sustainable value & uniting lives

sustainability report 2015-2016

YEARS OF SUSTAINABLE VALUE& UNITING LIVES

SUSTAINABILITY REPORT 2015-2016

KEY HIGHLIGHTS

>99%SUPPORT LOCAL HIRING WITH

27%INJURY FREQUENCY RATE REDUCED BY

IN 2016 COMPARED TO 2015L O C A LUEM ALERTVOLUNTEERS

906AS AT 31 DECEMBER 2016

BILLION RM8.3

SHAREHOLDERS’ FUNDS STOOD AT

AS AT 31 DECEMBER 2016

BILLION RM27.2

TOTAL ASSETS OF MORE THAN


BUMIPUTERA VENDOR DEVELOPMENT PROGRAMME (BVDP)

39 VENDORS ENROLLED UNDER OUR

52.94%

54.94% BY

82% BY

ISO 14001

OHSAS 18001 AND

ISO 9001 CERTIFICATION

OF OUR OPERATIONSARE COVERED BY

COUNTRIES14

WORLDWIDE OPERATIONS

ACROSS

EMPLOYEES 21,000MORE THAN


WORLDWIDE

27,704MORE THAN

BACK-TO-SCHOOL PROGRAMME

UNDERPRIVILEGEDPRIMARY AND SECONDARY SCHOOLS STUDENTSBENEFITED FROM OUR

MILLION* RM39.5

* INCLUSIVE OF ZAKAT DISBURSEMENT IN 2015 AND 2016

SPENT ON CORPORATE COMMUNITY CONTRIBUTIONS IN 2015 AND 2016

INVESTED IN

PROVIDED ASSISTANCE TO 3,200 INDIVIDUALS ACROSS EIGHT STATES

MILLIONRM1.06

#uem50 CSR

OF WORKFORCE BEING

SUPPORT THE

UNITED NATION SUSTAINABLE DEVELOPMENT GOALSIN TRANSFORMING OUR WORLD

50 Years of Sustainable Value & Uniting LivesUEM Group is celebrating five decades of excellence in sustainability achievements. Our businesses hold top positions in key markets, categories and industry segments around the world with a well-diversified portfolio of strong brands and leading technologies. We have an excellent track record of financial performance. As we continue to empower and unite lives, we focus on delivering value throughout the entire life-cycle of our operations. All of this is only possible with a highly engaged and passionate global team, united by a common purpose and strong values.

EXPRESSWAYS TOWNSHIP & PROPERTY DEVELOPMENT

ASSET & FACILITY MANAGEMENT

ENGINEERING & CONSTRUCTION


Visit us at

www.uem.com.my

FEATURES OF THIS REPORT

This report is available at www.uem.com.my

To access our Sustainability Report on your mobile device, please download a QR Code reader and scan the image on the left.

1UEM GROUP BERHAD


About This Report 2

Corporate Profile 3

Corporate Structure 6

Presence Worldwide 7

Core Businesses 8

Board of Directors 14

Leaders of UEM Group of Companies 16

Milestones 18

UEM Group’s 50th Anniversary 23

Key Achievements and Awards 24

Message from the Group Managing Director/ Chief Executive Officer

28

WHAT’S INSIDE

Our Sustainability Commitment 31

Our Approach to Stakeholder Engagement 34

2015-2016 Event Highlights 35

Materiality 40

Corporate Governance 43

Economic 48

Environment 56

Social 66

UEM Group Sustainability Pledge - Moving Forward 120

Glossary 121

GRI Index Table 124

2 UEM GROUP BERHAD


UEM Group Berhad (UEM Group) Sustainability Report 2015-2016 is the second consolidated Sustainability Report to be produced by UEM Group and its subsidiaries (UEM Group of Companies). This report represents group-wide economic, environmental and social performance.

UEM Group of Companies delivers increased value to clients, shareholders and other stakeholders by embedding sustainability across its service lines and operations.

Report Coverage

UEM Group of Companies refers to UEM Group and its subsidiaries also known as Operating Companies comprising PLUS Malaysia Berhad (PLUS), UEM Sunrise Berhad (UEM Sunrise), UEM Builders Berhad (UEM Builders), Cement Industries of Malaysia Berhad (CIMA) and UEM Edgenta Berhad (UEM Edgenta).

Reporting Cycle

Biennially

Reporting Period

This report covers UEM Group of Companies’ performance from 1 January 2015 to 31 December 2016.

Report Quality

The principles of balance, comparability, accuracy, timeliness, clarity and reliability have been applied in the preparation of this report. Sustainability trends from two previous years have been provided so that meaningful comparisons can be made.

Report Content

The principles of stakeholder inclusiveness, sustainability context, materiality and completeness were applied in defining the report content. All stakeholder concerns and sustainability issues were incorporated into UEM Group of Companies’ strategic planning processes and are presented in this report.

ABOUT THIS REPORT

FEEDBACKThis report is available to all stakeholders in hard copy on request or can be downloaded from our corporate website www.uem.com.my

For further enquiries, please contact:

Corporate ResponsibilityUEM Group Berhad (6551-K)17-2 Mercu UEMJalan Stesen Sentral 5Kuala Lumpur Sentral50470 Kuala LumpurMalaysia

Tel : +603-2727 6868Fax : +603-2727 2222Email : [email protected]


Guidelines

Principal Guideline:• Global Reporting Initiative (GRI) G4

Sustainability Reporting Guidelines

Additional Guidelines:• Bursa Malaysia Sustainabil i ty

Reporting Guide• Silver Book GLC Transformation

Manual: Achieving Value through Social Responsibility

• International Organisation for Standardization (ISO) 26000:2010 Guidance on Social Responsibility

• Judges’ feedback from various sustainability reporting awards

2 UEM GROUP BERHAD

3UEM GROUP BERHAD


UEM Group is Malaysia’s leading engineering-based infrastructure and services conglomerate and an international entity operating in emerging and matured economies. We focus on four key businesses namely Expressways, Township & Property Development, Engineering & Construction and Asset & Facility Management.

We have more than 21,000 employees. Our core geographic market and headquarters are in Malaysia. We also have a significant presence in India, Indonesia, Singapore, Taiwan, Australia, New Zealand, Canada, South Africa and the Middle East.

UEM Group is a wholly owned subsidiary of Khazanah Nasional Berhad, the strategic investment fund of the Government of Malaysia.

As at end December 2016, our total assets were RM27.2 billion while our shareholders’ funds stood at approximately RM8.3 billion.

We have the ability, expertise and resources to deliver and manage key infrastructure development projects and services for the public and private sectors.

CORPORATE PROFILE

WE BUILD BRIDGES, URBAN TRANSITS

AND AIRPORTS SO THAT PEOPLE

ARE BETTER CONNECTED

WE BUILD PROPERTIES AND TOWNSHIPS FOR COMMUNITIES TO LIVE AND GROW

WE BUILD AND SERVICE HOSPITALS SO

INDIVIDUALS ARE CARED FOR

WE BUILD AND MAINTAIN

EXPRESSWAYS THAT TRAVERSE

THE NATION

4 UEM GROUP BERHAD


Uniting lives for a better futureTo continuously provide infrastructure and related services that connect communities and improve their lives. We realise this by being a trusted provider of world-class products and services.

Pushing boundaries and innovating to advance communitiesUEM Group connects and improves the lives of communities by relentlessly enhancing and engineering the way we progress – we empower our workforce, simplify solutions and implement world-class innovations.

CORPORATE PROFILE

VISION

MISSION

5UEM GROUP BERHAD


CORPORATE PROFILE

We are an enterprising entity that embraces teamwork, integrity and passion with a focus on success

Strong values define our culture and help us execute UEM Group’s strategy in line with our Vision and Mission.

VALUES

We achieve success by pushing boundaries, thinking creatively resulting in out-of-the-box innovative ideas and solutions.

We are enterprising and competitive with a mind-set geared towards creating greater value for our stakeholders.

TEAMWORK

We hold true to ethical and professional behaviour to set the highest standards of integrity, honesty and trust.

INTEGRITY

We are passionate, driven, competent and committed to gain knowledge and improve skill sets to achieve personal growth and exceptional performance.

PASSIONSUCCESS

We practise teamwork, mutual respect, open communications and empowerment while embracing diversity and inclusiveness to foster internal and external collaborations.

ENTERPRISING

6 UEM GROUP BERHAD


PLUS Expressways International Berhad

PLUS Malaysia Berhad

EXPRESSWAYS TOWNSHIP & PROPERTY DEVELOPMENT

ENGINEERING & CONSTRUCTION

ASSET & FACILITY MANAGEMENT

100%100% 69%

100%51%

66%

100%

Listed on Main Market of Bursa Malaysia Securities Berhad

Companies/shareholding as at 31 December 2016

CORPORATE STRUCTURE


6 UEM GROUP BERHAD

7UEM GROUP BERHAD


1. Canada

2. United States of America

3. United Kingdom

4. Saudi Arabia

5. Qatar

6. United Arab Emirates (UAE)

7. South Africa

8. India

9. Taiwan

10. Malaysia

11. Singapore

12. Indonesia

13. Australia

14. New Zealand

1

2

3

45

6

7

8 9

10

11

12

14

13

Expressways

Township & Property Development

Engineering & Construction

Asset & Facility Management

LEGEND


PRESENCE WORLDWIDE

7UEM GROUP BERHAD

8 UEM GROUP BERHAD


01PLUS MALAYSIA BERHAD (PLUS)

PLUS, the expressway arm of UEM Group, is the largest highway operator in Malaysia and has been operating the country’s toll roads since 1988.

PLUS operates and maintains almost 1,200 kilometres (km) of expressways stretching from the border of Thailand in the North to Singapore in the South as well as on the East Coast.

PLUS EXPRESSWAYS INTERNATIONAL BERHAD (PEIB)

PEIB is the international expressway arm of UEM Group with presence in India, via Uniquest Infra Ventures Private Limited and Indonesia via PT Lintas Marga Sedaya.

For more information on PLUS, visit www.plus.com.myEXPRESSWAYS

CORE BUSINESSES

9UEM GROUP BERHAD


02UEM SUNRISE BERHAD (UEM SUNRISE)

Listed on the Main Market of Bursa Malaysia, UEM Sunrise has core competencies in macro township development; high-rise residential, commercial, retail and integrated developments; as well as property management and project & construction services.

