Sustainability
Statement

ECONOMIC AND
GOVERNANCE

OUR BUSINESS PERFORMANCE

SAMEE is a Malaysian-based global technology company dedicated to delivering superior products and services that exceed customer expectations while maintaining competitive pricing. We steadfastly align our operations with sustainable development goals and lead technological advancement across all sectors. Furthermore, we prioritise fostering local communities by emphasising local employment and engaging with reputable suppliers. Recognising the imperative of adaptive responsiveness to evolving customer needs, we remain resolute in cultivating a resilient supply chain to facilitate enduring sustainable growth.

PRODUCT AND SERVICE QUALITY

Management Approach

At SAMEE, our foremost priority lies in maintaining the relevance of our products and services, ensuring sustainability in manufacturing, and upholding stringent quality control measures to meet both customer specifications and international standards. To achieve this, SAMEE is committed to empowering process owners for quality control and leveraging advanced technologies to enhance operational efficiency across all stages of product and service development.
All our endeavours are guided by the framework outlined in our Quality Policy and Manual. We place a strong emphasis on continual improvement initiatives aimed at enhancing employee well-being, productivity, and overall organisational performance, thereby upholding the utmost standards of product safety.

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 6: SAMEE’s Certifications

No. Our Certifications
1 SO 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 National Aerospace and Defense Contractors Accreditation Program (“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
Our quality management system documentation, encompassing quality procedures and work instructions, serves as a comprehensive guide for employees, facilitating the effective execution of processes, practices, and operations. Additionally, our workforce undergoes various types of training throughout the year, including regular refresher sessions, to ensure proficiency in key areas and uphold the highest quality standards.
To continually enhance our operations, we conduct regular internal process reviews, encompassing product and process audits, as well as ongoing improvement initiatives. These efforts include risk assessments and the implementation of responsive action plans. Independent audits or surveillance activities are conducted across all sites to identify any deviations from established policies, procedures, or work instructions, as well as opportunities for further enhancement.
Furthermore, we maintain vigilant oversight of our quality performance through the regular monitoring of internal indicators. Visual dashboards and electronic monitors are strategically positioned at each workstation to provide employees with realtime insights into the latest quality performance metrics, fostering heightened awareness and accountability.

TECHNOLOGY, INNOVATION AND DEVELOPMENT

Management Approach

SAMEE is committed to pioneering innovation and technological advancements, driving efficiency and delivering value through Project ARK (Automation, Reduction, Knowledge). This flagship initiative is designed to optimise automation processes, minimise waste, and preserve manufacturing expertise.
To maintain a competitive edge, we strategically undertake projects aimed at leveraging computer simulation software to fine-tune production parameters and expanding automation to reduce reliance on manual labour. Our facilities are equipped with coordinated measuring equipment and wireless inspection gauges, enabling continuous statistical analysis of captured inspection data to enhance and maintain product quality. Real-time production feedback is provided through dashboards displayed at our workstations. SAMEE remains dedicated to investing in relevant innovation and technology to bolster operational efficiency.

Driving Technology & Innovation with Our Stakeholders

As we endeavour to fully grasp our customers’ needs and expectations, SAMEE actively seeks opportunities for collaboration and partnership with both customers and suppliers to enhance efficiency and transparency throughout the supply chain network.
Through initiatives such as the Robotic Automation Project and the integration of Work Instruction Systems, we have optimised productivity and upheld stringent quality standards across diverse product lines. The implementation of Carousel systems has further revolutionised our operational accuracy, while Material Planning & Simulation Software has enabled us to streamline inventory management and meet delivery goals with precision. Additionally, our foray into sustainable energy with solar panel installations and EV charging stations underscore our commitment to environmental stewardship. These endeavours underscore our relentless pursuit of efficiency, transparency, and sustainability, ensuring that we continue to exceed the expectations of our valued customers and partners.

