SUSTAINABILITY STATEMENT
Ensuring Equitable
Economic Growth
ECONOMIC PERFORMANCE
SAMEE Group manages economic performance through financial discipline, operational efficiency, and responsible
governance to support long-term value creation, and accountability to shareholders, employees, suppliers, and the
wider economy.
Oversight rests with the Board of Directors, supported by the RSC, which reviews key financial and sustainability
related risks. Economic considerations are integrated into the ERM framework to align capital allocation, operational
priorities and investment decisions with the Group’s risk appetite and strategic objectives.
The Group’s economic strategy focuses on operational efficiency, supply chain flexibility and sustainable revenue
growth through high-value manufacturing and precision engineering capabilities. Performance indicators and market
conditions are monitored to respond to cost volatility, regulatory developments and changes in global demand.
Initiatives to improve productivity, optimise resource allocation and strengthen financial discipline are assessed
based on return on investment, scalability and alignment with sustainability priorities.
Direct Economic Impact
In FY2026, SAMEE recorded revenue of RM1,441 million,
representing a decrease of 2.7% compared to FY2025,
primarily driven by a reduction in the Equipment segment
and unfavourable foreign exchange.
Indirect Economic Impact
Beyond direct financial performance, SAMEE Group
contributes to socio-economic development through
responsible procurement, stable employment and long
term investment in local economies across Malaysia,
Singapore and Thailand. These contributions are driven
through supplier engagement, workforce development
and sustained local operations, supporting job creation,
supplier capability development, technology transfer,
employability and productivity growth.
Through this approach, the Group seeks to generate
sustained economic value while contributing to the
resilience and development of the wider economic
ecosystem.
PRODUCT AND SERVICE QUALITY
Product and Service Quality remain central to SAMEE
Group’s operational reliability, customer confidence,
and long-term business sustainability. Operating within
precision engineering and regulated manufacturing
environments, the Group maintains strict adherence
to technical specifications, regulatory standards, and
customer requirements to ensure product integrity and
service reliability.
Failure to maintain quality standards may result in
recalls, warranty claims, customer compensation, lost
sales, regulatory non-compliance and reputational risk.
Conversely, sustained quality performance strengthens
customer trust, long-term partnerships and the Group’s
position as a preferred supplier.
Quality management is embedded across the production
lifecycle through structured governance, digital enablement
and continuous improvement. The Corporate Quality
Assurance Team oversees quality performance across the
Group. Each business unit also maintains a quality function
led by a Quality Assurance Manager (“QAM”). Ultimate
accountability for quality and customer satisfaction
rests with Top Management under the Group’s Quality
Manuals. Group Quality Meetings provide oversight of
key performance indicators (“KPIs”), customer complaint
trends and Root Cause and Corrective Action (“RCCA”)
progress.
Product Safety & Regulatory Compliance
SAMEE Group maintains Quality Management Systems
(“QMS”) aligned with internationally recognised
standards, including ISO standards, AS9100, and NADCAP.
Conformance is verified through periodic internal and
external audits, supported by structured risk assessment
tools such as Process Failure Mode and Effects Analysis
(“PFMEA”). The Group also monitors evolving regulatory
requirements, particularly those governing product safety,
materials usage, and environmental compliance.
During FY2026, SAMEE Group maintained full compliance
with customer and regulatory requirements, with all third
party audits completed without major non-conformities,
reinforcing the Group’s adherence to stringent industry
standards.
Operational Excellence
Operational excellence is driven through disciplined
process control, workforce accountability, and continuous
improvement across the Group’s operations. Digital
tools such as automated inspection systems, visual
dashboards, and electronic traceability systems support
real-time process monitoring and control, as well as
product traceability. These measures reinforce operational
discipline and strengthen the Group’s quality-first culture.
The Group also implements structured training and
incentive programmes, including the Quarterly Quality
Incentive Scheme, which recognises teams demonstrating
strong adherence to quality standards and continuous
improvement efforts.
In FY2026, SAMEE Group received the Supplier Excellence
Award – Best in Class Performance from Applied Materials
Inc.,
reflecting its commitment to product quality,
operational reliability, and customer satisfaction. The
Group also received the Risk Mitigation Award at the RTX
Supplier Conference 2025 in recognition of its supply chain
resilience and risk management practices. Performance
is regularly reviewed through quality indicators and
management oversight to support timely decision-making
and ongoing process optimisation.
Customer Satisfaction and Relationship
As a precision engineering partner to global clients, SAMEE Group recognises that customer satisfaction is closely linked to
product reliability, responsiveness, and the ability to meet evolving technical and delivery expectations. Any lapse in quality,
communication, or delivery performance may result in customer dissatisfaction, rework or contractual risks. Conversely,
consistent service delivery and responsive engagement strengthen client confidence, support repeat business, and position
the Group as a preferred supplier across key industries.
The Group maintains structured engagement channels throughout the product lifecycle. Regular interactions are conducted
through operational reviews, technical discussions and collaborative planning sessions, while dedicated account management
teams support day-to-day communication, technical coordination and issue resolution.
