ABOUT THIS SUSTAINABILITY STATEMENT
This Sustainability Statement (“the Report”) provides
a comprehensive overview of SAM Engineering and
Equipment (M) Bhd (“SAMEE”) and its subsidiaries
(“SAMEE Group”)’s sustainability performance, focusing
on key Economic, Environmental, Social and Governance
(“EESG”) aspects. It offers an updated review of our
sustainability initiatives for the financial year, highlighting
the risks and opportunities we face, as well as our forward
looking action plans. For a complete understanding of
how we integrate financial and non-financial performance
with sustainability objectives, this Report should be read
alongside our FY2025 Annual Report. Our integrated
approach reflects our commitment to achieving a
balanced and sustainable growth for the Group.
* All references to the “Company”, “Organisation” or
“SAMEE” refer specifically to SAM Engineering and
Equipment (M) Berhad, the investment holding entity.
All references to the “Group” or “SAMEE Group”
refer collectively to SAM Engineering and Equipment
(M) Berhad and our active subsidiaries included in the
reporting scope for FY2025, namely Aviatron (M) Sdn.
Bhd., Avitron Private Limited, Meerkat Precision Sdn.
Bhd., SAM Meerkat (M) Sdn. Bhd., SAM Precision (M)
Sdn. Bhd., SAM Tooling Technology Sdn. Bhd., and SAM
Precision (Thailand), Limited. The terms “we”, “us”,
“our”, and “ourselves” refer to SAM Engineering and
Equipment (M) Berhad and, where applicable by context,
SAMEE Group as defined above.
We are grateful for the opportunity to share our sustainability commitments and the progress we have made in generating
long-term value for our stakeholders through this Report.
Reporting Period, Scope and Boundary
This Sustainability Statement covers SAMEE Group’s operations in Malaysia, Singapore, and Thailand for the financial year
from 1 April 2024 to 31 March 2025 (“FY2025”), unless otherwise specified. The scope is guided by our internal sustainability
governance and structured around 14 Material Topics, validated through stakeholder surveys and engagement sessions
conducted in FY2025. These topics reflect the Group’s most significant ESG priorities and form the foundation for our
disclosures, performance monitoring, and strategic actions aligned with global reporting standards.
Reporting Frameworks and References
This Sustainability Statement was prepared with reference to the following Main Market Listing Requirements (“MMLR”)
and several international reporting guidelines, guiding principles, frameworks, standards and sustainability-related indices:
- Bursa Malaysia Securities Berhad (“Bursa Malaysia”) Sustainability Reporting Guide (3rd edition)
- Global Reporting Initiative (“GRI”) Universal Standards 2021
- Sustainability Accounting Standards Board (“SASB”) Sector-Specific Disclosures
SAMEE Group is currently in the process of aligning its sustainability disclosures with the International Financial Reporting
Standards (“IFRS”) Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2. As part of our commitment to
enhancing transparency and comparability, we have initiated an internal reference and mapping exercise. The use of
relevant IFRS-related disclosures and the accompanying mapping table is currently under development and will be ready
for disclosure in the subsequent reporting year, reflecting our strategic direction.
In addition, the Group is actively developing its climate scenario analysis capabilities. This analysis is presently in progress
and is targeted for inclusion in the next reporting cycle, in line with our phased approach to improving climate-related risk
and opportunity disclosures.
Assurance Report
This Report has not been subjected to external assurance. Our current priority is to continue enhancing our data collection
processes and improving reporting accuracy. As we progress in our sustainability journey, we are committed to strengthening
the credibility of our disclosures. We plan to undertake assurance, either internally or through an independent external
party, in the future.
Feedback
We value and appreciate all feedback that helps us enhance the relevance of our Reports to better meet the needs of our
stakeholders. For any questions related to our sustainability initiatives or reporting, or if you have any queries, suggestions,
comments, or feedback, please feel free to reach out to us at investorrelations@sam-malaysia.com.
Our Focus on Sustainability
SAMEE Group is committed to conducting our businesses with the long-term view of achieving sustainable benefits for
our organisation and our stakeholders. Hence, we are constantly monitoring, learning, deliberating and preparing to thrive
on the industry trends, operating challenges and stakeholder expectations to produce long-term value for the Group’s
shareholders, stakeholders and the community around us. We commit to holding ourselves to the highest standards in our
work and being a responsible steward in protecting our environment and our stakeholders’ interests.
Associations and Memberships
SAMEE Group recognises the value of participating in industry associations as a means of staying connected to evolving
best practices, regulatory expectations, and emerging global and local trends. Through these affiliations, SAMEE Group is
able to benchmark our practices, exchange insights with industry peers, and contribute to the advancement of responsible
and resilient manufacturing in Malaysia and beyond.
Our participation also supports strategic alignment with sectoral developments related to technology, trade, sustainability,
and human capital, while enhancing our ability to respond to industry-specific risks such as climate change, supply chain
volatility, and talent retention.
