sustainability statement 4

SUSTAINABILITY
STATEMENT

🔊

OUR BUSINESS
PERFORMANCE

SAMEE is a Malaysian-based global technology company that delivers high-quality products and services that exceed customer expectations at competitive prices. We are committed to aligning with sustainable development goals and driving technological advancement across divisions. In addition, we prioritise supporting local communities, employing locals and sourcing from reliable suppliers. Understanding evolving customer needs is crucial to our success and we strive to maintain a robust supply chain for sustainable growth.

PRODUCT &
SERVICE QUALITY

SAMEE prioritises product and service relevance, sustainability in manufacturing and quality control to meet customers’ specifications and international standards. SAMEE ensures the highest product quality by empowering process owners for quality control and leveraging advanced technology for enhanced operational efficiency throughout product and service development.
All our operations revolve around the framework prescribed by our Quality Policy and Manual. During FY2023, we revised our policy to include Human Factors, emphasising the importance of an open reporting culture. We also prioritise continuous improvement efforts to enhance employee well-being, productivity and overall organisational performance, ultimately upholding the highest standards of product safety.
Our employees are mandated to embrace this quality culture at SAMEE that drives high standards of work ethics, integrity and quality performance. SAMEE has implemented an initiative called the Quality Incentive Scheme to further cultivate a strong quality culture. This programme is designed to reward direct employees who are committed to quality and meet training requirements. The scheme operates quarterly, with payouts granted when targets for quality performance and compliance with training requirements are achieved. This initiative aims to incentivise and recognise employees for their contributions to maintaining high-quality standards within the organisation. SAMEE fosters a “Quality Is Everyone’s Responsibility” mindset through a top-down approach. This includes a Quality Campaign led by top management and a Quality Module integrated into New Hire Orientation to instil this commitment.
To maintain high-quality standards and prevent quality issues, SAMEE conducts rigorous risk and impact analysis using the Process Failure Mode Effect Analysis methodology. We evaluate potential process failures and risks, developing strategies to mitigate their impact on the product. Below are some other measures to maintain product quality at our operations.
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TECHNOLOGY, INNOVATION & DEVELOPMENT

SAMEE strives to lead in innovation and technology, driving efficiency and delivering value through Project ARK (Automation, Reduction, Knowledge). This hallmark initiative enhances automation, reduces waste and safeguards manufacturing knowledge.
We undertake strategic projects to maintain a competitive edge, leveraging computer simulation software to optimise production parameters and increasing automation to reduce labour dependency. Coordinated measuring equipment and wireless inspection gauges are networked in our facilities to conduct constant statistical analysis on captured inspection data that will allow us to maintain and improve our product quality. Dashboards are displayed at our workplaces to provide real-time feedback on our production. SAMEE continues to invest in relevant innovation and technology in its operations to enhance operational efficiency.
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ECONOMIC
PERFORMANCE

SAMEE achieved a record revenue of RM1,445 million in FY2023, an increase of 26% from the previous financial year. For more information on the economic performance, please refer to the Management Discussion & Analysis section in the Company’s Annual Report.

CUSTOMER
SATISFACTION

We strive to achieve long-term growth through customer relationships and satisfaction from existing customers while expanding our new customer base. Our Quality Policy played an important role in guiding us and enabling us to gain the trust and confidence of our customers, who demand a very high-quality standard as they operate in critical industries.
We assigned dedicated programme leaders to both existing and new customers, serving as a central point of contact for product or programme issues. Additionally, we offer on-site support to foster stronger relationships and actively contribute to customer product development. We actively participate in improvement programmes, on-site reviews and production reviews to reduce turnaround time and address issues effectively. To ensure customer satisfaction, we actively seek feedback through annual surveys and review scorecards from key customers. We use this input to strengthen areas of praise, address areas of concern and act upon constructive suggestions. Scorecards help us measure performance across quality, lead time, responsiveness, cost competitiveness and after-sales support.
We engage strategically with our customers through Quarterly Business Reviews (“QBR”) involving senior management. These reviews help us assess performance, understand evolving needs and identify future requirements. By analysing strengths, weaknesses, opportunities and risks, we aim to improve customer service and position ourselves as their preferred supplier for future growth.
During FY2023, we continue to receive excellent ratings in our customer satisfaction.

CYBERSECURITY
& IT MANAGEMENT

In our continuous effort of digitisation and utilising cyber technology, SAMEE always remain cautious and vigilant to the growing potential cybersecurity risks that are ever present, especially as our customers are mainly multinational corporations (“MNCs”) and key players in their respective industries.

