Sustainability Statement  6

SUSTAINABILITY
STATEMENT

🔊

OUR
PEOPLE

SAMEE recognises that our employees are the most important and valuable resource and as such, we continue our ongoing investment in our human capital.
We prioritise the health and safety of our employees through implemented policies and procedures. This commitment creates a positive work environment, attracting and retaining high-quality talent, thereby contributing to the company’s overall success. SAMEE upholds a strong stance against unjust discrimination, prioritising human rights in our business approach. We actively prevent sexual harassment, child labour and forced labour. Our measures, including the Code of Ethical Conduct and Conflicts of Interest, address discrimination and harassment, ensuring employees’ protection.
Building strong relationships with stakeholders is fundamental for SAMEE’s sustainable growth and long-term value creation. We emphasise establishing a strong and enriching community to achieve these goals.

ETHICS & COMPLIANCE

With the globalisation of the economy, regulations and variations in governmental and economic frameworks, it is crucial to establish a culture based on ethics and integrity. Our corporate governance system ensures sound risk management and strong internal controls. Our Corporate Governance Overview Statement can be found in our Annual Report.
In FY2023, SAMEE made revisions and updates to its Enterprise Risk Management Framework in accordance with the principles and guidelines outlined under the Committee of Sponsoring Organisation of the Treadway Commission’s Enterprise Risk Management – Integrating with Strategy and Performance 2017 and is embedded in the Group’s management systems.
SAMEE introduced an updated risk management framework to address material ESG concerns, regulatory compliance and strategic goals. This framework aligns with enhanced corporate governance guidelines of the Malaysian Code of Corporate Governance, released in April 2021 by the Securities Commission of Malaysia.
The Board delegates the review of the risk management framework and dashboards, including significant risks and action plans, to the Risk and Sustainability Committee (“RSC”). The Chief Risk Officer and management staff, along with the risk management section of business unit heads, support the RSC’s operations. SAMEE upholds ethical and honest business conduct through enforced internal control policies. These policies are accessible on the Group’s website.
SAMEE’s corporate governance framework includes a Code on Business Conduct and Ethics (“Code”), an anti-bribery and corruption policy and a whistleblowing policy. We expect employees to demonstrate integrity when interacting with stakeholders and violating the Code is unacceptable. Reporting incidents of wrongdoing or non-compliance is encouraged.
To provide more detail, our Code includes policies related to Business Ethics, Standards of Conduct and Conflicts of Interest. The Code covers the following topics:
Figure 10: Our Code on Business Conduct and Ethics (“Code”)

All SAMEE employees are bound to adhere to the implemented Code, which establishes behavioural principles and responsibilities within and outside the Company. These principles are communicated and emphasised during training sessions. Employees commit to ethical business conduct and compliance through signed SAM Employee Agreement.
Figure 11: Our Core Values

Anti-Bribery & Corruption Policy

SAMEE Group strictly prohibits bribery and corruption, with severe consequences for violators. Suppliers are annually reminded of our zero-tolerance stance and are expected to comply. We encourage suppliers to report conflicts of interest. Employees receive annual policy reminders and those in sensitive positions must confidentially disclose their debt position.
Public Listed Companies (“PLCs”) on Bursa are required to establish policies and procedures to combat corruption and promote whistleblowing under the Anti-Corruption Amendments. This measure defends PLCs against corporate liability for corruption. The policies and procedures must be reviewed periodically by the Board of Directors, with a minimum frequency of once every three years, to assess their effectiveness. The amendments also mandate that PLCs include corruption risks in annual risk assessments, including those of affiliated companies.
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LABOUR PRACTICES
& RIGHTS