In line with this commitment, the Group is actively engaged with several key industry associations. These include:
- Malaysian Semiconductor Industry Association (“MSIA”): A national platform representing the interests of the semiconductor and electronics manufacturing sectors. MSIA facilitates dialogue with government agencies, regulators, and industry players on matters such as regulatory compliance, trade facilitation, industrial policy, talent development, and ESG practices, including climate-related disclosures.
- Free Industrial Zone Penang Companies’ Association (“FREPENCA”): A collective of companies operating within Penang’s Free Industrial Zones, fostering industrial collaboration, infrastructure advocacy, and regulatory engagement to support operational efficiency and business continuity.
- Penang Skills Development Centre (“PSDC”): An industry-led skills training and talent development centre focused on upskilling and reskilling the local workforce, particularly in technical and high-technology domains.
- Malaysian Employers Federation (“MEF”): A national employer organisation that provides guidance on labour law compliance, employment practices, and workforce management, while representing employer interests in policy dialogues.
SAMEE Group will continue to explore further avenues for collaborative learning and sectoral contribution through industry
associations that align with our values, operational context, and EESG commitments.
KEY EESG HIGHLIGHTS FY2025 (PERFORMANCE DATA)
This achievement underscores the Group’s ongoing efforts to institutionalise responsible business practices, strengthen
corporate governance, and implement measurable sustainability and governance initiatives. Moving forward, SAMEE Group
remains focused on maintaining this momentum, ensuring continued EESG transparency and alignment with international
benchmarks.
Sustainability Milestones
SAMEE Group has made significant progress in our sustainability journey over the past few years, setting ambitious goals in
FY2023 to reduce 10% of GHG emissions intensity over 3 years from FY2024 to FY2026. The Company has launched several
initiatives to enhance our Economic, Environmental, Social and Governance performance and operational sustainability.
These include solar panel installations, rainwater harvesting, operational efficiency measures, a carpooling system, recycling
programmes, and the introduction of a Zirconium line in our Thailand operations. SAMEE Group is also committed to
enhancing employee safety through continual policy improvements, such as the Restriction of Hazardous Substance
(“RoHs”) Policy and the Employment Policy. We experienced significant growth in our sustainability efforts and sustainability
milestones in FY2025 and we will continue to prioritise our commitment to sustainability as we grow and innovate.
Figure 1: Sustainability Milestones
UNSDG Target Setting
In addition to the above-mentioned UN SDG-aligned targets, SAMEE Group has also committed to achieving full compliance
with the Restriction of Hazardous Substances (“RoHS”) directive and Conflict Mineral regulations. These commitments
reflect our dedication to promoting responsible material sourcing and ensuring environmentally sound production practices
throughout our supply chain.
APPROACH TO SUSTAINABILITY
Sustainability Governance
The sustainability pillars form the foundation of SAMEE Group’s Sustainability Policy (“Policy”) and we focus priority on
governance considerations to reinforce our commitment to sustainability. The focus is on integrating economic, environmental,
social and governance elements into our daily operations while coordinating our actions with sustainability objectives in
mind. In terms of approach and efforts, we ensure that all our internal stakeholders are aware of our commitment to
sustainability. For this reason, we have integrated our sustainability approach and initiatives into our orientation programme
for our new employees to ensure we have a consistent and shared understanding of the sustainability initiatives and
measures embraced by SAMEE. We promote our sustainability principle and practices among our leaders, internal and
external stakeholders to achieve our sustainable goals.
Figure 2: Sustainability Governance Structure of SAMEE
Figure 3: Board Governance on EESG
SAMEE has instituted a robust sustainability governance
structure to ensure that sustainability principles are
effectively embedded into the Group’s strategic
direction, risk management, and operational execution.
This structure reflects the Board’s commitment to long
term value creation and responsible business practices.
At the apex of the governance framework is the Board
of Directors, which bears ultimate accountability for the
oversight of sustainability matters. The Board plays a
central role in ensuring that material sustainability risks and opportunities are identified, monitored, and integrated
into the Group’s overall strategies and business model.
It is responsible for setting the tone from the top and
ensuring that sustainability remains a key consideration in
the Group’s decision-making processes.
Reporting directly to the Board is the Risk and
Sustainability
Committee (“RSC”), a Board-level
committee entrusted with the oversight of both risk
management and sustainability. The RSC is tasked with
reviewing and recommending the Group’s sustainability
strategies, policies, and performance indicators. It ensures
that the Group’s sustainability-related commitments,
including those related to climate change, resource
efficiency, human capital, and stakeholder engagement,
are implemented with rigour and consistency. The RSC
also reviews the Group’s Sustainability Policy, evaluates
the effectiveness of sustainability practices, and oversees
the preparation of sustainability disclosures. The
Committee convenes on a quarterly basis to deliberate
on key sustainability issues and submits our findings and
recommendations to the Board for consideration.