SUPPLY CHAIN
MANAGEMENT

Supplier partnerships are vital to SAMEE’s business success and we recognise supply chain disruptions as a significant risk. We prioritise sustainable and responsible supply chain management to ensure stable sourcing, cost competitiveness and efficient delivery of quality products and services. Strengthening the supply chain is essential for business continuity planning and aligns with UN SDG 12: Responsible Consumption and Production.
We also extended the risk mitigation plan of our supply chain management for critical materials to multiple sources to minimise the impact on our supply chain. All our key materials suppliers and contractors are also required and have agreed to supply parts adhering to our standards by issuing and signing a Letter of Conformance for the parts they built for us.
SAMEE’s suppliers are guided by the following procedures and documents:
  • Quality Procedure
  • Purchasing Policy
  • New Vendor Selection and Registration
  • Vendor Performance Review
  • Approval Authorisation Policy
  • Quality Surveillance
  • Environment, Health & Safety – Chemical and Hazardous Materials
  • Anti-bribery and corruption policy
We are in compliance with our customers’ requirement and to ensure their utmost satisfaction, we have taken measures to ensure that our products are RoHS compliance and Conflict Mineral Compliance. In FY2023, SAMEE completed the submission of the Supplier Compliance Letter to our suppliers and added the policies into our system.
Supplier Screening
Supplier Engagement
Local Suppliers

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Supplier Screening
SAMEE assesses the quality of our supplier’s products and the availability of ISO management systems and certifications. To date, 100% of our material suppliers declare sourcing from conflict-free nations. Basically, we take priority in encouraging our suppliers in managing and minimising any actual or potential risks of non-compliance, environmental, or social issues, such as labour rights and standards, issues related to environmental management and issues pertaining to business ethics and integrity.
The Procurement Department of SAMEE plays a critical role in displaying the strict integrity and ethics of the whole Group. Prior to the appointment of a supplier, our Procurement Department will ensure that the supplier agrees to our terms and conditions, including our Code of Conduct, governing laws stipulated in our Purchase Order (“PO”) forms and to our material, product and finishing requirements, specifications and regulatory obligations. Each business segment is required to comply with requirements stipulated by the specific industry and undertake requirements specified by key stakeholders, such as our customers.

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Supplier Engagement
We send our suppliers an annual supplier performance scorecard audit checklist to keep our suppliers informed of what is important to us. We also conduct on-site annual supplier audits on our top-sending suppliers to safeguard the highest standards in our supply chain. We use the Vendor Audit Programme (“VAP”) checklist and Quality Management Systems (“QMS”) checklist to perform our supplier audits annually. Findings from the audit are communicated to the supplier, which they are then required to communicate its action plans and enact them within a specific timeline if any issues of non-conformance are identified.
In our efforts to motivate a healthy business relation with our suppliers, SAMEE conducts Global Supplier Ethics Training (“GSET”) for our suppliers.

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Local Suppliers
SAMEE makes every effort to support and grow the local economies. SAMEE always prioritises purchasing its material needs domestically unless local suppliers are unable to meet the stringent requirements, especially quality, price and delivery terms, set by the Group.
During FY2023, total purchases from local vendors increased by 16%, in terms of value, on the back of a 26% increase in total revenue. The local purchase amounted to 39% of the total purchase by the Group, compared to 45% in the previous financial year. The drop is largely due to an increase in the sales of products that use more overseas suppliers, as specified by the customers.

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CYBERSECURITY & IT MANAGEMENT
As a result, we continue to place great importance on our internal control framework to protect the privacy and security of data, information and intellectual properties belonging to us and our stakeholders. We have established a range of policies related to cybersecurity and IT management and we constantly review, upgrade and improvise to ensure that they are up-to-date and that our employees are aware of the latest threats. The policies are as follows:
Table 6: Policies related to cybersecurity and IT management
No.
Policies
1.
Acceptable Use Policy
2.
IT Cybersecurity and Incident Response Policy
3.
Network Security Policy
4.
Computing System Usage Policy
5.
Mobile Device Policy
6.
IT Physical Security Policy
7.
Data Classification and Protection Policy
8.
Identity Access Management Policy
9.
IT Risk Management Policy
Our IT team works to ensure the integrity of our IT systems. They protect the system through robust internal controls and engaging external partnerships. Their responsibilities are listed in Table 7 below.
Table 7: Actions by the IT Department
Actions by the IT Department
Developing and implementing effective IT security processes.
Implementing technological upgrades, improvements and major changes in the information security environment.
Serving as a focal point of contact for IT cybersecurity.
Overseeing information security audits, whether performed internally or by third-party providers.
Assessing current IT architecture for vulnerabilities, weaknesses and possible upgrades or improvements.
Managing and configuring physical security, disaster recovery and data backup procedures.
Developing IT security-related policies, standards and procedures, testing and security incident reporting processes.
Providing cybersecurity awareness training to all employees of the SAMEE Group of Companies.
For our day-to-day operations, we continue to emphasise the importance of implementing internal mitigative measures such as antivirus, endpoint protection and firewall protection and 24-hour real-time monitoring and detection of malicious network traffic. Our IT team constantly test the effectiveness of our IT processes and systems while they also conduct regular IT asset management and audits of our systems.
We conduct cybersecurity training for all employees at our operations to ensure they are aware of the imminent existing and potential cybersecurity risks, precautions implemented and our Standard Operating Procedures (“SOP”) in dealing with such risks. All new hires are also required to be briefed on our IT Policy, procedures and the appropriate use of IT services during their orientation. Cybersecurity news and updates are constantly shared with all employees via our SAMEE e-Hub mobile app.
To prevent data loss, we follow the 3-2-1 Backup Rule – to keep at least 3 copies of data, 2 copies on different storage platforms and 1 copy offsite. We also ensure that all our systems require identity access to secure our information. In addition, we have also performed some cybersecurityrelated initiatives below.
i)
Upgraded all our firewalls from the traditional firewall to next-gen firewalls with advanced features of deep packet inspection, intrusion prevention and threat intelligence to protect from sophisticated attacks.
ii)
Upgraded email protection from simple email filtering to Advanced Threat Protection (“ATP”) to protect against advanced and targeted email attacks.
iii)
Implemented 2FA/MFA for Email Accounts, VPN/ remote access, and external facing IT applications.
iv)
Configured VPN/remote access restricted by selected countries.
v)
Conducted multiple Cybersecurity Awareness Training for managers and executives.
vi)
Consistently published cybersecurity-related information and tips via different channels of the corporate memo, SAMEE eHub mobile apps, digital signage, SAMEE Portal and screensaver.
In FY2023, there was zero personal data protection incidents and losses of customer data.

