pg6 – SAM-AR26

SUSTAINABILITY STATEMENT

Empowering Employees
and Communities

EMPLOYEE WELL-BEING, HEALTH AND SAFETY

SAMEE Group is committed to providing a safe, healthy, and supportive working environment for employees and contractors. Occupational safety and employee well-being are integral to operational resilience, regulatory compliance, and workforce sustainability. The Group’s Occupational Safety and Health (“OSH”) Policy applies across all operations and external parties, establishing requirements to prevent work-related injuries and ill health while ensuring compliance with applicable legislation and industry practices.

Oversight of OSH is provided by RSC, which regularly reviews safety performance indicators, including incident rates and training coverage. This governance structure reinforces accountability and supports the Group’s objective of achieving a zero-harm workplace culture. The Group has also established quantitative safety improvement targets to drive continuous performance enhancement.

UNSDG-aligned Target:

Reduce man-hour loss per employee by
20% by FY2025
30% by FY2030
Against the FY2023 baseline

SAMEE Group’s health and safety strategy is led by the Chief Operating Officer (“COO”) and guided by five key principles:

Full compliance with applicable occupational safety legislation across Malaysia, Singapore, and Thailand;
Group-wide adoption of standardised EHS procedures supported by regular audits;
Periodic review and refinement of Hazard Identification, Risk Assessment and Risk Control (“HIRARC”) documentation and Job Safety Analyses (“JSAs”) to reflect evolving operational risks;
Development of competent safety committees and EHS officers to support effective site-level implementation; and
Continuous improvement of leading safety indicators, including near-miss reporting and safety engagement metrics, to proactively address hazards before they result in incidents.

This OSH framework is implemented through a formal Occupational Health and Safety Management System (“OHSMS”) guided by legal requirements, recognised standards, and best practices, including ISO 45001 and the Occupational Safety and Health Act (“OSHA”) 1994. The OHSMS is supported by internal EHS procedures that establish consistent roles, responsibilities, and processes across operations in Malaysia, Singapore, and Thailand to enable proactive hazard identification, assessment, and mitigation.

The framework emphasises continuous improvement through regular review of incident trends, corrective and preventive actions, ongoing training, and measurable performance targets.

Risk Management and

Incident Response

Occupational risks are managed using a structured, risk-based framework anchored on the HIRARC methodology. Risk assessments are conducted across all operational activities, including new and existing projects, to identify hazards and implement control measures in line with the hierarchy of controls. Safety requirements are reinforced through mandatory inductions, targeted training programmes (including fire safety, first aid, forklift, and crane operations), and ongoing safety communications across all sites.

Incident management follows a formal protocol covering immediate reporting and containment, root-cause analysis, and the implementation of corrective and preventive actions (“CAPA”), supported by follow-up monitoring to prevent recurrence. Investigation outcomes are escalated to management and periodically reported to the Board via RSC, with lessons integrated into procedures and training programmes.

Certain roles are exposed to occupational hazards such as noise, chemicals, ergonomic strain, and manual handling risks. These are managed through targeted control measures and risk mitigation programmes across operational sites, such as:

OUR RISK MITIGATION INITIATIVES

Employees are empowered to report hazards through confidential whistleblowing channels, supported by the Group’s zero reprisal policy. Any form of retaliation is subject to disciplinary action. Employees also have the right to refuse or withdraw from work they reasonably consider unsafe. In such cases, affected areas are secured immediately, and corrective actions are implemented before operations resume.

Worker Participation and

Engagement Across the Value Chain

SAMEE Group promotes a strong safety culture through structured worker participation mechanisms embedded within its Occupational Health and Safety (“OHS”) framework. Health and safety matters are regularly discussed through Joint Health and Safety Committees (“JHSCs”), EHS Committees, and OSHE meetings established in line with legal requirements. These platforms enable employees to raise concerns, contribute to safety planning, and support continuous improvement. Where required by regulation, 100% of workers are represented through formal joint health and safety committees.

The Group extends its occupational safety standards to contractors and external service providers to ensure consistent safety performance across the value chain. Contractors are required to comply with SAMEE Group’s OSH requirements and complete safety inductions prior to commencing work.

Employee and contractor engagement in safety practices includes:

VIEW SAFETY ENGAGEMENTS

Safety considerations are integrated across all project phases, from planning to execution and operations. Non-compliance issues, including PPE violations or unsafe practices, are addressed through investigation, corrective actions, retraining, and, where necessary, disciplinary measures to ensure alignment with Group safety standards.

Employee Health and

Wellness

SAMEE Group adopts a holistic approach to employee health and well-being that extends beyond injury prevention, incorporating preventive healthcare and wellness initiatives to support long-term workforce health.

During FY2026, key initiatives included:

PERKESO Health Screening Programme (June 2025) to promote preventive care and early detection of health conditions;
Hand Safety Campaign under the Group’s EHS Safety Campaign (“Toward Zero Incidents”), featuring awareness videos, workplace briefings, and targeted safety engagements; and
Safety Awareness Talks conducted in collaboration with DOSH to reinforce safe work practices and strengthen awareness of occupational health and safety risks.