Internationally, UEM Sunrise’s presence extends into Canada, Australia, South Africa and Singapore.

For more information on UEM Sunrise, visit www.uemsunrise.comTOWNSHIP & PROPERTY DEVELOPMENT

CORE BUSINESSES

10 UEM GROUP BERHAD


03ENGINEERING & CONSTRUCTION For more information on UEM Builders, visit www.uembuilders.com

CORE BUSINESSES

UEM BUILDERS BERHAD (UEM BUILDERS)

UEM Builders is an international construction company with a strong track record in delivering key infrastructure projects. Over the years, it has spearheaded numerous projects of national significance spanning highways, bridges, stadiums, railways and urban transits, water infrastructure, airports, hospitals, institutions, commercial buildings and residential developments for both the public and private sectors, locally and internationally.

11UEM GROUP BERHAD


For more information on OPUS, visit www.uemedgenta.com

03ENGINEERING & CONSTRUCTION

OPUS GROUP BERHAD (OPUS)

Opus, a subsidiary of UEM Edgenta Berhad, is a leading multidisciplinary consultancy that has served over 12,000 worldwide clients to date. Major projects comprise of Expressways & Highways, Built Environment, Airports & Railways, and Utilities. Headquartered in Malaysia, Opus’ presence extends to New Zealand, Australia, the United Kingdom, Canada, the United States and the Middle East.

CORE BUSINESSES

12 UEM GROUP BERHAD


For more information on CIMA, visit www.cima.com.my

03ENGINEERING & CONSTRUCTION

CEMENT INDUSTRIES OF MALAYSIA BERHAD (CIMA)

CIMA is one of the leading cement manufacturers in Malaysia and is known for producing and distributing high-quality cement, ready mixed concrete and related products since 1975. CIMA’s corporate office is located in Kuala Lumpur and it has two plants strategically located in Bukit Ketri, Perlis and Bahau, Negeri Sembilan. It has a total cement production capacity of 7.2 million tonnes per annum.

CORE BUSINESSES

13UEM GROUP BERHAD


04ASSET & FACILITY MANAGEMENT For more information on UEM Edgenta, visit www.uemedgenta.com

UEM EDGENTA BERHAD (UEM EDGENTA)

UEM Edgenta is one of the region’s largest Total Asset Solutions entities.

Listed on the Main Market of Bursa Malaysia with a market capitalisation of RM2.9 billion as at 31 December 2016, UEM Edgenta is a leader in Total Asset Solutions providing three key offerings namely Consultancy, Services and Solutions across four core sectors – Healthcare, Infrastructure, Real Estate and Water. UEM Edgenta provides full suite of services throughout their asset life cycles and these include consultancy, procurement and construction planning, operations and maintenance, as well as optimisation, rehabilitation and upgrades.

UEM Edgenta has a workforce of 19,000 multi-national and multi-disciplinary employees spread across Malaysia, New Zealand, Australia, the United Kingdom, Canada, the United States, India, Indonesia, Singapore, Taiwan and the Middle East.

CORE BUSINESSES

14 UEM GROUP BERHAD


BOARD OF DIRECTORS

Tan Sri Dato’ Sri Zamzamzairani Mohd IsaNon-Independent Non-Executive Director

Lim Tau Kien Independent Non-Executive Director

Standing left to right

Tan Sri Dato’ Ir Omar IbrahimIndependent Non-Executive Director

Academician Tan Sri Dr Ahmad Tajuddin Ali, FASc, P.EngChairman

Sitting left to right

Abdul Kadir Md KassimIndependent Non-Executive Director

* Tan Sri Dato’ Sri Zamzamzairani Mohd Isa was appointed as a Non-Independent Non-Executive Director of UEM Group Berhad on 9 May 2017.

15UEM GROUP BERHAD


Dato’ Mohamed Nasri SallehuddinNon-Independent Non-Executive Director


Dato’ Noorazman Abd AzizDeputy ChairmanNon-Independent Non-Executive Director

Zaiviji IsmailNon-Independent Non-Executive Director

Wong Shu HsienNon-Independent Non-Executive Director


Dato’ Izzaddin IdrisGroup Managing Director/Chief Executive Officer

* Dato’ Noorazman Abd Aziz was appointed as Non-Executive Deputy Chairman of UEM Group Berhad on 14 April 2017.

BOARD OF DIRECTORS

16 UEM GROUP BERHAD


Anwar Syahrin Abdul AjibManaging Director/Chief Executive OfficerUEM Sunrise Berhad

Preamakanthan D KanapathyChief Operating OfficerUEM Builders Berhad


Rohit ChandakChief Executive OfficerUniquest Infra Ventures Private Limited

Datuk Azman IsmailManaging DirectorPLUS Malaysia Berhad


Mohd Yusri Md YusofManaging DirectorCement Industries of Malaysia Berhad

* Datuk Azman Ismail was appointed as the Managing Director of PLUS Malaysia Berhad on 1 January 2017.

LEADERS OF UEM GROUP OF COMPANIES

17UEM GROUP BERHAD


Datuk Ir. Mohd Zulastri Mohd AminPresident DirectorPT Lintas Marga Sedaya

Dato’ Azmir MericanManaging Director/Chief Executive OfficerUEM Edgenta Berhad


Dato’ Izzaddin IdrisGroup Managing Director/Chief Executive Officer UEM Group Berhad


Datuk Nik Airina Nik JaffarManaging DirectorPLUS Expressways International Berhad

LEADERS OF UEM GROUP OF COMPANIES

18 UEM GROUP BERHAD


MILESTONES

2015

• In support of the Government’s Bumiputera Empowerment Agenda, UEM Group and Majlis Amanah Rakyat or MARA signed an MoU which will see both parties exploring potential cooperation and collaboration targeting Malaysia’s Bumiputera community. Areas of potential cooperation include education, entrepreneurship, investment and management services.

UEM GroupFEB 24

• UEM Edgenta completed the acquisition of an 80% equity stake in KFM Holdings Sdn Bhd, an integrated facilities management service provider specialising in green building solutions with a client base in Malaysia and the United Arab Emirates.

UEM EdgentaAPR 6

• CIMA continues to organise tuition classes for UPSR students for Daerah Jempol/Jelebu and Kuala Pilah and also several adopted schools in Perlis. The programme has seen over 1,500 students from 43 schools benefiting from this programme.

CIMAMAR 9

• Edgenta Mediserve Sdn Bhd (Edgenta Mediserve) signed the 10-year Hospital Support Services (HSS) new Concession Agreement with the Government of Malaysia.

MAR UEM Edgenta11

• UEM Edgenta secured major local and overseas contracts worth more than RM4.72 billion in 2014 and 2015.

UEM EdgentaMAY 25

• Indonesian President Joko Widodo inaugurated the 116.75km Cikopo-Palimanan toll road which is the longest toll road ever built in Indonesia and one of the largest constructions ever built jointly by Indonesian and Malaysian companies.

UEM GroupJUN 13

• Uniquest Infra Ventures Private Limited commenced commercial operations or toll collection of its first greenfield project in the country. The 123.4km highway connects Jetpur and Somnath in the state of Gujarat.

UEM GroupJUL 1

• PLUS completed the 63.3 km Fourth Lane Widening Project covering- Interchange Shah Alam to Interchange Sg.Buloh (16.1km)- Interchange Bukit Lanjan to Jln Duta Toll (7km)- Interchange Sg.Buloh to Interchange Rawang (13.1km)- Interchange Nilai Utara to Interchange Nilai (5.2km)- Interchange Nilai to Interchange Port Dickson (21.9km)

Southbound only

PLUSJUN 30

19UEM GROUP BERHAD


MILESTONES

• UEM Sunrise and Mitsui & Co. Ltd. entered into a joint venture agreement with Nusajaya Tech Park Sdn Bhd, a company jointly owned by Asia’s leading business space solutions provider, Ascendas, to offer Build-to-Suit properties for lease in Nusajaya Tech Park, Iskandar Malaysia.

UEM SunriseJUL 28

• PLUS continues its initiative in spreading road safety messages to the public through a mural contest for secondary schools. The ‘Malaysians Unite For Road Safety’ (MUFORS) Inter-School Mural Competition was once again staged in 2015 and it was the fourth time the mural contest has been organized since 2009.

PLUSAUG 5

• PLUS implemented Electronic Toll Collection (ETC) as an initiative to facilitate faster transaction at the Penang Bridge Toll Plaza, Jitra and Bukit Kayu Hitam Toll Plazas (on the North-South Expressway) and Lunas and Kubang Semang Toll Plazas (on the Butterworth-Kulim Expressway, BKE).

Full implementation of ETC in PLUS highway is targeted to be completed by end of 2016.

PLUSSEP 9

• A new interchange was introduced in Bandar Ainsdale for NSE users heading towards Seremban. The interchange, which acts as an alternative route to Seremban, is a twelve-lane toll plaza where users can pay by cash, Touch ‘n Go or SmartTAGs.

PLUSAUG 11

• Joint venture with Resource Data Management Asia Sdn Bhd and formation of Edgenta Energy Services Sdn Bhd to offer energy management solutions and remote monitoring services.

UEM EdgentaAUG 26

• UEM Sunrise launched several projects in 2015 which has a gross development value of some RM2 billion. These include The Conservatory in Melbourne, Serene Heights in Bangi, Sefina in Mont’Kiara and Estuari in Puteri Harbour.

UEM SunriseSEP 26

• In October, UEM Sunrise formally commenced construction of Aurora Melbourne Central.

UEM SunriseOCT 21

• UEM Sunrise acquired its third property in Melbourne, Australia – a 21-storey, 16,000 square metres office tower on 412 St Kilda Road for AUD$58 million (approximately RM161 million). It is located at a strategic corner site of St Kilda Road, one of the main routes into the Melbourne CBD.

UEM SunriseOCT 26

20 UEM GROUP BERHAD


MILESTONES

2015• The fourth ISKARNIVAL, organised by Khazanah Nasional,

Iskandar Investment Berhad and UEM Sunrise, attracted more than 100,000 visitors.