EMPLOYEE LEARNING
& DEVELOPMENT

EMPLOYEE WELL-BEING,
HEALTH & SAFETY

ATTRACTING, DEVELOPING,
REWARDING & RETAINING
EMPLOYEES

x

The management philosophy at SAMEE has long been centred around the principles of “No Bribery, Zero Corruption” in all aspects of the company’s operations, predating the implementation of Section 17A of the MACC Act 2009. Our policies outline our ethical approach to conducting business daily. Our Anti-Bribery and Corruption Policy can be publicly accessed on our website at http://www.sam-malaysia.com.
All our directors have participated in training session on anticorruption measures and will continue to keep themselves abreast of anti-bribery and anti-corruption policies and knowledge. SAMEE has communicated its anti-corruption policies and procedures to all 1,972 staff members across three countries, ensuring complete coverage. Additionally, a significant portion, comprising 48% of the total workforce, has also received comprehensive anti-corruption training. In our effort to improve communication and training on anti-corruption policies and procedures, SAMEE has developed more training methods e.g., e-learning to keep the training more reachable and convenient to our employees.
All 127 business partners from Singapore have been made aware of and attended training for SAMEE’s anti-corruption policies and procedures. SAMEE will provide regular updates on changes to the anti-corruption policy, new risks and best practices to our business partners, which can be done through email or newsletter. During the period for FY2023, there were no incidents of corruption reported or identified within SAMEE. This reflects our commitment to maintaining high standards of ethical conduct and integrity in our operations.
To enhance awareness among our employees, we engaged an external consultant to conduct a workshop focused on Section 17A of the MACC Act 2009. Additionally, we arranged two special briefing sessions for our Managers and Section Heads, which were led by representatives from the MACC, to provide insights on the implications of the updated law for companies, as well as to raise general awareness about anti-bribery and corruption (“ABC”) initiatives. We ensured that all decision-makers and managers in Malaysia completed an online ABC learning programme in FY2023.

Whistle Blowing Policy

The Whistleblower Protection Act 2010 is the basis for SAMEE’s Whistle Blowing Policy (“WBP”). Our WBP provides employees and external parties with the assurance that they have access to an effective reporting channel in the event of any breaches of our Code of Conduct, ethical misconduct, or omissions by a SAMEE employee.
Our WBP is available for review on our website at http://www.sam-malaysia.com. Whistleblowers can send their report to independent@sam-malaysia.com, and the complaint will be directed to the Chairman of the Audit Committee for appropriate handling based on the severity of the complaint. We would like to confirm that no complaints were received during the reporting period.

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Commitment to Labour Rights

SAMEE places great emphasis on creating an inclusive and diverse work environment that prioritises the protection of our staff’s labour rights. To achieve this goal, our Code of Conduct and labour policies are designed to adhere to local employment regulations such as the Malaysian Employment Act 1955, as well as aiming to be in alignment with industry standards like the RBA. Our labour rights framework includes:

Figure 12: Labour Rights Upheld at SAMEE

SAMEE received zero complaint on labour rights during FY2023.

Grievances Mechanism

It is essential for employees to have a platform to express their dissatisfaction or grievances in order to address and tackle the problems before they can escalate and harm employee morale. We have established a policy and process for any employee to raise any grievances, dissatisfaction, or even a violation of our Code of Conduct. Every possible effort shall be made to settle any grievance or complaint from the employees at the lowest possible level and as expeditiously as possible. The substance of the grievance will be treated in strict confidence.
Expatriate or Migrant Worker Management
SAMEE maintains a policy of treating all employees equally, regardless of their gender or nationality. For instance, our non- Malaysian employees in Malaysia are not hired on a fixed-term contract but are considered “permanent” employees on our payroll, which entitles them to the same benefits and terms as our Malaysian employees. They are provided with their bank account in Malaysia, into which we transfer their wages directly and they retain possession of their passport.
Independent Verification
SAMEE follows the standard procedure of having our operations evaluated by third-party audits on an ad-hoc basis. The audits are performed by our customers, regulators and independent auditors to assess how well our systems can handle potential ESG issues, such as labour and human rights, in compliance with applicable laws and regulations and established best practices. In FY2023, we continued to follow this philosophy and practice and no significant issues were identified during the audits.

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At SAMEE, we uphold the critical role of employees’ learning and development plays in achieving our business objectives and our broader commitment to sustainable development. Over the years, we placed great emphasis on developing and equipping our employees with the necessary skill sets in line with the UN SDG 4: Quality Education.
SAMEE Human Resource Department participates in career talks held during SAMEE’s Career Day and career fairs hosted by PERKESO and education institutions. Our HR representatives share information about SAMEE’s culture, values and mission and highlight the various career paths available within SAMEE.
In FY2023, SAMEE achieved our internal target of 25 hours per employee. SAMEE will plan to identify training needs for management roles tailored to the manager’s needs to focus on improved performance and better business outcomes. We look forward to creating a fair and transparent training selection process and conducting regular assessments to ensure equality.
SAMEE is committed to investing in their employees across all levels. They recognise that this investment is essential to keeping employees up to date with the ever-changing business landscape and enabling them to drive innovation to meet customers’ needs. To achieve this, SAMEE adheres to its Training Policy.