The Group monitors occupational safety performance against applicable regulatory requirements and recognised industry practices, including DOSH guidelines and the National Occupational Injury and Disease Statistics 2023. Our OSH data is subject to internal verification through audits and committee reviews to ensure accuracy and reliability.

EXPLORE SAFETY PERFORMANCE

The Group recorded an LTIR of 0.41 in FY2026, a 16.32% improvement from 0.49 in FY2025, while maintaining zero fatalities. Man-hour loss per employee decreased to 0.33, representing a 54% reduction from the FY2023 baseline of 0.72 and exceeding the Group’s FY2030 target of a 30% reduction.

LABOUR PRACTICES AND RIGHTS

SAMEE Group upholds fair labour practices, respect for human rights and responsible workforce management as essential to operational resilience and long-term value creation. Across Malaysia, Singapore and Thailand, the Group maintains policies, procedures and governance oversight aligned with local labour laws and internationally recognised standards, with the Responsible Business Alliance (“RBA”) Code of Conduct serving as a key reference framework. The provisions of the RBA Code draw upon internationally recognised standards, including the United Nations (“UN”) Guiding Principles on Business and Human Rights.

Human rights principles are embedded within the Group’s Code of Conduct, Labour & Ethics Policy, and related Human Resources policies, covering:

Prohibition of child labour
Prohibition of forced or compulsory labour
Provision of fair wages in accordance with applicable laws
Reasonable working hours aligned with statutory requirements
Safe and healthy workplace conditions
Humane treatment of all employees
Zero tolerance for workplace discrimination

These policies are communicated annually and made available in relevant local languages to support workforce understanding, including among migrant and expatriate employees. For more details, please visit: https://www.sam-malaysia.com/sustainability-labour-practices.html.

Human rights and labour matters are championed by the Human Resources function, supported by site leadership and senior management, with oversight reinforced through internal governance and sustainability reporting processes that provide visibility to senior management and the Board.

Ethical Labour Practices

SAMEE Group maintains comprehensive policies and procedures to ensure that all employees are treated fairly and with dignity. Our ethical labour framework is guided by RBA Code of Conduct and supported by internal policies, including the Labour and Ethics Policy and Child Labour Prohibition Policy. These standards apply across all operating locations and are reinforced through recruitment control, strict documentation procedures, monitoring of working hours and wages, and ongoing employee training on labour standards and workplace ethics.

Labour-related risks are managed as part of SAMEE Group’s broader enterprise risk management and Human Resources governance processes. Where risks or issues are identified, corrective actions are implemented in accordance with established internal procedures. To reinforce accountability, SAMEE Group maintains transparent grievance mechanisms supported by strict non-retaliation policies. Employees and stakeholders are provided with safe and confidential channels to report concerns, which are investigated in accordance with established escalation protocols.

Prevention of Child and Forced Labour

SAMEE Group strictly prohibits child labour, forced labour, bonded labour, and unethical recruitment practices. Compliance is supported through age verification during recruitment, workforce monitoring, and risk assessments conducted across operations and supplier networks.

FY2026 Performance Highlights

No workers below the legal minimum age were employed across SAMEE Group operations or supplier sites in FY2026.
No young workers were exposed to hazardous work conditions.
No instances of bonded, trafficked, or coercively employed labour were identified across geographic or operational segments.
No operations or suppliers were identified as being at risk of incidents involving child or forced labour.

These outcomes reflect the effectiveness of our labour governance, due diligence, and monitoring processes.

Responsible Labour Practices Across Operations and Supply Chains

SAMEE Group extends its labour standards to contractors and suppliers through its Supplier Code of Conduct, Supplier Sustainability Policy, and structured procurement screening and vendor onboarding processes. Suppliers are required to comply with the Group’s labour and human rights requirements and are subject to screening during the onboarding process.

Ongoing monitoring includes supplier self-assessments, periodic audits, and targeted reviews for higher-risk suppliers. These measures strengthen transparency, mitigate labour-related risks, and promote responsible labour practices across the value chain, supporting alignment with internationally recognised labour standards.

Workforce Metrics and Human Rights Performance

SAMEE Group monitors workforce trends and labour-related indicators annually to strengthen transparency and accountability. The following metrics provide an overview of workforce stability and human rights performance. Where material changes or trends are identified, appropriate actions are taken to address underlying drivers and enhance workforce stability.

Security Personnel Trained in Human Rights Policies or Procedures

All security personnel, including in-house and outsourced security service providers, receive training on human rights and appropriate conduct aligned with company policies, local regulatory requirements, and RBA principles, equipping them with the necessary framework to uphold human rights and ethical conduct across all operational sites. In FY2026, a 100% training rate was achieved through annual in-person sessions.