UEM SunriseDEC 5-6

• UEM Group’s Back-to-School Programme sees an increase in number of recipients – from 11,000 in 2014 to more than 14,000 in 2015 including deserving employees across UEM Group of Companies. A total of 311 personnel and 706 children received Back-to-School provisions.

UEM GroupDEC 18

• UEM Builders in a joint venture with Samsung Korea secured the contract to construct the 644 metres Merdeka PNB118 Tower, set to be the tallest building in Southeast Asia and the second highest in the world after Burj Khalifa.

UEM BuildersDEC

• CIMA collaborates with University Malaysia Perlis Malaysia (UniMAP) on research to optimize the overall energy replacement efficiency of solid fossil fuel with rice husk.

CIMANOV 21

• UEM Group built 58 homes for the 2014 flood victims of Kuala Krai, Kelantan.

UEM GroupNOV 25

• UEM Sunrise undertook many education-based CR projects throughout the year including the annual 7th Pintar Al-Quran Programme with the ‘Khatam Al-Quran’ ceremony to mark the notable achievement of 151 pre-schoolers from its seven adopted KEMAS kindergartens around Gelang Patah.

UEM SunriseNOV 14

• 1,000 PLUS staff participated in the Company’s annual PLUS Community Day programme which takes place on a single day at 26 locations across the country.

PLUSOCT 29

21UEM GROUP BERHAD


MILESTONES

2016

• Malaysia’s first holistic township management services operator was formed via a joint venture between UEM Sunrise Edgenta TMS Sdn Bhd and Township Management Services Sdn Bhd, the latter being a wholly owned subsidiary of Medini Iskandar Malaysia Sdn Bhd.

UEM Sunrise & UEM EdgentaJAN 13

• Various activities were organised to celebrate UEM Group’s Golden Jubilee including nationwide Corporate Responsibility (CR) initiatives and Charity Run held in Kuala Lumpur; Kangar, Perlis; and Iskandar Puteri, Johor Bahru. Proceeds were donated to selected charitable organisations.

UEM GroupMAR 10

• The upgrading of the 3.2km elevated Bayan Lepas Expressway (BLE) from Batu Maung to Sungai Nibong, Penang was completed and opened to motorists on 6 April 2016 by Minister of Works, YB Dato’ Sri Haji Fadillah Yusof. The project was not only completed on schedule and below budget but it recorded zero fatalities and more than 3.3 million man hours worked without lost time injury.

UEM BuildersFEB 10

• UEM Sunrise completed the topping out for the high-rise component of its Symphony Hills development in Cyberjaya, Selangor known as Verdi eco dominiums. The topping out ceremony signified the structure completion of the development in accordance with the project’s schedule.

UEM SunriseMAR 14

• UEM Sunrise entered into a Joint Venture Agreement with diversified investment conglomerate, Mulpha International Berhad, to develop three land parcels fronting the Malaysia-Singapore Second Link in Iskandar Malaysia, Johor.

UEM SunriseFEB 16

• SUTL Enterprise Limited, via its wholly-owned subsidiary SUTL Marina Holdings Pte. Ltd. entered into an agreement with UEM Sunrise via UEM Land Berhad to incorporate, finance and operate a joint venture company to develop the existing private marina, a mega yacht marina and a public marina in Puteri Harbour of Iskandar Puteri in Iskandar Malaysia, Johor.

UEM SunriseFEB 22

• UEM Sunrise completed the mixed use development project, Teega @Puteri Harbour located in Iskandar Puteri, Johor in accordance with the project’s schedule. Built on 10 acres of land in UEM Sunrise’s Puteri Harbour, the project commands a gross development value of RM1.34 billion and comprises four components – Teega Residence, Teega Suites, Teega Tower and Teega Walk.

UEM SunriseAPR 7

22 UEM GROUP BERHAD


MILESTONES

2016

• Operationalisation of the Command and Contact Centre (CnC).

UEM EdgentaAUG 29

• With the acquisition of Asia Integrated Facility Solutions Pte. Ltd., which owns UEMS Pte. Ltd. (UEMS), UEM Edgenta has expanded into a regional hospital support services provider in the public and private healthcare sectors with footprints in Singapore and Taiwan.

UEM EdgentaDEC 15

• In ensuring the public enjoy a more comfortable journey on its highways, PLUS allocated some RM25 million in 2016 to upgrade selected Rest and Service Areas (RSAs) and lay bys. It has invested almost RM260 million for the same since 2005.

PLUSSEP 29

• UEM Group announced that it is investing some RM150 million on an integrated Enterprise Resource Planning (ERP) Cloud Solution for the Company and its subsidiaries with an aim to revolutionize its technological capabilities.

UEM GroupOCT 5• UEM Sunrise completed 351 landed units of Bayu

Nusantara in Iskandar Puteri, presentation ceremony was organised and graced by the Chief Minister of Johor, comprising 241 units of Rumah Mampu Milik Johor measuring 18’ x 60’; 80 units of Perumahan Komuniti Johor measuring 16’ x 55’ and 30 units of Kedai Kos Sederhana measuring 20’ x 60’. To symbolise the development’s completion, a key presentation ceremony was organised and graced by the Chief Minister of Johor, Dato’ Mohamed Khaled Nordin, accompanied by Tan Sri Dr. Ir. Ahmad Tajuddin Ali, Chairman of UEM Sunrise.

UEM SunriseJUN 5

• UEM Sunrise signed a Joint Land Development Agreement with Telekom Malaysia Berhad to develop a 1.69 acre land parcel in Jalan Raja Chulan, Kuala Lumpur into a high-rise mixed development comprising serviced apartments and retail elements.

UEM SunriseMAY 27

• Official opening of Alor Pongsu Elevated Interchange which provided direct access to the NSE for residents of Alor Pongsu, Bagan Serai, Selama and surrounding areas reduces travel time from the North and South to Alor Pongsu for 45 minutes to 10 minutes.

PLUSJUN 7

• UEM Sunrise’s upmarket high-rise residential property, 28 Mont’Kiara in the Central Region was named the World Silver Winner by FIABCI World Prix d’Excellence Awards 2016 in Panama.

UEM SunriseMAY 25

23UEM GROUP BERHAD


In 2016, UEM Group celebrated its 50th Anniversary with its internal and external stakeholders.

The Golden Jubilee celebration provided an opportunity for UEM Group to recall five decades of excellence and challenges faced while communicating our future journey with stakeholders.

Activities and initiatives held in conjunction with this celebration included Charity Run, Internal Quiz & Slogan Competition and Tahlil/Majlis Doa Selamat, and #uem50 CSR activities. Commemorative gifts were given to staff and a special coffee table book was published.

Charity Run

Internal Quiz & Slogan Competition

Commemorative Gifts

#uem50 CSR Project

Charity Run was held between 13 March and 6 August 2016 at three venues namely the New Klang Valley Expressway (NKVE), Stadium Tuanku Syed Putra in Kangar, Perlis and Iskandar Puteri in Johor.

Our stakeholders and their family members were invited to take part in the run to celebrate this special occasion. Funds raised were donated to Yayasan Kanser Tunku Laksmana Johor, Yayasan Tuanku Syed Putra, IJN Foundation, The Malaysia Association for the Blind and The National Autism Society of Malaysia. Each beneficiary received RM88,800.

An Internal Quiz & Slogan Competition was organised to garner internal participation and create excitement amongst personnel of UEM Group of Companies. Cash prizes and hampers were accorded to winners of the quiz and slogan competition.

Commemorative Gifts were distributed to personnel of UEM Group of Companies. In addition, UEM Group also provided a Golden Gift – one-time cash gift that ranges from RM2,000 to RM5,000 per person for all UEM Group of Companies’ employees earning RM6,000 or less a month. It was also extended to its UEM Group SL1M trainees. Key and several external stakeholders were also presented with a commemorative gift – a customised gold plated watch designed for the 50th Anniversary celebration, as well as a coffee table book.

#uem50 CSR Project had two phases. The first phase focused on lightening the financial burden of underprivileged individuals. The second phase concentrated on improving the quality of their living conditions and establishments in need of assistance.

23UEM GROUP BERHAD

24 UEM GROUP BERHAD


KEY ACHIEVEMENTS AND AWARDS

UEM Group of Companies prides itself on providing high-quality deliverables and services to both clients and industries at large. Being at the forefront of industry innovation, our commitment to quality and excellence is reflected in the industry awards received over the years.

1 International Clen Marina Award

2 QLASSIC Excellent Award 2015/2016

3 2015 Frost & Sullivan Asia Pacific Integrated Facilities Management Competitive Strategy Innovation & Leadership Award

4 Malaysia Landscape Architecture Award 2016

5 28 Mont’Kiara FIABCI Prix d’Excellence Awards 2016

6 Starproperty.my Awards 2016

12

3

4

25UEM GROUP BERHAD


5


7 Malaysian Landscape Architecture Award (11 Mon’t Kiara & Beethoven, Symphony Hills)

8 Malaysian Landscape Architecture Award (11 Mon’t Kiara & Beethoven, Symphony Hills)

9 Arcoris Mont’Kiara Certified Five Star in SHASSIC Assessment

10 Teega @ Puteri Harbour Certified Five Star in SHASSIC Assessment

89

107

6

26 UEM GROUP BERHAD


Summary of Achievements in 2015 and 2016


Gradmalaysia.com Malaysia’s 100 Leading Graduate Employers UEM Sunrise Berhad Ranked 4th Top 100 Employers 2015

Asia Pacific Property Awards 2015 – 2016Residensi Sefina Mont’Kiara Best Residential High-Rise Architecture Malaysia

ILAM-MLAA 201411 Mont’Kiara Property Developer AwardSymphony Hills – BeethovenProperty Developer Award

Property Insight Prestigious Developer Awards 2015UEM Sunrise Berhad Top 10 Developers Award

Property Insight Prestigious Developer Awards 2015UEM Sunrise Berhad Top 10 Developers Award

Frost and Sullivan Excellence Awards 2015UEM Sunrise Berhad Builder of the Year

The Edge Top Property Developers Awards 2015UEM Sunrise Berhad Ranked 7th Top Property Developer

iProperty.com People’s Choice Awards 2015Residensi Sefina Mont’Kiara Best High-Rise Development