Targets, Strategies and Initiatives

Our initiatives to enable continuous improvement of our product and service quality are as follows:
Table 7: Our Initiatives To Improve Product and Service Quality in FY2024
No. Our Initiatives
1 Quarterly Quality Incentive
2 Quarterly Corporate Process and Quality System Compliances Audit
3 A robotic automation project to enhance productivity and ensure consistent quality across diverse product lines in high-mix, low-volume manufacturing
4 Carousel implementation to enhance accuracy in guided assembly processes and optimise material retrieval procedures for improved accuracy

ECONOMIC PERFORMANCE

SAMEE achieved a record revenue of RM1,497 million in FY2024, an increase of 3.6% from the previous financial year. For more information on the economic performance, please refer to the Management Discussion & Analysis section in the SAMEE’s Annual Report FY2024 under pages 24 to 29.

CUSTOMER SATISFACTION AND RELATIONSHIP

Management Approach

We are committed to fostering long-term growth by nurturing strong relationships with existing customers and expanding our reach to attract new ones. Central to this endeavour is our Quality Policy, which has been instrumental in guiding us and earning the trust and confidence of our customers, particularly those operating within critical industries with stringent quality standards.

Targets, Strategies and Initiatives

We have appointed dedicated programme leaders to oversee both existing and new customers, acting as the primary point of contact for any product or programmerelated issues. In FY2024, our commitment to continuous improvement was evident through initiatives such as further review of our Process Failure Mode and Effects Analysis (“PFMEA”) to enhance product quality, automation projects, and intensified focus on quality improvement, all of which were informed by improved customer surveys. This proactive approach has significantly contributed to elevating our performance metrics, including on-time delivery, product quality, and productivity. Furthermore, we provide on-site support to cultivate stronger relationships and actively contribute to our customers’ product development initiatives. Our active participation in improvement programmes, on-site reviews, and production assessments is geared towards reducing turnaround time and effectively addressing any arising issues.
To ensure the utmost customer satisfaction, we proactively solicit feedback through annual surveys and review scorecards from our key customers. This feedback serves as a valuable resource, allowing us to reinforce areas of commendation, rectify any areas of concern, and implement constructive suggestions. The scorecards serve as a tool for measuring performance across various metrics, including quality, lead time, responsiveness, cost competitiveness, and after-sales support.
Strategic engagement with our customers is fostered through Quarterly Business Reviews (“QBR”) involving senior management. These reviews enable us to evaluate performance, understand evolving needs, and anticipate future requirements. Through a comprehensive analysis of strengths, weaknesses, opportunities, and risks, we strive to enhance our customer service and position ourselves as their preferred supplier for future growth.

Performance Data

In FY2024, SAMEE maintained its commitment to delivering exceptional customer satisfaction. Quarterly business reviews conducted throughout the year reflected continued high performance across various metrics that are tracked internally by SAMEE. Customer feedback gathered from annual surveys and scorecards further reinforced our dedication to meeting and exceeding customer expectations. Metrics used to track and measure customer satisfaction demonstrated significant improvements. Notably, our OTD performance remained consistently high for the majority of customers, earning us Preferred Supplier Status with certain key clients and securing our position among the Top 3 Contract Manufacturers for others. Additionally, our dedication to excellence was recognised through awards from our key customers, including a Delivery Performance Award for Aviatron, Malaysia, and an Outstanding Quality Performance Award for SAM Precision, Malaysia. These accolades underscore our relentless pursuit of excellence and our unwavering commitment to customer satisfaction.

CYBERSECURITY AND IT MANAGEMENT
(GRI 418)

Management Approach

In our ongoing drive towards digital transformation and the adoption of cyber technology, SAMEE remains steadfastly vigilant to the pervasive cybersecurity risks, particularly given that our clientele primarily comprises multinational corporations (“MNCs”) and industry leaders.
Consequently, we place significant emphasis on our internal control framework to safeguard the privacy and security of data, information, and intellectual property belonging to both ourselves and our stakeholders. We have implemented a suite of policies governing cybersecurity and IT management, regularly reviewing, enhancing, and refining them to ensure their currency and to keep our employees abreast of the latest threats. Our cybersecurity and IT management policies are as follows:
Table 8: 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

Targets, Strategies and Initiatives

Our IT team is dedicated to upholding the integrity of our IT systems. Through the implementation of stringent internal controls, they ensure the security and reliability of our systems against cyber threats.