Equality and Diversity

SAMEE Group recognises equality and diversity as essential to workforce sustainability, operational continuity, and long-term business performance. As a manufacturing- and engineering-driven organisation operating across multiple jurisdictions, a diverse and capable workforce supports productivity, stability, regulatory compliance, and resilience, while reducing risks associated with talent shortages and reputational exposure.

Equal employment opportunities are upheld through the Group’s Code of Conduct and Human Resources policies, with employment decisions based on merit, capability, and suitability without discrimination based on personal characteristics. Structured recruitment processes, competitive remuneration, performance management systems, and ongoing training and development programmes further support workforce capability and engagement.

Equality and diversity matters are overseen by senior management, with Board-level visibility through governance and sustainability reporting processes. Implementation is led by Human Resources, supported by site leadership. Key enablers include recruitment and performance systems, grievance mechanisms, and employee engagement initiatives such as workplace cultural awareness programmes.

The Group maintains a zero-tolerance approach to discrimination and harassment. Policies explicitly prohibit discrimination based on race, religion, gender, age, nationality, disability, sexual orientation, and other protected characteristics. These requirements are embedded in the Code of Conduct and Human Resources policies and communicated through onboarding and periodic policy updates.

Key initiatives to promote equality and diversity include:

Fair and transparent recruitment and promotion processes.
Youth employment through internships, apprenticeships, and graduate programmes.
Prioritisation of local employment for operational, technical, supervisory, and administrative roles.
Reasonable accommodations for religious practices where applicable.
Workplace adjustments to support employees with disabilities.
Structured disciplinary and grievance procedures addressing discrimination and harassment.

Gender diversity is tracked internally to support balanced representation. In FY2026, female representation at the management level reached approximately 32%, exceeding the Group’s internal benchmark of 30%. The workforce also reflects a balanced age profile, with around 78% of employees aged 40 and below, indicating strong youth participation across operations.

Foreign, migrant, and expatriate employees are treated equitably in accordance with formal Human Resources policies, including the Employment of Foreign Workers Policy. Employment decisions for non-local workers are governed by documented procedures that ensure compliance with applicable labour regulations and provide equal access to wages, benefits, working conditions, training, and grievance mechanisms. Policies are communicated in accessible formats and relevant languages.

Employee feedback mechanisms, including engagement sessions, employee satisfaction surveys, and exit interviews, support ongoing monitoring of workplace culture and workforce satisfaction, enabling early identification of issues and continuous improvement. Through these measures, SAMEE Group fosters an inclusive workplace culture grounded in respect, collaboration, and long-term organisational resilience.

Incidents of Discrimination and Corrective Actions Taken

SAMEE Group maintains a zero-tolerance stance toward workplace discrimination and ensures that all reported concerns are managed through formal investigation and remediation processes. Employees and stakeholders have access to grievance and whistleblowing mechanisms that allow confidential reporting of discrimination or human-rights-related concerns without fear of retaliation. Where incidents occur, they are formally reviewed by the relevant internal committee, and if the concerns are substantiated, corrective actions may include disciplinary measures, policy enhancements, and targeted training interventions.

No incidents of discrimination were reported or substantiated during FY2026.

EMPLOYEE LEARNING AND DEVELOPMENT

SAMEE Group recognises employee learning and development as a key enabler of workforce capability, operational resilience, and long-term business sustainability. As a manufacturing and engineering-driven organisation operating across multiple jurisdictions, workforce competency directly supports operational quality, safety performance, regulatory compliance, productivity, and employee retention, while strengthening long term competitiveness.

The Group adopts a structured approach to training and development under formal Human Resources governance processes. Programmes are designed to enhance role-specific competencies, strengthen leadership capability, and support operational readiness across all job categories.

Learning initiatives are delivered through a combination of on-the-job training (“OJT”), internal programmes, external courses, and digital learning platforms, including SAM University, which provides accessible learning pathways across functional and technical areas.

Training Governance and Implementation

Training and development fall under the purview of senior management, with oversight provided through governance reporting mechanisms to RSC. Training performance indicators, including total and average training hours, are periodically reported to support management oversight. Minimum training hour targets are established to promote consistent workforce development, and training progress is monitored throughout the year.

Implementation is led by the Learning and Development function, supported by line managers and site leadership. Resources include dedicated Human Resources personnel, annual training budgets (including national training support funds where applicable) and digital learning platforms for programme delivery and tracking.

Training activities are managed through a structured process incorporating Training Needs Analysis (“TNA”), annual planning, and performance and career development reviews. This process considers role-specific competency requirements, appraisal outcomes, regulatory and safety training needs, and evolving business requirements.

Learning initiatives include:

OJT to strengthen job-specific competencies
technical capability development to support engineering and operational functions
leadership and supervisory training to enhance workforce management capability
digital learning modules to support continuous learning and skills development

Annual Report 2026

SCALING INTELLIGENCE
ACCELERATING GROWTH

Annual Report 2026

SCALING INTELLIGENCE ACCELERATING GROWTH

SCALING INTELLIGENCE
ACCELERATING GROWTH