Iskandar Malaysia Social Hero Award 2015UEM Sunrise Berhad Corporate Social Responsibility Category

iProperty.com People’s Choice Awards 2015Residensi Sefina Mont’Kiara Best High-Rise Development

TABAS (Tapak Bina Sejahtera) Award 2015Verdi eco-dominiums

27UEM GROUP BERHAD


Summary of Achievements in 2015 and 20162015 2016


• Top 20 Shortlisted Company for ACCA MaSRA 2015 • MATRADE Award (Cross Border Investment)

• International Convention on Quality Control Circles (Gold Award)

• Malaysia 100 Excellent Enterprise (Golden Eagle Award)

• Malaysia Power Brand Award (Established Brand Award)

• National Team Excellence (NTEx) (Innovative and Creative Circle – 3 Star Gold Award)

• The Brand Laureate Award (Most Eminent Brand Icon Leadership Award)

• Anugerah Emas-3-Bintang – Konvensyen Team Excellence Peringkat Wilayah 2016

• 3-Star Gold Award at the 6th Annual Productivity and Innovation Conference & Exposition (APIC 2016)

• Anugerah 5S-Hijau from SIRIM Berhad for four RSAs namely Seremban Arah Utara, Dengkil Arah Utara, Nilai Arah Utara and Nilai Arah Selatan

• FTSE4Good Bursa Malaysia

• 2015 Frost & Sullivan Asia Pacific Integrated Facilities Management Competitive Strategy Innovation & Leadership Award

• FORBES ASIA’s “Best Under a Billion” 2015

• Gold Awards (3 and 2 stars) at the Annual Productivity & Innovation Conference & Exposition (APIC) 2015

• Special Mention under the Best Project Award (Infrastructure Project – Major) by the Malaysian Construction Industry Excellence Award 2015 (MCIEA)

• 2016 Frost & Sullivan Malaysia Facilities Management Company of the Year Award

• NCE 100 Company of the Year 2016 Award

• FTSE4Good Bursa Malaysia Index

• Malaysia Productivity & Innovation Class (MPIC) Membership

• Energy Management Gold Standard (EMGS) Certification

• Commercial Project Leadership Award

• Malaysian Construction Industry Excellence Award (MCIEA) – (Jambatan Sultan Abdul Halim Mu’adzam Shah - The Best Project Award)

• Malaysian Construction Industry Excellence Award (MCIEA) – (Kolej Yayasan UEM – Special Award IBS)

• 2016 Malaysian Construction Industry Excellence Award (MCIEA) for Cikampek-Palimanan Highway, Indonesia

• Property Insight Prestigious Development Awards 2015 (Top 10 Developer Award)

• Frost & Sullivan Excellence Awards (Builder of the Year Award)

• Malaysian Landscape Architecture Award (11 Mon’t Kiara & Beethoven, Symphony Hills)

• Asia Pacific Property Awards (Residensi Sefina Mon’t Kiara – Best Residential High-Rise Architecture Malaysia)

• All-Star Award Starproperty.my Awards (Top 10 Ranked Developers of the Year)

• Malaysia Landscape Architecture Award

a) Developer Category - Property Developer Awards in Landscape Planning and Development for Elevated Gardens @Mozart of Symphony Hills, Cyberjaya

b) Developer Category - Property Developer Awards in Landscape Planning and Development for Opera House Clubhouse of Symphony Hills, Cyberjaya

By Institute of Landscape Malaysia

• FIABCI World Prix D’Excellence Awards 2016 (World Silver Winner for High Rise Residential Category)

• QLASSIC Excellent Award 2015-2016

• The Edge Malaysia’s Property Excellence Award (Top 10 Property Developers Award)

28 UEM GROUP BERHAD


DATO’ IZZADDIN IDRISGroup Managing Director/Chief Executive Officer (Group MD/CEO)

MESSAGE FROM THE GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER

What is interesting, particularly with the advent of social media, is that such questions can be both inquisitive and rhetorical at the same time, and in such an impassioned environment, it is easy for the message to get lost. I am thus pleased to have the opportunity to share with you here some of my thoughts on the matter – what we are doing and the way forward for UEM Group, all of which are related to Sustainability and are reflected in this Report.

As we celebrate our 50th Anniversary in 2016, we highlighted to our stakeholders that this milestone is significant as it provides us with an opportunity to

celebrate the past but more importantly it allows us to commit to the future. Our unwavering commitment remains – to connect families and friends; to drive growth, business and economies; and ultimately, to embrace diversity and foster unity.

For UEM Group of Companies, the End has always been the Beginning. By this, I mean from the day we were incorporated back in 1966, we focused on helping build the nation and we do so optimally utilising the nation’s resources, both natural and human, to create a better future for generations to come.

In the past, every time I meet someone new, they often asked what it is that UEM Group does. Over the years, as the Company becomes more prominent and public awareness of UEM Group grew, the questions have expanded to, “are you environmentally sustainable and why do people work at UEM Group of Companies”, and my favourite, “what are you doing to ensure a sustainable future for Malaysia?”

29UEM GROUP BERHAD


UEM Group of Companies has actively continued to protect the environment by implementing measures that tackle climate change and improving resource productivity in its business activities. In order to enhance our sustainable environmental management which requires us to make our business growth compatible with environmental conservation, we are actively developing an environmentally-oriented business. We support the Malaysian Carbon R e d u c t i o n a n d E n v i r o n m e n t a l Sustainability Tool (MyCREST) which guides, assists, quantifies and reduces the environmental and emissions impact of built environments.

As the world changes, so too the expectations of our industries, stakeholders and the communities at large. So today – far from when construction, agriculture and commodities that were once the unquestioned lifeblood of our nation – it is now imperative that not only do we harness and deliver products and services in these industries but we do so humanely, in every sense of the way.

We have for example established major initiatives toward sustainable growth and management including end-to-end digital transformation, strategic partnerships and incorporating advances in human development. In October 2016, UEM Group set the IT industry buzzing when we announced a RM150 million commitment to develop an integrated Enterprise Resource Planning (ERP) cloud solution, in partnership with industry leaders such as Tech Mahindra, Oracle, PwC and Ernst & Young, to drive and facilitate increased efficiency and scalability throughout UEM Group of Companies.

Our human resource has always and will continue to be our greatest asset. No aspect of performance is more important


than the health and safety of our people. I am pleased to witness a decrease in total recordable injury rate of 27% in 2016 compared to previous year. Our goal is zero incidents and injuries, and we take our responsibility of keeping our personnel, community and the environment safe seriously. We will maintain this strong focus in the future.

Sustainable Education, Community Building and Value Creation continue to form the cornerstone of UEM Group’s Corporate Responsibility initiatives. In 2015 and 2016, UEM Group of Companies spent a total of RM16.30 million and RM23.20 million respectively on developing local communities.

The programmes which took place within UEM Group of Companies during these two

years include Education initiatives such as PINTAR School Adoption Programme. These include flagship activities such as Motivational and Remedial Classes as well as non-flagship initiatives such as Exam Clinics, Financial Literacy Workshop for post UPSR students, and Teachers Workshop.

Our other education-focused initiatives include Tuition Programmes for a total of 1,000 students in 2015 and 2016; Back-to-School Programme where more than 27,700 students from across Peninsular Malaysia received brand new bags, uniforms and stationeries to start the new year in school; as well as other activities including Hygiene Care Hey Day, PINTAR Al-Quran, scholarships by Yayasan UEM, and recognition of student’s achievements under the UEM Medal Award.

30 UEM GROUP BERHAD


We fully support our community and our UEM ALERT volunteers are ready to provide a helping hand wherever and whenever – we jumped into action when unprecedented flooding hit Kelantan, Perak and Pahang in 2015, providing basic provisions and assistance to flood victims. In 2016, we expanded our contribution by signing a Memorandum of Understanding with Ministry of Works to build 58 homes for some of the flood victims living in Kuala Krai, Kelantan (as we published this Report, construction have completed and families have moved in to their new homes).

While we continue to receive host of accolades and global recognition for both products and services such as the FIABCI World Prix d’Excellence Awards 2016; Malaysian Construction Industry Excellence Award 2016; Frost & Sullivan’s Excellence Award 2016; and 2015 Forbes Asia’s “Best Under A Billion” Award, nothing gives us more satisfaction than seeing a safe, productive workforce, knowing that our students have scored straight As and to witness the smiling faces of our community.

The commitment to undertake all of this extends from the Board of Directors and myself as well as each personnel of


UEM Group of Companies as we work together to address commercial realities and meeting our communal as well as national responsibilities. It is, in many ways, inherent in all that we do.

In conjunction with our 50th Anniversary, we reflect on five decades of growing, learning and building the country together. We have been through many challenges and recorded many achievements to help build this great nation of ours, and we will continue to do so. There is no better way to define a company’s commitment to sustainability and longevity than to contribute to the greater national and global society for years to come.

31UEM GROUP BERHAD


Creating a culture of excellence and competitiveness and nurturing a knowledgeable society through the continuous development of stakeholders.

Continuous improvement of

health and safety practices to meet

global standards and best practices in the workplace, project sites and operating

locations.

Adding value to our stakeholders

by focusing on innovation and

operational improvements that

strengthen our ability to deliver profitable

and long-lasting growth.

Reducing and managing our

operational impact on the environment

in four key areas of energy &

climate, materials, ecosystem and local

communities.

Operating responsibly as a

community member through positive contributions to

improving the quality of life and making a difference to society

and the nation.

Education & Human Capital Development

Corporate Community Development

Green Environment

Health & Safety

Value Creation

HO

W W

E D

ELIV

ER

VALU

ES

FOCUS AREAS

Sustainability is a deliberate choice for the future and a commitment to building a better world. Sustainability is part of who we are and what we do each and every day. Progress involves a balance of environmental stewardship, social responsibility and economic growth and we believe a commitment to these areas supports the enduring success of our stakeholders.

Sustainability Governance

Sustainability is central to how we grow as the country’s leading engineering-based infrastructure and services group. Adding sustainable value is the focus of our sustainable development strategy which concentrates on Bursa Malaysia’s four pillars of sustainability: governance, economic, environmental and social. Each pillar houses the values we commit to as a business in order to:

• Manage a competitive and economically sustainable company

• Deliver innovative solutions to meet stakeholders’ needs• Help them to achieve their goals.