  • 41.40

    69.92

    Malaysia

  • 45.35

    110.02

    Singapore

  • 99.00

    185.00

    Thailand
Figure 13: Average training hours per employee category
Maintaining a Skilled Workforce
SAMEE conducts an annual Training Needs Analysis to identify knowledge and skill gaps among employees, considering industry changes, regulations, employee expectations and technological advancements. We strongly emphasise practical experience through our prioritisation of “On-the-Job Training” (“OJT”). To ensure comprehensive training, we rely on the expertise of both internal professionals and external trainers who provide guidance on the latest techniques, machinery and systems used within our organisation. We provide annual Quality Improvement training to ensure high standards. Soft skills training and team building activities foster team spirit and update employees on leadership, management, stress and people management. In FY2023, we conducted more than 120 training programmes in finance, HR, IT, quality, EHS, soft and technical skills, including tailored OJT for different employee categories.

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SAMEE is dedicated to ensuring the safety and well-being of all our staff members in the workplace. We take great care in managing and reducing the risks involved in dangerous activities and processes, which could cause injuries related to fires, explosions, or toxic materials.
We focus on preventing incidents and have implemented a strong safety management system. We strictly adhere to our Occupational Safety and Health (“OSH”) Policy, which governs our operations and employees at all levels. Additionally, we review this policy on an annual basis.

Dedicated Safety Governance

The EHS Committee within our organisation is responsible for directing and advising all employees on matters related to health and safety. Each location has its committee of qualified individuals who collaborate closely with the overarching Group EHS Committee. Along with aiding in creating and evaluating health and safety systems and programmes, the EHS Committee has several significant duties and obligations, some of which are outlined below.
Responsibility of EHS Committee

Carry out studies on accident
trends, incidents and diseases

Meet bi-monthly to review
regulatory and license compliance
monitoring programmes

Safety officers advise
and monitor the Group’s
compliance with relevant laws and
regulations, and review and update
safety & health policies

Perform advisory measures on safety
& health measures on ergonomic
issues such as lifting aid for manual
handling tasks

Provide medical surveillance for
occupational health monitoring (e.g.,
lead monitoring, acid and organic
solvent monitoring)

Assigned medical services in the
vicinity (e.g., 24-hour clinic, specialist
centre & district government hospital)

Apart from the legal and regulatory requirements to comply with the OHS, SAMEE puts the safety of our employees and workers first. Having an efficient OHS system in place helps to reduce the risk of workplace accidents and illness, which can lead to cost savings and improved productivity.
In terms of actions taken or underway to eliminate other work-related hazards and minimise the risk of a work-related injury, SAMEE does this by engineering control by installing safety devices such as safety light curtains, enclosing the hazards and installing machine guarding. Other than that, continuous provision of safety and health-related information, instruction, training and supervision are in place to ensure safety and health at the workplace.
In FY2023, SAMEE achieved an exemplary safety record with no reported fatalities. However, we did encounter a total of five cases of work-related ill health during this period. The primary health concerns identified were overexposure to aluminium dust and hearing impairment. The root causes of the work ill health incidents were thoroughly investigated within our company. To address the issue, following control measures such as engineering controls to isolate workers from the hazard, administrative controls to include SOPs and procedures to reduce exposure to aluminium dust and noisy task are planned to be implemented. In conclusion, the work-related ill health incidents SAMEE have been investigated and control measures have been implemented to prevent future occurrences. By continuing to monitor and address potential health hazards, SAMEE is committed to ensuring the health and safety of its employees.

Instilling Safety Culture

We hold the belief that every employee bears responsibility for fostering a workplace culture that prioritises safety in order to achieve our goal of “Zero Accident & Zero Compound.” New hires are given an overview of our safety policies and culture and this same approach is extended to our contractors during their annual EHS awareness training.
We have also created an emergency response team (“ERT”) that is responsible for preparing for and managing any emergencies that may occur on-site. These team members undergo mandatory training to attain competency certification, which equips them to handle any incidents that may arise. In addition to this training, we provide them with information on how to report accidents and medical incidents, which complements their overall preparedness. All employees working for SAMEE are provided with coverage under the Environmental Health and Safety (“EHS”) programme, ensuring that each individual is fully protected and supported by this comprehensive initiative.
Table 9: List of Safety Training Conducted in FY2023
No.
Safety Training Programme
1.
Fire Fighting and Prevention Awareness
2.
First Aid and CPR
3.
Overhead Crane
4.
Hearing Conservation Training
5.
Forklift Safety & Maintenance
6.
Occupational Safety & Health Administration (“OSHA”)
7.
OSH Coordinator Trained Person Programme
8.
Professional in Scheduled Waste Management
9.
Fire Prevention Awareness Programme