Operational execution is led by the Sustainability
Committee Working Group (“SCWG”), which comprises
cross-functional representatives from key business
units and corporate functions and meets monthly.
This working group is responsible for implementing
the approved sustainability strategies, collecting and
validating sustainability-related data, managing internal
assessments, and coordinating stakeholder engagement
activities. It plays a critical role in ensuring that the
Group’s sustainability performance is monitored, and that
reporting is consistent with internal controls and external
expectations.
At the operational level, SAMEE Group has also
established Site Sustainability Committees at each
business unit or site. These site-level Committees
are tasked with translating group-wide sustainability
strategies into actionable initiatives tailored to local
contexts. They are responsible for driving the on
the-ground implementation of sustainability efforts,
monitoring site-specific performance, and reporting
progress to the SCWG. In doing so, the Site Sustainability
Committees actively engage employees and local
communities to raise awareness and foster participation
in the Group’s sustainability journey.
This integrated, tiered governance structure ensures
strong alignment between Board-level oversight and
operational implementation, enabling SAMEE Group
to drive continuous improvement in its sustainability
performance while maintaining transparency and
accountability to all stakeholders. It reinforces SAMEE
Group’s dedication to upholding sound corporate
governance, adhering to high ethical standards, and
complying with all applicable laws and regulations
across the jurisdictions in which we operate. Through
this governance framework, we strive to deliver shared
value by engaging employees, partners, shareholders,
government agencies, customers, communities, and the
media in advancing our sustainability objectives.
Stakeholder Engagement
SAMEE Group maintains consistent communication with our stakeholders through diverse channels to identify their primary
concerns and gain insight into potential solutions. In addition to guiding our disclosure and reporting strategies, stakeholder
feedback supports our materiality assessment.
As we navigate the ever-evolving landscape of sustainability, stakeholder engagement remains the cornerstone of our
journey. We recognise that our success is inextricably linked to the voices and perspectives of those who invest in our
mission, rely on our services and share our vision for a more responsible future. In FY2025, we rolled out a materiality survey
to our internal and external stakeholders. The stakeholders were asked to assess the importance of SAMEE Group’s 14
Material Topics that reflect the feedback received during stakeholder engagement sessions.
From the assessment, we were able to assess the significance of each stakeholder group by determining their influence and
dependency, which weightage was then reflected in the materiality matrix. The prioritisation of stakeholders is important
as it indicates how significant a stakeholder group is to SAMEE Group, which would then allow us to understand how
a sustainability matter may be material. The matrix below indicates that SAMEE Group needs to have especially robust
engagements with about half of our stakeholders.
Engaging with our stakeholders is fundamental to our sustainability strategies. By maintaining continuous and inclusive
dialogues with key groups, including Employees / Management / Directors, Shareholders / Investors, Customers, Business
Partners / Suppliers / Trade Associations, Community, Regulators, Media. We gain valuable insights that inform our decision
making processes. This collaborative approach enables us to address industry challenges effectively and adapt to the
evolving landscape.
Through proactive stakeholder engagement, we identify areas where we can make the most significant impact and
uncover opportunities for improvement. This ongoing interaction ensures that our sustainability initiatives are aligned with
stakeholder expectations and contribute to our overarching goal of sustainable growth and operational excellence.
Materiality Assessment
In FY2025, SAMEE conducted a comprehensive materiality assessment exercise to ensure the continued relevance of our
material sustainability matters. The assessment involved engaging internal and external stakeholders through an online
survey to evaluate the priorities and impacts of each material topic. This exercise aimed to reaffirm that the existing 14
material matters remain aligned with SAMEE Group’s strategic priorities and stakeholders’ expectations. The outcomes of
this process are presented in the following materiality matrix, categorising each topic based on our level of significance and
influence.
Materiality Matrix
Each Material Topic was assessed and prioritised using a defined methodology that categorised them into Highly Critical,
Critical, Moderate, Low, or Very Low importance levels. Based on the outcomes, 13 topics were rated as Critical, signifying
strong relevance and alignment with both stakeholder interests and SAMEE Group’s sustainability impact areas. One
material topic, Climate Change and Environmental Issues, was rated as Moderate, reflecting ongoing stakeholder interest
while recognising its evolving maturity in the Group’s sustainability strategy.
This materiality assessment outcome highlights SAMEE Group’s strong alignment between stakeholder expectations and
our strategic impact areas. The validated material topics serve as the foundation for our sustainability strategy, performance
measurement, risk management, and future disclosures. They directly inform our EESG targets, operational focus areas, and
reporting practices with reference to the GRI Standards and Bursa Malaysia’s requirements.
Sustainability Risks and Opportunities
BURSA PERFORMANCE DATA TABLE
APPENDICES
GRI Content Index
SASB Sustainability
Disclosure Topics and Metrics
Aerospace and Defence
Abbreviation
x
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CONTENTS
CORPORATE OVERVIEW
PERFORMANCE REVIEW
SUSTAINABILITY