OUR SUSTAINABILITY FOCUS AREAS

OUR SUSTAINABILITY COMMITMENT

We support all sustainability measures at both the Group and operating company level. Each Operating Company has established its own policies and procedures according to its nature of business.

Integrating sustainability into all areas of business is key. Representatives from each Operating Company meet regularly to ensure sustainability is considered and integrated throughout the Group.

32 UEM GROUP BERHAD


3 Guarantee a healthy and safe working environment.

Prevention in terms of health and safety prioritised by the Group.

• Provide a safe and healthy environment that safeguards employees’ health

• Reinforce the safety of each employee in the workplace

4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Good quality education is the right of all children, youths and adults, not the privileged few.

• In 2015 and 2016, UEM Group of Companies invested a minimum of RM12.01 million in enhancing education through various projects including the PINTAR School Adoption Programme, UEM English Literacy Programme, Tuition Programme, Yayasan Amir Trust Schools and the Back-to-School Programme.

• These programmes ensure that teachers, peers, communities, curricula and learning resources equip students with the relevant skills and competencies for 21st century employment.

4 and 8 Encourage the professional development and commitment of each employee.

The ability to attract and gain loyalty is a major factor in our performance. Skills and career development have been prioritised and employees’ performance and diversity are respected.

• Identify and develop personal skills to facilitate each employee’s career growth

• Empower employees so they can take control of their career plans and decision-making processes

5 and 10 Guarantee respect for diversity, human rights and fundamental social rights within the Group.

UEM Group of Companies highly values social cohesion and stability, respects diversity and equal opportunities while fighting discrimination.

• Encourage two-way dialogue between management and employees

• Promote a culture of inclusivity and diversity

7 and 13 Combat climate change through affordable and clean energy.

According to the latest IPCC report, worldwide greenhouse gas emissions must decrease by 70% by 2050 for global warming to be within +2 °C.

• Improve the energy efficiency of our facilities• Increase the production and use of renewable or alternative

energy

9, 11 and 17 Build new models for relations and value creation with our stakeholders.

UEM Group of Companies proposes solutions that cut across regulatory, social and environmental issues to improve clients’ performance. We interact with key players to innovate and build new initiatives that create shared value.

• Establish responsible relationships with our stakeholders• Provide solutions that are based on a circular economy and

shared performance principles

11 and 17 Contribute to local development.

We contribute to the dynamics of local development through our strong roots in local management with an in-depth knowledge of the areas where it operates.

• Contribute to the resilience of cities and local areas• Offer employment and skills development opportunities to

local communities• Deliver a positive impact on our local development activities

14 and 15 Conserve and restore biodiversity.

UEM Group strives to not only reduce the environmental footprint of its activities and those of its Operating Companies, but also foster favourable conditions for the preservation and restoration of species and their habitats.

• Raise awareness, involve more people internally and externally, and promote collaborative initiatives with local players


Sustainability Policy

At UEM Group of Companies, sustainability is more than merely a trend, report or statement. It is stewardship – stewardship of the environment, stewardship of our economic and fiscal results, and stewardship of the communities in which we live and work.

As a diverse group of four core businesses, developing a group-wide strategy is challenging. Over the past years, UEM Group of Companies has been advancing its sustainability journey, primarily on a company-by-company basis. UEM Group’s vision and mission and code of ethics are used as a guide without prescribing specific objectives, goals or targets. Each company developed its own plans with group-level corporate sustainability leadership driving communications and knowledge sharing between companies.

UEM Group developed a Sustainability Policy in 2011 to inculcate a philosophy of sustainable development into the activities of UEM Group and its Operating Companies. Effective 2017 we have streamlined the Sustainability Policies within UEM Group of Companies to ensure harmony in approach and execution throughout our activities.

Our Commitment to the United Nations Sustainable Development Goals

GOAL OUR COMMITMENT OUR STANCE OUR ACTION

33UEM GROUP BERHAD


3 Guarantee a healthy and safe working environment.

Prevention in terms of health and safety prioritised by the Group.

• Provide a safe and healthy environment that safeguards employees’ health

• Reinforce the safety of each employee in the workplace

4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Good quality education is the right of all children, youths and adults, not the privileged few.

• In 2015 and 2016, UEM Group of Companies invested a minimum of RM12.01 million in enhancing education through various projects including the PINTAR School Adoption Programme, UEM English Literacy Programme, Tuition Programme, Yayasan Amir Trust Schools and the Back-to-School Programme.

• These programmes ensure that teachers, peers, communities, curricula and learning resources equip students with the relevant skills and competencies for 21st century employment.

4 and 8 Encourage the professional development and commitment of each employee.

The ability to attract and gain loyalty is a major factor in our performance. Skills and career development have been prioritised and employees’ performance and diversity are respected.

• Identify and develop personal skills to facilitate each employee’s career growth

• Empower employees so they can take control of their career plans and decision-making processes

5 and 10 Guarantee respect for diversity, human rights and fundamental social rights within the Group.

UEM Group of Companies highly values social cohesion and stability, respects diversity and equal opportunities while fighting discrimination.

• Encourage two-way dialogue between management and employees

• Promote a culture of inclusivity and diversity

7 and 13 Combat climate change through affordable and clean energy.

According to the latest IPCC report, worldwide greenhouse gas emissions must decrease by 70% by 2050 for global warming to be within +2 °C.

• Improve the energy efficiency of our facilities• Increase the production and use of renewable or alternative

energy

9, 11 and 17 Build new models for relations and value creation with our stakeholders.

UEM Group of Companies proposes solutions that cut across regulatory, social and environmental issues to improve clients’ performance. We interact with key players to innovate and build new initiatives that create shared value.

• Establish responsible relationships with our stakeholders• Provide solutions that are based on a circular economy and

shared performance principles

11 and 17 Contribute to local development.

We contribute to the dynamics of local development through our strong roots in local management with an in-depth knowledge of the areas where it operates.

• Contribute to the resilience of cities and local areas• Offer employment and skills development opportunities to

local communities• Deliver a positive impact on our local development activities

14 and 15 Conserve and restore biodiversity.

UEM Group strives to not only reduce the environmental footprint of its activities and those of its Operating Companies, but also foster favourable conditions for the preservation and restoration of species and their habitats.

• Raise awareness, involve more people internally and externally, and promote collaborative initiatives with local players


GOAL OUR COMMITMENT OUR STANCE OUR ACTION

34 UEM GROUP BERHAD


Engagement with stakeholders is a key component of UEM Group’s sustainability strategy. Stakeholder engagement is managed by various Operating Companies each responsible for addressing concerns relevant to their respective operations.

Stakeholders are regarded as all individuals, institutions and organisations that have a direct or indirect impact on the activities of UEM Group of Companies or are directly or indirectly affected by these activities.

UEM Group of Companies operates in several countries and employs more than 21,000 employees. Due to the nature of our diverse business offering, we have a broad and complex range of stakeholders. Effective stakeholder engagement is essential for good corporate governance and one of the core principles driving sustainability.

STAKEHOLDERS COMMUNICATION MECHANISM

Shareholders • Investor presentations• Financial reporting• Corporate website• Investor meetings and presentations

• Analyst meetings• Annual General Meetings (AGM)• Extraordinary General Meetings (EGM)• Annual Report

Employees • Publications: Sustainability Reports, press releases and corporate website

• Engagement sessions• Social activities and clubs

• Employee engagement survey• Events and celebrations• Social media• Emails and Intranet

Financiers and Fund Managers • Analyst briefings• Financial performance results

• Website• Sustainability Reports

Authorities• Federal and State Governments

Ministries and Agencies

• Compliance reports• Interviews and meetings• Conferences

Customers and Clients • Publications: Sustainability Reports, press releases and corporate website• Meetings• Events and celebrations

Business Partners • Publications: Sustainability Reports, press releases and corporate website• Meetings

Vendors and Suppliers • Vendor performance reviews• Vendor perception surveys• Vendor Development Programme

• Vendor registration• Vendor conferences and workshops

Community Members• Local communities• Community partners• NGOs

• Social events• Sponsorships and donations• Social media• Corporate website

• Press releases• Sustainability Reports

Media • Media briefings• Events and road shows• Corporate website and publications

• Press releases• Advertorial & Advertisements

OUR APPROACH TO STAKEHOLDER ENGAGEMENT

We engage with our many stakeholder groups in various formal and informal settings across the entire UEM Group of Companies. Specific communication mechanisms and practices that increase the participation of stakeholders in decision-making mechanisms are effectively employed for all stakeholder groups and practices.

35UEM GROUP BERHAD


2015-2016 EVENT HIGHLIGHTS

35UEM GROUP BERHAD


2015JAN MAR APR

Post-Flood Cleanup– Machang, Kelantan

UEM Group visit to The New Straits Times Press (M) Berhad (NSTP) – Balai Berita Bangsar, Kuala Lumpur

Inaugural UEM Group Lecture Series with Dato’ Seri Robaayah Zambahari, Senior Consultant Cardiologist, National Heart Institute – Mercu UEM, Kuala Lumpur

22 26 2

MAY JUN

Health, Safety, Security & Environment (HSSE) Practitioners Workshop – Mercu UEM, Kuala Lumpur

UELP Graduation & Adoption of PINTAR School Programme – Mercu UEM, Kuala Lumpur

12 4

GLC Open Day 2015– KL Convention Centre, Kuala Lumpur

Giant Jalur Gemilang – Mercu UEM, Kuala Lumpur

We Care We Share 2015 – Mercu UEM, Kuala Lumpur

AUG23 247 9

36 UEM GROUP BERHAD



36 UEM GROUP BERHAD


2015 2016JAN

Back-to-School Programme– Mersing, Johor

OCT

UEM Group Inter-Department Bowling Tournament– NU Sentral, Kuala Lumpur

29

SEP

Rail Business Asia – KL Convention Centre, Kuala Lumpur

2 17

JUN

KYUEM Awards Day 2016– Lembah Beringin, Selangor

NOV

World Islamic Economic Forum 2015– Kuala Lumpur

3 15

MAR

MAR

Launch of UEM Group 50th Anniversary – Mercu UEM, Kuala Lumpur

UEM Group – University of Malaya MoU Signing Ceremony– University of Malaya, Kuala Lumpur

