertise and skills in this area. In terms of asset expansion, acquiring Single Point Moorings (SPMs) that we are operating in the country is one of our long-term goals. In 2021, we have taken initial steps towards materialising our aspiration towards becoming the single operator for SPMs which covers operation and maintenance of the assets. We are also exploring opportunities related to owning our own tugboats to support our port and terminal operations. Owning tugboats would minimise the risk of relying on thirdparty providers for the provision of tugboats in assisting our operations. In addition, reducing dependencies on thirdparty providers would optimise our operation costs in the longer term. Focused on cost excellence Capability and capacity enhancement In 2021, MMS and the Sea Turtle Research Unit (SEATRU) of Universiti Malaysia Terengganu (UMT) continued to work together to sustainably manage the sea turtles in Chagar Hutang on Pulau Redang as part of the Group’s Biodiversity Conservation sustainability strategic priority. MMS has committed RM300,000 towards this programme over a five-year period spanning 2020 until 2024. MISC Berhad 164 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 165