Their responsibilities are listed in Table 7 below.

Responsibilities of 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.
In our day-to-day operations, we maintain a strong focus on implementing internal mitigative measures, including antivirus software, endpoint protection, firewall security, and round-the-clock real-time monitoring to detect malicious network traffic. Additionally, our IT team regularly assesses the effectiveness of our IT processes and systems through testing, conducts routine IT asset management, and performs system audits.
We provide comprehensive cybersecurity training to all employees to raise awareness of both existing and potential cybersecurity threats, the precautions in place, and our Standard Operating Procedures (SOP) for managing such risks. During orientation, new hires are briefed on our IT Policy, procedures, and guidelines for the appropriate use of IT services. Furthermore, cybersecurity news and updates are regularly disseminated to all employees through our SAM Portal, Corporate Memo and SAMEE e-Hub mobile app.
To mitigate the risk of data loss, we adhere to the 3-2- 1 Backup Rule, which involves maintaining at least three copies of data, storing two copies on different platforms, and keeping one copy offsite. Additionally, stringent identity access controls are enforced across all our systems to enhance information security. Below are some of our cybersecurity-related initiatives:
  1. Email phishing simulation to employees.
  1. Cybersecurity awareness training.
  1. Vulnerabilities assessment and penetration testing.
  1. Strengthened email security and firewall protocols to mitigate risks.
  1. Transitioned security monitoring to a more advanced SOC, enhancing threat detection capabilities.
  1. Company website migration and transitioned to a dedicated server for improving security posture and ensured security hardening measures were implemented.

Performance Data

In FY2024, there was zero personal data protection incidents and losses of customer data.

SUPPLY CHAIN MANAGEMENT
(GRI 204)

Management Approach

Supplier partnerships are integral to SAMEE’s business success, and we acknowledge supply chain disruptions as a significant risk. We place paramount importance on sustainable and responsible supply chain management to ensure consistent sourcing, cost competitiveness, and efficient delivery of high-quality products and services. Strengthening the supply chain is imperative for business continuity planning and aligns with UNSDG 12: Responsible Consumption and Production.
We have expanded our risk mitigation strategy within our supply chain management for critical materials by diversifying our sources to minimise the impact on our supply chain. All our key materials suppliers and contractors are required to adhere to our standards and have committed to this by issuing and signing a Letter of Conformance for the parts they produce 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
  • SAMEE Corporate Purchasing Policy
  • SAM Precision (SPA) Purchasing and Vendor Control
  • SAM Precision (SPE) Vendor Selection and Registration Procedure
  • Control of Purchase Order Procedure
  • SAMEE Environmental Policy
  • Whistleblowing Policy
  • Tender Policy
  • Prevention of Counterfeit

Targets, Strategies and Initiatives

We adhere to our customers’ requirements and, to guarantee their utmost satisfaction, we have implemented measures to ensure that our products comply with RoHS and Conflict Mineral regulations. Notices to our suppliers are sent out with regard to our RoHS commitment.

Supplier Screening

SAMEE meticulously evaluates our suppliers’ product quality and the presence of ISO management systems and certifications. Currently, all our material suppliers, without exception, attest to sourcing from conflict-free regions. We place paramount importance on urging our suppliers to effectively manage and mitigate any actual or potential risks related to non-compliance, environmental concerns, and social issues, encompassing labour rights and standards, environmental management, as well as ethical and integrity matters.
The Procurement Department at SAMEE plays a pivotal role in upholding the stringent integrity and ethical standards of the entire Group. Before engaging a supplier, our Procurement Department ensures that the supplier agrees to our terms and conditions, which include adherence to our Code of Conduct, compliance with relevant laws outlined in our Purchase Order (“PO”) forms, and adherence to our material, product, and finishing specifications and regulatory obligations. Additionally, each business segment is mandated to comply with industry-specific requirements and fulfil obligations specified by key stakeholders, including our esteemed customers. Suppliers are qualified into the Approved Vendor List (“AVL”) based on a set of requirements, non-disclosure agreements are signed with all existing/new vendors, and our Code of Business Conduct and Ethics is sent to all suppliers to mitigate and raise awareness on anti-bribery and corruption.