UEM Group Lecture Series - Dato’ Sri Nazir Razak, Chairman of CIMB Group Holdings Berhad - Mercu UEM, Kuala Lumpur

10

1

APR1

37UEM GROUP BERHAD



37UEM GROUP BERHAD


AUG

UEM Group Lecture Series - Dato’ Sri Shazalli Ramly, Managing Director/Group Chief Executive Officer, Telekom Malaysia Berhad – Mercu UEM, Kuala Lumpur

UEM Group SL1M Open Day 2016 – Mercu UEM, Kuala Lumpur

18 194

Project Enterprise: Digital Revolution Signing Ceremony– Mercu UEM, Kuala Lumpur

Aidiladha Get-Together with Residents of Pusat Jagaan Al-Fikrah – Kajang, Selangor

#uem50 CSR Gotong-royong, – Merlimau, Melaka

OCT05 08

UEM Group Scholarship 2016 – Mercu UEM, Kuala Lumpur

UEM Group Durian Party 2016 – Mercu UEM, Kuala Lumpur

CIDB MCIEA Awards 2016 – Kuala Lumpur

SEP06 09 23

38 UEM GROUP BERHAD



38 UEM GROUP BERHAD


Majlis Penyerahan Rumah Kekal Mangsa Banjir Negeri Kelantan– Kuala Lumpur

UEM Group PINTAR Schools – Teachers Programme– Hotel Sentral, Kuala Lumpur

NOV25 29

OCT

#uem50 CSR Sekolah Agama Sri Bertam– Batu Pahat, Johor

UEM Group Lecture Series -Datuk Mohamed Faroz Mohamed, Managing Director of Jakel Group of Companies– Mercu UEM, Kuala Lumpur

14 18

Back-to-School Programme– SK Kg Batu, Kuala Lumpur

Hygiene Care Hey Day, SK Telok Gadong, – Klang, Selangor

NOV15 18

2016

39UEM GROUP BERHAD



39UEM GROUP BERHAD


UEM Group Deepavali 2016 Inter-Company Kolam Competition – Menara UEM, Kuala Lumpur

#uem50 CSR – Kuala Selangor, Selangor

2620

Year-end Staff Gathering – Mercu UEM, Kuala Lumpur

UEM Group – University Teknologi PETRONAS MoU Signing Ceremony – Mercu UEM, Kuala Lumpur

DEC01 14

UEM Award Ceremony – Mercu UEM, Kuala Lumpur

Back-to-School Programme– SK Padang Temu, Melaka

Back-to-School Programme– SK Pantai Kundur, Melaka

23 24

40 UEM GROUP BERHAD


UEM Group of Companies conducted a materiality review to identify the most material issues. The review is aligned with the Global Reporting Initiative (GRI) G4 Reporting Principles and Standard Disclosures.

Identifying Material Issues

UEM Group of Companies’ sustainability strategies were developed and strengthened by conducting a materiality assessment through which all Operating Companies defined issues of relevance to stakeholders and the businesses. The process began by capturing a broad scope of issues that were relevant to each industry and Operating Company. Those topics were then filtered to produce a short list of material issues.

Shareholders Employees Fund Managers Business PartnersCustomers and Clients Suppliers

Federal and State Governments

Ministries and Agencies

Local Communities

Media NGOs

It is important that UEM Group of Companies’ sustainability strategy and reporting reflects the issues that are most important to the Group and its stakeholders, and which have the greatest impact on society, the planet and the communities we work with.

We commissioned an external consultant to conduct this comprehensive study in the last quarter of 2016. An impartial external party was chosen to secure the anonymity of the respondents. A total of 222 responses were obtained in the study.

MATERIALITY

Stakeholder Groups That

Took Part in the Materiality Study

41UEM GROUP BERHAD


Sustainability Areas Assessed in the Materiality Study

Economic and business performance, sustainable procurement, local hiring, nation building and developing national infrastructure

GHG emissions & climate change energy, water, biodiversity, environmental impact from transportation

Respondents were asked to select criteria deemed material to their chosen Operating Company.

A natural skew was discovered in the results as each stakeholder group was not represented equally. Unsurprisingly, the most responses were received from employees; fewest were from partners.

An average score was calculated for all areas within each stakeholder group and division to rectify the sample imbalance. An average rating from all stakeholder groups was then obtained.

Members of the Board of Directors were also asked to complete a similar survey. Their views represented each Operating Company within the Group.

MATERIALITY

ECONOMIC

ENVIRONMENT

SOCIAL

• Labour Practices and Decent Work Safety and health, diversity and inclusivity, career development, recruiting and retaining,

remuneration and benefits, employee engagement and satisfaction

• Human Rights Child and compulsory labour, non-discrimination, unions and employee relations

• Society Community engagement, bribery and corruption, preventing anti-competition, benefiting local

communities, employee volunteerism and supporting charities

• Product Responsibility Customer satisfaction, customer privacy, public safety, quality management and responsible

marketing

42 UEM GROUP BERHAD


30

1

2

3

4

6

7

814

21

31 32

29

28

27

20

13

24

1825

23 26

22

17

1216

11

15

10

9

19

5

IMPORTANCE TO UEM GROUP OF COMPANIES

REL

EVA

NCE

TO

STA

KEH

OLD

ERS

1. Employee volunteerism

2. Local hiring

3. Wider community benefit

4. Green building

5. Anti-competition

6. Responsible sourcing

7. Nation building

8. Local communitity engagement

9. Sustainable procurement & supplier assessment

10. Biodiversity

11. Environmental impact from transportation

12. Employer/employee relations

13. Child & compulsory labour

14. Remuneration and benefits

15. GHG emissions & climate change

16. Diversity & inclusivity performance

17. Employee engagement & satisfaction

18. Waste

19. Training and career development

20. Responsible marketing

21. Customer privacy

22. Discrimination

23. Water

24 Stakeholder engagement

25. Energy

26. Recruiting/retaining employees

27. Economic & business performance

28. Quality

29. Customer feedback/satisfaction

30. Public safety

31. Corruption

32. OSH

The Results

The results of the analysis were then used to develop a materiality matrix, with the level of importance to UEM Group of Companies plotted along the X axis and importance to stakeholders on the Y axis. The matrix is presented in the following diagram.

MATERIALITY

43UEM GROUP BERHAD


UEM Group’s Board of Directors recognises the value of maintaining strong corporate governance at UEM Group and across its Operating Companies. This practice is essential in protecting business integrity and delivering sustainable long-term stakeholder value.We strive to adopt good governance, which guides us in managing sustainability and fulfilling our corporate responsibility effectively and conscientiously. The Board and its respective committees discuss performance and implement plans based on our strategic sustainable efforts.

The Operating Companies are responsible for driving sustainable practices across the Group’s core businesses. This ongoing commitment reflects the importance of sustainability and the fundamental role it plays in our business.

UEM Group’s Management Committee is committed to best practices, focusing on overall strategic objectives, risk management, code of conduct and the governance of rewards and remuneration. The Board and shareholders ensure that UEM Group is led in the right direction through transparency, accountability and long-term stability. The Board aims to continuously enhance our corporate governance to ensure compliance and relevance with industry best practices.

BOARD COMPOSITION

The Board of UEM Group is chaired by a Non-Independent Non-Executive Chairman. It comprises three Independent Non-Executive Directors, with a total of nine members as at 31 December 2016, to ensure a balance of power and authority on the Board.

Please refer to UEM Group’s website www.uem.com.my for the complete profiles of all Board members.

A number of the Board members also sit on the Boards of UEM Group of Companies to reflect our Management’s representation across our businesses and operations.

Their representations in the respective Operating Companies ensure that good corporate governance practices are observed and consistently practised across the Board.

UEM Group Berhad’s Board of Directors PLUS PEIB UEM Sunrise

UEM Builders

CIMA UEM Edgenta

OPUS

Tan Sri Dr Ir Ahmad Tajuddin Ali, FASc, P. Eng

Dato’ Noorazman Abd Aziz

Tan Sri Dato’ Ir Omar Ibrahim

Lim Tau Kien

Dato’ Izzaddin Idris

Abdul Kadir Md Kassim

Zaiviji Ismail Abdullah

Wong Shu Hsien

Dato’ Mohamed Nasri Sallehuddin

CORPORATE GOVERNANCE

44 UEM GROUP BERHAD


Responsibilities of UEM Group’s Board

The Board provides stewardship in UEM Group’s strategic direction and influences operations to maximise shareholder value. The Board’s principal responsibilities are as follows:

• Reviewing and adopting strategic and financial plans for UEM Group.

• Overseeing UEM Group’s business conduct to evaluate and review proper business management.

• Identifying principal risks and ensuring the implementation of appropriate systems in managing these risks.

• Overseeing succession planning, which includes key management appointments, training, compensation, retention and replacement.

• Reviewing the adequacy and integrity of UEM Group’s internal control systems and management information systems to ensure compliance with applicable laws, regulations, rules, directives and guidelines.

• Formalising and reviewing performance of key sustainability initiatives and recommending improvements in the aspects of environmental, ethical, social and governance of the business.

Access to Information and Advice

The Directors have full and unrestricted access to all information pertaining to UEM Group’s business affairs, whether as a full Board member or in their individual capacity. This enables them to discharge their duties effectively. There are matters specifically reserved at the Board’s discretion, as defined in the Company’s Discretionary Authority Limit (DAL) to ensure that the direction and control of UEM Group is firmly in place.

The Board is furnished with an agenda and a set of papers is delivered in advance prior to each Board meeting for the Directors to review, evaluate and discuss. The Board papers contain both quantitative and qualitative information, which include comprehensive management reports, minutes of meetings, proposal papers and supporting documents.

In discharging their duties, the Directors are assured of full and timely access to all relevant information pertaining to UEM Group. They may, if necessary, obtain independent professional advice from external consultants, with consent from the Chairman or Committee Chairman.