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Driving Technology & Innovation with Our Stakeholders
In our efforts to fully understand the needs and expectations of our customers, SAMEE continues to value the opportunities to collaborate and partner with our customers and suppliers to achieve higher efficiency and transparency in the supply chain network.
As Artificial Intelligence (“AI”), 5G technology and the Internet of Things (“IoT”) continue to drive the semiconductor market and create new business opportunities, we continue to develop higher accuracy and precision turning and milling capabilities to be able to support new requirements in the front end of semiconductor and communication industries. The latest investment in mill-turn and turn-milling machines allows SAMEE to manufacture even more complex parts than existing 5-axis machining centres. These machines are more efficient because they can produce parts with a lower cycle time.
Our initiatives to enable continuous improvement of our product and service quality are as follows:
Table 5: Our Initiatives in FY2023
No.
Our Initiatives
1.
Development and implementation of in-house tooling management system (“TMS”) to reduce inventory holding and optimisation of tooling purchase
2.
Optimisation of the process and cutting tools life to reduce tooling inventory and costs
3.
Develop and implement Customer Relationship Management System (“CRM”) for NPI, e-quotation, contract review and FAI process
4.
Continuous efforts in the development of Robotic Welding System and Robotic Polishing System
5.
Digitisation of Work Instruction
6.
Development of technology roadmap and system enhancement for the warehouse management system, as well as supply chain management system

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Table 3: SAMEE’S Measures To Maintain Product Quality
Procedures in maintaining product quality
Description
Counterfeit Control
The materials and parts we use are only sourced from reputable and designated sources
Hazardous Substance Management
The policy has been established to ensure compliance with the European Union Directive 2011/65/EU on the restriction of the use of certain Hazardous Substances in electrical and electronic equipment (“RoHS”).
Calibration
Our machines and tools are calibrated periodically by external parties to ensure our products meet customer requirements and standards.
Material Integrity
Direct materials and standard components are validated through Certificate of Conformance (“COC”) provided by the suppliers.
Product Testing & Buyoff Check
Our products are verified and tested to ensure all functions meet the stipulated criteria and specifications before shipment.
Certifications
SAMEE maintains the required certifications to ensure world-class quality products and services that meet stringent aviation and equipment manufacturing requirements. Our operations are certified with internationally recognised industry standards, enhancing customer confidence.
Table 4: SAMEE’S Certifications
No.
Our Certifications
1.
ISO 9001:2015 Quality Management System (“QMS”)
2.
ISO 13485:2018 Quality Management System for Medical Device Manufacturing
3.
AS9100 Rev.D. Quality Management System for use by aviation, space, and defense organisations
4.
NADCAP Certification for Non-Destructive Testing, Chemical Processes, Laboratory, Welding, Heat Treatment, Coating and specialised machining
5.
Civil Aviation Authority of Singapore (“CAAS”) Singapore Airworthiness Requirements 21 (“SAR21”) Production Organisation Approval
Documents from our quality management system, such as quality procedures and work instructions, provide guidance to employees for the effective implementation of processes, practices and operations. Furthermore, various types of training are undertaken by our employees throughout the year and regular refresher training updates employees on key areas to maintain the highest quality standards.
We regularly review our internal processes, including conducting periodic product and process audits, continuous improvement initiatives, assessing risks and implementing response plans. Independent Audit or Surveillance applies to all sites to identify deviations from policies, procedures, work instructions and opportunities for further improvement. We also consistently monitor our quality performance with internal indicators that are reported and reviewed regularly. Visual dashboards and electronic monitors are available at each workstation for employees to monitor and be aware of the latest quality performance.