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Diversity and Inclusion
SAMEE recognises the significant role that diversity and inclusion plays in promoting a fair and equitable workplace environment. SAMEE’s policy is aligned with the UN SDG Goal 8: Decent Work and Economic Growth, which aims to achieve higher levels of economic productivity through diversification.
Our Board of Directors
To recognise the importance of women in decision-making and enhance board governance and effectiveness, it is crucial to have a diverse Board of Directors in the company.

Board of Directors
(by gender)

Figure 14: Summary of Board of Directors by gender

SAMEE’s operations are overseen by a Board of Directors consisting of seven (7) members, of which three (3) are Malaysian and the remaining four (4) are Singaporean. At SAMEE, we are committed to promoting greater diversity in all aspects of the business as we recognise the importance of having a diverse range of perspectives and experiences at the highest level of our organisation.
Our Employees
At our company, we firmly believe that our success is a direct result of the hard work and dedication of our employees. We appreciate the value of human capital and recognise that all 1,972 employees are our most important asset. In line with this value, we have revised our Employment Policy to be integrated into our working structure. Under the Employment Policy, we also have several related clauses, which include No Forced Labour, No Child Labour, Non-Discrimination, Anti-Sexual Harassment, Equal Opportunity and Freedom of Association to ensure a workplace that is safe, ethical and inclusive for all employees and stakeholders.

Management Level Employee Data by
Gender

  • 72%

    Male

  • 28%

    Female

Management Level Employee Data by
Age Group

  • 1%

    Under 30
    years old

  • 80%

    30-50
    years old

  • 19%

    Over 50
    years old
Figure 15: Management Level Employee Data by Age, Gender and Regions3

Non-management Level Employee Data by Gender

  • 82%

    Male

  • 18%

    Female

Non-management Level Employee Data by Age Group

  • 57%

    Under 30
    years old

  • 37%

    30-50
    years old

  • 6%

    Over 50
    years old
Figure 16: Non-management Level Employee Data by Age, Gender and Regions
3 Employee data in this Sustainability Statement are as of 31st March 2023.

Employee Turnover

Our voluntary turnover rate showed improvement from 38% in FY2022 to 33% in FY2023. The planned lifting of migrant worker restrictions and our efforts to restructure our compensation and benefits to make them more attractive and aligned to market practices should provide some respite from these market forces moving forward.

Figure 17: Employee Turnover by Gender and Age Groups

To retain the best talent, regardless of gender, SAMEE is committed to including career advancement opportunities, creating a more inclusive and supportive workplace culture and providing flexible work arrangements and benefits that support the work-life balance of our employees.
We offer a variety of plans and programmes as part of our employee benefits package designed to attract, retain and motivate our top-performing employees, who are essential to our growth and achievements. Our actions are governed by our Human Resource Policies and the regulations of the countries where we operate.
To ensure their well-being, we provide a comprehensive insurance and medical benefits package encompassing outpatient coverage, dental care and health screening benefits. In addition to the insurance and medical benefits, our Sports and Recreation Committee actively organises various activities focused on promoting health and wellness among our employees. Recognising the hard work and dedication of our employees, we also prioritise remuneration and rewards. We believe in acknowledging and appreciating their contributions by offering competitive compensation packages.
Regular performance and career development reviews are essential for the growth and success of both employees and the company. In an effort to emphasise the personal and professional growth of our employees regardless of gender, SAMEE will provide regular feedback, coaching and support needed to improve employee’s job performance, especially the female personnel and to advance their careers, which will lead to higher morale and increased job satisfaction.

CSO Statement

In conclusion, this sustainability report highlights our unwavering commitment to sustainable practices and ethical business conduct. We have made significant progress in reducing our environmental impacts, promoting social equity and fostering a culture of innovation and transparency. However, we recognise that our journey towards a more sustainable future is far from over. We remain steadfast in our dedication to continuously improve our sustainability efforts, engage our stakeholders and collaborate with partners to drive positive change. Together, we can create a more resilient and sustainable world for future generations.