UEM Group Berhad’s Board of Directors 2015 2016

Tan Sri Dr Ir Ahmad Tajuddin Ali, FASc, P. Eng

30 32

Dato’ Noorazman Abd Aziz 4 5

Tan Sri Dato’ Ir Omar Ibrahim 3 3

Lim Tau Kien 6 9

Dato’ Izzaddin Idris 9 12

Abdul Kadir Md Kassim 1 6

Zaiviji Ismail Abdullah 3 4

Wong Shu Hsien 2 2

Dato’ Mohamed Nasri Sallehuddin - 3

Capacity Building

To enhance the Board’s skills and knowledge, UEM Group acknowledges that continuous capacity building is vital for our Board members to keep abreast of the latest in technological advancement, the economic landscape, regulatory compliance and management strategies.

All newly appointed Directors will undergo a formal induction programme provided by the Group MD/CEO and Key Management of UEM Group. All appointed Directors have attended relevant training programmes and seminars organised by various regulatory and professional bodies to further enhance their skills and capabilities.

Number of Training Sessions Attended

Nominations & Remuneration Committee

The Nominations & Remuneration Committee assists the Board in the nomination of new Directors and remuneration packages of Executive Directors and Key Management. A Framework of Policies based on which the Committee makes its recommendations to the Board has been established for the nomination of new Directors and remuneration of Executive Directors and Key Management.


45UEM GROUP BERHAD



The Committee is also responsible for reviewing and implementing evaluation procedures as well as reviewing proposals for the remuneration package of each member of UEM Group’s Committees, as and when instructed by the Board.

The Nominations & Remuneration Committee recommends to the Board the remuneration package of an Executive Director, while it is the responsibility of the Board to approve the recommendation with the Executive Director concerned abstaining from deliberating and voting on the same.

Audit Committee

The Audit Committee supports the Board’s oversight on UEM Group’s financial performance and reporting to fulfil its statutory and fiduciary responsibilities. This relates to internal controls, financial and accounting records, risk management, management information systems and policies as well as financial reporting practices, of UEM Group. The Audit Committee also reviews any related party transactions and conflict of interest situations that may arise within UEM Group.

The following are the main duties and responsibilities of the Audit Committee:

• Reviewing financial statements of UEM Group of Companies prior to approval by the Board.

• Overseeing UEM Group’s internal control structure to assure operational effectiveness and efficiency, reduce the risk of unreliable financial reporting, protect UEM Group’s assets from misappropriation and ensure legal and regulatory compliance.

• Assisting the Board in identifying high-impact risks in achieving UEM Group’s objectives and ensuring the implementation of appropriate measures to manage these risks.

• Deliberating major findings from investigations by internal audit and reviewing the extent to which the recommendations are implemented and the timeliness of the responses received.

• Recommending to the Board on the appointment and annual reappointment of external auditors and audit fees, taking into consideration the independence and objectivity of the external auditors and the cost effectiveness of the audit.

Risk Management Committee

The Risk Management Committee (RMC) of UEM Group comprises the Group MD/CEO as the Chairman and co-opted members from the Key Management team as appointed by the Chairman. The RMC at the Operating Company level is headed by the respective Company’s MD/CEO.

UEM Group’s RMC meets quarterly to, among others, review and recommend the risk management policies and procedures for the approval or acknowledgement of the Board; review on-going adequacy and effectiveness of the risk management process; ensure that the Board receives adequate and appropriate information for decision making and review; and commission – where required – special projects to investigate, develop or report on specific aspects of the risk management processes of UEM Group of Companies.

Risk Management

Business operations such as our cement production, clinical waste management, construction, and highway operations and maintenance are particularly sensitive from a safety and environmental perspective. Therefore, appropriate consideration of sustainability issues is an integral part of our risk assessment.

Our robust Risk Management Framework provides a consistent approach to identifying, evaluating, monitoring and managing risks and opportunities. Certain risks are identified as being a high priority for particular oversight by the Risk Committee, the Audit Committee and the Board. In 2016, these included business and financial resilience, cybersecurity and safety risks including those arising from working at height, highway operations, plant maintenance and waste handling. The health and safety of our people and contractors are prioritised as it is central to business success. We aim to improve this aspect by learning from our experiences and positioning our culture where our teams have an enhanced commitment and capability to manage risks that have the potential to cause harm.

As part of our relentless commitment to Health, Safety, Security and Environment (HSSE), we have also defined accountabilities in performance agreements or KPIs for certain Operating Companies. The Group HSSE department also undertakes group-wide reviews, which are formally communicated to the Group Board and Audit Committee in monthly reports.

46 UEM GROUP BERHAD


Environmental challenges that directly affect the Group’s response strategies include the availability of key resources such as energy and limestone. We identify opportunities for energy efficiency improvements including technologies for waste heat recovery, sourcing alternative energy to fossil fuels (coal) and recognising possibilities for product/process innovation and new competitive advantage. It is important to obtain a full risk and opportunity picture and create a market-sensitive organisation that promotes business growth. We are exposed to a range of regulatory developments and business conditions in geographical locations where we operate due to our nature of business. We seek to manage these risks through our relationships with governments and stakeholders, regular reviews of market conditions, our planning and investment processes, and our focus on meeting all applicable licenses and regulatory requirements.

Pursuing a responsible approach to business is essential for achieving long-term success. Our approach continues to provide an appropriate balance between economic and environmental sustainability.

GOVERNING PRACTICES

UEM Group’s Code of Conduct sets out the appropriate conduct required to improve governance standards to set a benchmark for ethical behaviour based on trustworthiness, social responsibility and accountability. Our directors and employees are expected to conduct themselves ethically and professionally at all times to protect and advance UEM Group’s reputation.

UEM Group’s governing practices are guided by the following:

• Code of Conduct• Whistle Blower Policy• UEM Group Berhad Privacy Policy• Group-wide Social Media Policy• Donations & Sponsorships• No Gifts Policy

Code of Conduct

Our Code of Conduct includes guidance on disclosing conflicts of interest, maintaining confidentiality, our ‘no gifts’ policy and practices relating to entertainment, personal solicitation and graft.

Ethical Business Conduct

Corporate Integrity

UEM Group adheres to the highest standards of conduct in managing its business and serving its stakeholders. We are committed to acting with integrity at all times when dealing with our customers, employees, shareholders and society. This guides everything we do – the way we serve our clients and our work that helps them build better businesses.

Maintaining the highest ethical standards is critical. All employees follow not only those policies set forth by our clients but also UEM Group’s comprehensive, strictly-enforced core values and code of ethics.

On 4 May 2016, UEM Group hosted an Integrity Forum Day which aimed to raise awareness of business ethics. This is part of the Group’s implementation of the Corporate Integrity System (CIS). The forum was moderated by Mohd Nizam bin Mohd Ali, Director of the Malaysian Institute of Integrity. Members of the panel included Dato’ Izzaddin Idris, Group MD/CEO of UEM Group; Datuk Dr Anis Yusal Yusoff, President and CEO of the Malaysian Institute of Integrity; Dato’ Hajah Sutinah Sutan, Board member of the MRT Corp and Unni Krishnan Menon, Retainer Consultant for MIMOS, Malaysia’s forefront technology provider in Information and Communications Technology, Industrial Electronics Technology and Nano-Semiconductor Technology.

Our Stand Against Corruption

UEM Group engages with its stakeholders on the basis of transparency, continuity, mutual trust and honesty.

The Group rejects all forms of bribery, corruption or any form of unethical inducement and does not tolerate unethical behaviour from its employees and both current or prospective vendors. Disciplinary action is taken against any employee found to have breached these basic ethical requirements.

UEM Group is determined to conduct its business in an ethical and lawful manner. Our code of conduct, business integrity policy and anti-corruption compliance programme set the standard for our business practices and personal conduct.


47UEM GROUP BERHAD


The code builds trust and sets expectations while business integrity defines the principles for our business integrity work focusing on anti-corruption, risk and corporate responsibility. We also developed new procedures to help clarify and further strengthen our compliance framework.

Our Group-wide policies state clearly that all our business functions must comply with the legal obligations and laws in every industry in which we operate.

Whistle Blower Policy

The Whistle Blower Policy provides a mechanism for employees to raise genuine concerns about unethical behaviour, actual or suspected fraud or dishonesty, or violation of our Code of Conduct.

UEM Group and its Operating Companies are committed to the highest standards of professionalism, honesty, integrity and ethical behaviour in the conduct of business and operations. We need to be aware of all compliance violations especially breaches of the law or violations of our business principles.

Our Whistle Blower Policy or Whistle Blower Protection provides all stakeholders with a secure mechanism for reporting suspected compliance violations. Anyone with knowledge of any actual or potential improper conduct is encouraged to report it in good faith, without fear of reprisal.

Ethical concerns are investigated according to established procedures and stakeholders’ support helps us live up to our aspirations of being a responsible business partner.

UEM Group Privacy Policy

We introduced the UEM Group Berhad Privacy Policy in compliance with the provisions of the Personal Data Protection Act 2010 (PDPA). The policy details the types, uses and protection principles of personal information provided or made available to UEM Group.

Group-wide Social Media Policy

Our Group-wide Social Media Policy states the ‘dos and don’ts’ for employees using social media in their jobs or personal capacity to ensure that UEM Group’s reputation and interests are protected. This policy also governs their actions in relation to potential breaches of confidentiality and respect for the individuals and communities with whom they interact.


There were no reported incidences of fines or penalties in relation to anti-competitive behaviour, monopolistic practices and non-compliance issues during both years under review. There were also no complaints regarding breaches of customer privacy and losses of customer data received. UEM Group does not receive financial assistance from the Malaysian Government and has not accepted any financial contributions or aid from political parties in the country.

Donations & Sponsorship Policies and Guidelines

Our Donations & Sponsorship Policies and Guidelines provide management and staff with the overall direction to promote good sustainable practices in the execution of business activities. They also contain processes for a fair and just distribution of donations and sponsorships.

These guidelines also contain a written statement and parameters outlining UEM Group and its Operating Companies’ commitment to its objectives, targets and performance improvement.

No Gifts Policy

UEM Group is committed to upholding its “No Gifts or Favours Policy” as outlined in its Code of Conduct.

The policy, which includes festive gifts, reinforces our objective of conducting our operations with the highest possible standards of governance. It also inculcates the values of integrity and trustworthiness in our business dealings.

Festive gifts delivered or received are returned to the sender immediately.

48 UEM GROUP BERHAD


Advancing the nation through our roles in developing local infrastructure, providing employment and facilitating healthy economic growth.