Customer feedback informs service improvement. Periodic customer satisfaction surveys assess performance across key
dimensions, including communication effectiveness, delivery reliability and technical responsiveness. Feedback is analysed
and translated into targeted improvement plans to strengthen service delivery.
The Group also participates in customer-led audits, technical visits, joint improvement programmes, and, where applicable,
sustainability and supply chain assessments to maintain alignment with evolving customer expectations and industry
standards. Customer satisfaction and complaint management indicators continue to be monitored to identify improvement
opportunities.
TECHNOLOGY, INNOVATION AND DEVELOPMENT
SAMEE Group adopts a disciplined, fit-for-purpose
approach to technology and innovation, focusing on
practical,
cost-justified improvements that support
customer requirements and operational resilience.
Innovation investments are guided by operational
relevance, measurable outcomes and alignment with the
Group’s engineering strengths.
The Group’s innovation framework is anchored in four
strategic priorities: sustaining operational continuity
through automation and process stability; enabling
collaborative product development through customised
tooling and specification alignment; enhancing digital
visibility through ERP and planning systems; and improving
operational efficiency through smart manufacturing
solutions.
In line with these priorities, SAMEE Group continues to strengthen operational resilience through measured automation
within high-mix, high-precision manufacturing environments. Integration of ERP platforms across procurement, finance,
and production scheduling supports improved traceability, reduced data redundancy, and enhanced forecasting accuracy.
Digital visual guidance systems and robotic automation technologies further support production precision, reduce manual
handling risks, and improve workflow efficiency
Collaboration with customers remains central to the Group’s innovation approach. Strategic co-design initiatives with
customers in the aerospace and semiconductor sectors support the development of customised components and strengthen
engineering capabilities. Internally, continuous process audits and quality system reviews reinforce operational consistency
and ensure alignment with evolving technical requirements.
In FY2026, SAMEE Group received the National HRD Awards – Excellence in Learning Technology Advancement System
Award, recognising the Group’s commitment to leveraging technology-enabled learning platforms to strengthen workforce
capability and operational readiness.
ETHICS AND COMPLIANCE
Maintaining high standards of ethical conduct is fundamental to SAMEE Group’s long-term sustainability and licence to
operate. Ethical integrity strengthens stakeholder confidence, supports sound decision-making, and reduces exposure
to regulatory, legal, operational, and reputational risks. Strong corporate governance supports value creation across
economic, environmental, and social dimensions by enhancing accountability, ensuring responsible resource management,
and reinforcing fair and ethical treatment of stakeholders.
From an ECONOMIC perspective:
Effective governance enhances
accountability, strengthens investor
confidence, and supports sustainable
financial performance.
From an ENVIRONMENTAL perspective:
Structured oversight enables consistent
management of environmental risks
and regulatory obligations, supporting
responsible resource use and pollution
control.
From a PEOPLE perspective:
Governance frameworks reinforce
ethical conduct and fair treatment,
enabling stakeholders to raise concerns
through established grievance and
whistleblowing channels.
SAMEE Group maintains a structured regulatory compliance and risk governance framework across all jurisdictions in which
it operates, including Malaysia, Singapore, and Thailand. Overall responsibility for governance and compliance resides with
the Board of Directors, supported by the Audit Committee and RSC. The Chief Risk Officer (“CRO”) oversees the ERM
framework, supported by the Risk Management Steering Committee (“RMSTC”), while Internal Audit provides independent
assurance to the Audit Committee.
The Group’s ERM framework is aligned with the COSO Enterprise Risk Management – Integrating with Strategy and
Performance (2017) framework and references ISO 31000 principles. ESG-related risks are integrated into the Group’s
risk register and reviewed annually to support structured risk oversight and decision-making. Material risks are escalated
to senior management and the Board for review and resolution. The effectiveness of risk management and regulatory
compliance processes is assessed through periodic internal audits, management reviews, and Board-level reporting.
ESG risks have been formally incorporated into the Group’s risk register and assessed annually since FY2025, strengthening
the integration of sustainability considerations into enterprise-wide risk management.
SUPPLY CHAIN MANAGEMENT
Supply chain management is integral to SAMEE Group’s
operational resilience and long-term sustainability
performance. As a precision engineering and contract
manufacturing group serving global customers in highly
specialised industries, our operations rely on a multi-tier
supply chain that includes customer-designated suppliers,
specialised subcontractors, and single-source component
providers. Effective oversight of this network supports
production continuity, product quality, and regulatory
compliance, while reducing exposure to operational and
reputational risks.
Our supply chain governance framework adopts a
structured, risk-informed approach that balances
commercial prudence with responsible sourcing practices.
Supplier-related risks, including delivery performance,
capacity constraints, quality issues, and reliance on
single-source suppliers, are formally managed under the
Group’s ERM framework. Key Risk Indicators (“KRIs”),
including Supplier On-Time Delivery performance and
supplier dependency risks, are monitored periodically and
escalated where thresholds are breached.