Supplier Engagement

We provide our suppliers with an annual audit checklist for supplier performance scorecards to clearly communicate our priorities. Additionally, we conduct on-site audits annually for our primary suppliers to uphold the highest standards within our supply chain. These audits utilise the Vendor Audit Programme (“VAP”) checklist and Quality Management Systems (“QMS”) checklist. Any findings from these audits are promptly communicated to the supplier, who is then required to develop and implement action plans within a specified timeframe to address any identified non-conformities. We also monitor and track our supplier and vendor performance quarterly and will notify them on their performance rating and any necessary mitigation actions required.

Local Suppliers

Performance Data

During FY2024, total purchases from local vendors increased by 8% in terms of value, on the back of a 3.6% increase in total revenue. The local purchases amounted to 47% of the total purchases by the Group, compared to 39% in the previous financial year.

LOCAL COMMUNITIES AND INDIRECT ECONOMIC IMPACT
(GRI 201)

SAMEE is committed to contributing back to society, particularly the communities in which we operate, while also investing in the future of upcoming generations. These communities play a vital role in our growth, especially given that many of our employees hail from these areas. As we fulfil our social responsibilities, we actively encourage our employees to volunteer for causes we support, fostering their sense of compassion and empathy towards society.

Performance Data

Throughout FY2024, SAMEE remained dedicated to its community investment efforts, exemplified by our contributions totalling RM86,500 through the Titian Harapan Program. This comprehensive program includes a range of initiatives aimed at supporting education and uplifting deserving individuals in the community. As part of this commitment, we continued our sponsorship of students enrolled in the Penang Skills Development Centre (“PSDC”), with a total investment of RM6,300, benefiting seven (7) students. Additionally, we extended our support to six (6) selected External Schools, focusing on students with outstanding academic achievements and coming from households with an income of less than RM3,000. Our assistance facilitated their return to school, with an investment of RM15,750, benefiting 63 students. Furthermore, through the Employees’ Children Excellence in Education and Back to School Incentive, we provided aid to employees with a basic salary of less than RM4,000, amounting to an investment of RM64,450 and benefiting 210 students. These initiatives underscore our commitment to fostering educational opportunities and making a meaningful impact in the communities we serve.

CORPORATE GOVERNANCE

SAMEE’s corporate governance framework encompasses a Code of Business Conduct and Ethics (referred to as the ‘Code’), an anti-bribery and corruption policy, and a whistleblowing policy. We hold our employees to high standards of integrity in all their interactions with stakeholders, and any breach of the Code is considered unacceptable. We actively encourage the reporting of incidents involving misconduct or non-compliance.

CODE OF CONDUCT

To provide further clarity, our Code includes detailed policies covering Business Ethics, Standards of Conduct, and Conflicts of Interest. The Code covers the following topics:

Conflicts
of Interest

Anti-Bribery
& Corruption

Gifts and
Entertainment

Confidential
Information

Insider
Trading

Money
Laundering

Compliance
with law and
regulations

Whistle
Blowing

Figure 5: Our Code on Business Conduct and Ethics (“Code”)

All SAMEE employees are required to adhere to the Code, which outlines behavioural principles and responsibilities both within and outside the Company. These principles are communicated and underscored during training sessions. Employees affirm their commitment to ethical business practices and compliance through the signing of the SAM Employee Agreement.

CORE VALUES

Figure 6: Our Core Value

RISK MANAGEMENT

SAMEE‘s Enterprise Risk Management Framework is aligned with the principles and guidelines outlined in the Committee of Sponsoring Organisations of the Treadway Commission’s ‘Enterprise Risk Management – Integrating with Strategy and Performance 2017’. This framework is deeply integrated into the Group’s management systems.
SAMEE introduced an updated risk management framework in 2021, aimed at addressing significant ESG concerns, regulatory compliance, and strategic objectives. This framework is in line with the revised corporate governance standards outlined in the Malaysian Code of Corporate Governance, as issued by the Securities Commission of Malaysia in April 2021.
The Risk and Sustainability Committee, as delegated by the Board has the responsibility of reviewing the risk management framework and dashboards, including identifying significant risks and developing action plans. The Chief Risk Officer, along with management personnel and the risk management teams within business units, provide support to the RSC in its operations. SAMEE upholds principles of ethical and transparent business conduct through the enforcement of internal control policies, which are readily accessible on the Group’s website.

ETHICS AND COMPLIANCE

Management Approach

In an era of globalised economies, evolving regulations, and diverse governmental and economic landscapes, fostering a culture rooted in ethics and integrity is paramount. Our corporate governance system is designed to ensure robust risk management and effective internal controls. Detailed insights into our Corporate Governance Overview Statement can be found in our Annual Report on pages 70 to 87.

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 visit http://samee.asia and be directed to a third-party portal to submit their report. This third-party service ensures confidentiality and impartiality in the initial handling of the complaints. The submitted reports are then directed to the Chief Executive Officer and the Chairperson of the Audit Committee for appropriate handling based on the severity of the complaint.

Performance Data

We would like to report that no complaints were received during the reporting period.

ANTI-BRIBERY AND CORRUPTION
(GRI 205)

The SAMEE Group strictly prohibits bribery and corruption, imposing severe consequences for any breaches. Suppliers receive annual reminders of our zerotolerance stance and are expected to adhere to these principles. We actively encourage suppliers to report any conflicts of interest. Our employees receive annual policy reminders, with those in sensitive roles required to confidentially disclose any financial indebtedness.
Under the Anti-Corruption Amendments, listed companies on Bursa Malaysia are mandated to establish policies and procedures to combat corruption and promote whistleblowing. These measures shield public listed companies (“PLCs”) from corporate liability related to corruption. The Board of Directors will review these policies and procedures periodically, at least once every three years, to assess their effectiveness. Additionally, the amendments require PLCs to include corruption risks in their annual risk assessments, including those of affiliated companies.
At SAMEE, our management philosophy has long revolved around the principles of “No Bribery, Zero Corruption” across all aspects of our operations, predating the implementation of Section 17A of the MACC Act 2009. Our policies outline our ethical approach to conducting business on a daily basis. Our Anti-Bribery and Corruption Policy is publicly accessible on our website.
All our directors have participated in training sessions on anti-corruption measures and will continue to stay abreast of antibribery and anti-corruption policies and practices. SAMEE has communicated its anti-corruption policies and procedures to all of our staff members across three countries, ensuring comprehensive coverage. Furthermore, 100% of our total workforce has received comprehensive anti-corruption training. SAMEE has developed additional training methods, such as e-learning, to improve communication and training on anti-corruption policies and procedures to make training more accessible and convenient for our employees.
All our business partners have been briefed on and attended training on 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 disseminated through email or newsletters. During the FY2024 period, there were no reported or identified incidents of corruption within SAMEE, reflecting our commitment to upholding high standards of ethical conduct and integrity in our operations.
To enhance awareness among our employees regarding Anti-bribery and Corruption (“ABC”) initiatives, SAMEE progressed with an annual refresher course via e-learning in FY2024. This online course training serves as a comprehensive tool to reinforce our commitment to ethical business practices and compliance with regulations. Furthermore, we ensured that all decision-makers and managers in Malaysia completed the online ABC learning programme, underscoring our dedication to fostering a culture of integrity and accountability across the organisation.
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