All suppliers are required to comply with SAMEE
Group’s Supplier Sustainability Policy, which establishes
expectations across environmental, social, health and safety,
and ethical standards. The Policy aligns with recognised
international frameworks, including RBA Code of Conduct,
and incorporates applicable regulatory requirements such
as RoHS compliance. Supplier obligations are reinforced
through onboarding processes, contractual requirements,
and periodic performance reviews.
Supplier selection and engagement follow a policy-driven,
risk-based due diligence process. Screening prioritises
suppliers that are critical, customer-designated, single
source, or otherwise assessed as higher risk. Environmental
and social expectations are embedded within supplier
requirements, including compliance with labour laws,
occupational health and safety standards, and responsible
environmental management practices. Where gaps are
identified, suppliers are required to implement corrective
action plans, supported by ongoing engagement and
monitoring.
To strengthen supply chain resilience, SAMEE Group
conducts regular supplier performance reviews and, where
feasible, promotes the development of second-source
suppliers to reduce dependency risks. Critical suppliers
may also undergo quality and product audits, while supplier
engagement channels support continuous communication,
issue resolution, and performance improvement.
Traceability efforts are applied on a risk-based basis,
focusing on critical or customer-designated suppliers.
Suppliers are required to provide timely and accurate
information on sourcing and production conditions and
may be subject to audits or third-party evaluations where
necessary. This targeted approach supports compliance
and risk mitigation while reflecting the operational realities
of specialised manufacturing supply chains.
Environmental and social expectations are further
reinforced through supplier communication and
engagement initiatives. The Supplier Sustainability Policy
outlines requirements relating to responsible resource use,
pollution control, waste management, labour standards,
and workplace safety. Social safeguards include prohibitions
against child labour, adherence to legal working-hour
requirements, respect for freedom of association where
permitted by law, and compliance with statutory wage
regulations. These expectations are embedded in supplier
contracts and procurement practices to ensure alignment
across the supply chain lifecycle. For more details, please
visit: https://sam-malaysia.com/sustainability-suppliers.html.
SAMEE Group’s supply chain composition is often shaped
by customer specifications and contractual obligations,
limiting full autonomy in supplier selection, although
SAMEE Group supports local sourcing where practicable.
CYBERSECURITY AND IT RESOURCE MANAGEMENT
In an increasingly digitalised operating environment,
cybersecurity and IT resource management are
essential
to
safeguarding
business
continuity,
protecting sensitive information, and maintaining
stakeholder trust. Strong data security supports reliable
operations, enables secure digital collaboration, and
reinforces confidence among customers and business
partners. Conversely, cybersecurity failures may result in operational disruptions, financial losses, regulatory exposure, and reputational harm.
SAMEE Group adopts a structured approach to
cybersecurity governance, recognising its role in
protecting data integrity, ensuring system availability,
and supporting compliance with applicable data
protection laws across all jurisdictions in which we
operate. Oversight is centralised under the Corporate
IT function and supported by external consultants
and periodic compliance reviews. IT infrastructure
is designed with redundancy and disaster recovery
readiness in mind, while access to mission-critical
systems is governed through role-based permissions,
user activity monitoring, and escalation protocols.
To manage cybersecurity risks effectively, SAMEE Group’s
cybersecurity and IT governance framework is structured
around five focus areas:
- Enterprise systems, servers, and automation platforms
are protected through access controls, routine system patching, and performance monitoring to maintain operational stability and reduce exposure to system disruptions. - Data Privacy and Protection
Employee, customer, and business data are safeguarded through encryption protocols, secure data retention practices, and compliance with applicable privacy regulations across operating jurisdictions. - User Training and Awareness
Cybersecurity briefings, phishing simulations, and IT policy refresher sessions are conducted regularly to strengthen employee awareness and reduce human related cybersecurity risks. - Disaster Recovery and Business Continuity
The Group applies the 3-2-1 backup principle and maintains offsite backups to support system restoration. Disaster recovery readiness is periodically tested to ensure operational continuity in the event of cyber incidents or system failures. - Policy Enforcement and Security Assurance
Cybersecurity policies are formalised through structured governance documents, supported by internal audits, defined reporting procedures, and continuous monitoring of security events.
Supporting these measures, SAMEE Group maintains a
comprehensive suite of cybersecurity and data protection
policies, including Acceptable Use, IT Cybersecurity and
Incident Response, Data Classification and Protection,
Identity and Access Management, IT Risk Management,
and Cloud Security policies. These policies define
responsibilities, escalation pathways, and security
requirements across all levels of the organisation.
To strengthen cybersecurity resilience, the Group conducts
periodic vulnerability assessments, penetration testing,
cybersecurity gap analyses, and social engineering
simulations across internal systems and third-party
interfaces. Identified gaps are addressed through targeted
remediation actions, including strengthening endpoint
protection controls, enhancing system configurations, and
closing legacy system exposures.
Backup and disaster recovery readiness is further
supported through extended data retention periods,
periodic restoration testing, and validation exercises. Real
time cybersecurity advisories and threat alerts are also
communicated internally to maintain workforce awareness
of evolving cyber risks.
ISSB SUSTAINABILITY STATEMENT