Economic

Developing the local economy by prioritising local employment, sourcing local products and services as well as supporting Bumiputera entrepreneurs.

49UEM GROUP BERHAD


UEM Group of Companies operates in accordance with the basic principles of sustainable development. Our primary responsibility is defining our social and environmental spheres of influence alongside the economic impact they generate.

ECONOMIC

Sustainability is embedded into the decision-making, planning and investment processes across UEM Group of Companies to increase sustainable value for all shareholders. We act in a manner that fully respects the decisions made today will shape the future.

LOCAL HIRING

Employing locals and sourcing local products and services are important to both UEM Group of Companies and the wider community. Our success depends on local knowledge as we strive to improve local social and economic conditions.

Across UEM Group of Companies, we aim to make a positive difference to the communities where we operate and seek ways to assist them. The hiring and development of local people are prioritised and we work with local supply chains wherever possible. UEM Group took part in 25 local and overseas career fairs in 2015 and 2016. Through our presence in these career fairs, we hope to attract potential candidates and bring back younger generations who are pursuing their studies abroad. Over 99% of UEM Group of Companies’ employees are Malaysians as at 31 December 2016.

50 UEM GROUP BERHAD


ECONOMIC

BENEFITING LOCAL COMMUNITIES THROUGH OUR PRESENCE

UEM Group of Companies’ presence benefits communities in many ways and local development is a key part of being a sustainable company. Our operations provide local people with clear long-term benefits wherever they are based. We also develop local infrastructure, boost revenue and provide employment.

PLUS

PLUS highways are the longest expressways in Malaysia with a total length of over 1,200km running from Bukit Kayu Hitam in Kedah near the Malaysia-Thai border to Johor Bahru at the southern portion of Peninsular Malaysia. Since 1994, the North-South Expressway (NSE) has linked many major cities and towns in western Peninsular Malaysia, acting as a ‘backbone’ for the west coast of the peninsular. Economic development is boosted in all areas that the highway serves. As well as connecting the nation, the NSE offers an alternative to the federal route through various towns and cities.

PLUS’ existence supports the economy of local communities along its alignment by allowing them to sell their products in a healthy and sustainable market at its RSAs. Vendors who operate food outlets at the RSAs are supported in every aspect of their business. Vendor training courses are conducted that cover quality vendor-customer relationships and hygienic food preparation. These courses also introduce techniques that instill a sense of security in their patrons. The prices of goods are regulated to make the travel experience on the PLUS expressways more economical for customers. The rental cost of the stalls is also kept to a minimum.

Local suppliers also sell their products at PLUS’ RSAs and lay-bys and these include Orang Asli who sell forest products, herbs and traditional medicines such as wild honey and medicinal roots. Approximately 12,000 employment opportunities have been created in operations, maintenance and support services. RSAs and lay-bys have also become a stable source of income for residents in the neighbourhood contributing greatly to the socio-economic development of local communities. PLUS RSAs have created more than 5,500 employment opportunities and 800 local entrepreneurs.

UEM Sunrise

UEM Sunrise is an international lifestyle developer with core competencies in the areas of macro township development; high-rise residential, commercial, retail and integrated developments; as well as property management and project & construction services. Through township and property development business, we are unlocking potential economic growth.

UEM Sunrise prioritises and fast-tracks township infrastructure implementation plans while accelerating connectivity and access in these townships. These conditions correlate with economic development and create the necessary conditions for the spontaneous growth of a nation.

Embracing innovation and technology, UEM Sunrise strives to be the role model of an economically, socially and environmentally sustainable developer. With modern infrastructure and a cutting edge architectural masterplan, we continue to drive economic growth and transform Malaysia into an exciting centre of economic development in the region.

Approximately

12,000 employment opportunities have been created in operations, maintenance and support services.

51UEM GROUP BERHAD


ECONOMIC

CIMA

CIMA is one of the country’s most trusted manufacturer, producer and distributor of high quality cement, ready mixed concrete, aggregates and related products. Abreast with latest technical developments, CIMA maintains a strong lead through innovation. Today, CIMA’s innovative NS EcoCrete LH cement advances a new generation of green cement that meets the most stringent environmental demands. All CIMA products and processes are stringently tested and certified to meet or exceed quality standards. The Company takes pride in being certified with ISO 14001 and its investment in innovative, eco-efficient technologies has reduced its carbon footprint through the use of alternative fuel and raw materials in cement manufacturing.

UEM Edgenta

UEM Edgenta provides integrated facilities management and engineering contracting services for a range of assets and building types. From expressways and roads to urban transit, institutional to retail, offices to hospitals, educational institutions as well as residential properties and townships, UEM Edgenta’s services cover operations, maintenance (hard and soft services), rehabilitation and upgrading works at different phases of the asset life cycle.

UEM Edgenta also provides differentiated solutions which are Green, Smart and Connected for the built environment, such as energy-saving, pavement, geotechnical, structural and environmental solutions. Through its advanced and innovative technology offerings, asset owners and operators can achieve energy savings via efficient energy management and optimisation of the asset’s energy performance while lowering carbon footprint.

Memberships & Affiliations

UEM Group

• Malaysia-India Business Council (MIBC)• Malaysia South-South Association (MASSA)• Malaysia Industry-Government Group for High Technology (MIGHT)• Malaysia New Zealand Chamber of Commerce (MNZCC)• British Malaysian Chamber of Commerce (BMCC)

PLUS • Persatuan Syarikat- Syarikat Konsesi Lebuhraya Malaysia (PSKLM)• Road Engineering Association of Malaysia (REAM)• Malaysia Road Safety Council (MKJR)• Malaysian Institute of Road Safety Research (MIROS)• Intelligent Transport System Association of Malaysia (ITSAM)• Chartered Institution of Highways and Transportation (CIHT)

UEM Sunrise

• International Real Estate Federation (FIABCI) Malaysian Chapter• Real Estate and Housing Developer’s Association Malaysia (REHDA)• Federation of Public Listed Companies Berhad (FPLC)• Johor Sailing Association (JSA), Malaysia• The Yacht Harbour Association (TYHA), United Kingdom• Asia-Pacific Superyacht Association (APSA), Hong Kong

UEM Builders

• Construction Industry Development Board Malaysia (CIDB)• Standards and Industrial Research Institute of Malaysia (SIRIM)• National Institute for Occupational Safety and Health (NIOSH)• British Standards Institution (BSI)• Master Builders Association Malaysia (MBAM)

CIMA • Cement & Concrete Association of Malaysia (C&CA) • Federation of Malaysian Manufacturers (FMM)• National Ready-Mixed Concrete Association of Malaysia (NRMCA)• Master Builder Association Malaysia (MBAM)• Negeri Sembilan Industrial Liaison Centre (NSILC)• Malaysian Quarry Association (MQA)• Johor Quarry Association (JQA)• Negeri Sembilan Quarry Association (NSQA)

UEM Edgenta

• The Malaysian Asset & Project Management Association (MAPMA)• Board of Engineers Malaysia (BEM)• Malaysia Industry Advisory Committee for Politeknik Banting• Road Engineering Association of Malaysia (REAM)

CONTRIBUTION TO THE INDUSTRYUEM Group of Companies is committed in contributing to the economic and institutional development of the industries in which it operates. All Operating Companies aspire to facilitate economic growth by playing an active role in these industries through memberships in associations.

UEM Group of Companies’ representatives engage regularly with industry partners, contributing their expertise in discussions relevant to their respective fields. We advance our industries by consulting with other industry group members and learning from each other through brainstorming.

52 UEM GROUP BERHAD


ECONOMIC

ADVANCING THE NATION

Since 1966, UEM Group has been connecting communities and uniting loved ones by realising Malaysia’s infrastructure vision. As an engineering-based infrastructure and services conglomerate with an established track record in the country and the region. UEM Group of Companies continues to invest its expertise, resources and state-of-the-art technologies to deliver key infrastructure development projects for the public and private sectors.

Key Infrastructure Development Projects Delivered to the Public and Private Sectors

Expressways Bridges Buildings

Urban Transits Water Infrastructure Airports

Hospitals Township & Property Development

Asset & Facility Management Services

On 17 June 2015, UEM Group signed a Memorandum of Understanding (MoU) with the National University of Malaysia (UKM), to assist UKM in establishing the Health Technopolis at its medical and health campus where medical research and development can be carried out through collaboration between researchers and the corporate sector.

On 13 December 2016, UEM Group signed an MoU with Universiti Teknologi PETRONAS (UTP). This MoU allows both parties to explore potential cooperation and collaboration in corporate responsibility, research and development, graduate employability and student internships.

The MoU provides UTP students with opportunit ies for internships and employment within UEM Group. Top management and UTP lecturers delivered a cross-functional exercise across the two entities.

UEM Group also agreed to support UTP’s Socioeconomic Development for the Less Privileged Community Programme by pledging to donate RM50,000 for women empowerment. Specifically, the funds will be used to purchase raw materials for D’Aji Tailor sewing business in Kampung Aji, Perak and help in marketing, manpower planning and skills development. CIMA will also contribute 500 bags of cement to build a community and resource centre in Mukim Layang-Layang Kanan, Perak.Strategic Partnership in Boosting the Nation’s Academic Performance and

Employability

UEM Group has formed strategic alliances with major Malaysian academic institutions to develop the areas of education and research. These initiatives create an ecosystem for industries, academicians, researchers, managers and engineers to collaborate and accelerate growth through research and innovation.

53UEM GROUP BERHAD


ECONOMIC

Evolving the Nation’s Connectivity

UEM Group, UEM Edgenta and PLUS, through its subsidiary TERAS Teknologi Sdn Bhd, participated in the Rail Business Asia 2015 (RBA2015). Themed ‘Evolving Rail Industry in Asia: Sustainability, Connectivity and Safety’, the event was held from 2 to 4 September 2015 at the Kuala Lumpur Convention Centre.

RBA2015 was co-hosted by the Land Public Transport Commission (SPAD) and Construction Industry Development Board (CIDB). It is the region’s leading rail event where government authorities, asset owners, operators, consultants and solution providers discuss key updates and shape the Asian rail business.

Approximately 5,000 trade exhibitors and visitors took part in the event with various companies from China, Japan, Malaysia and Singapore attending. UEM Edgenta, through its subsidiary Opus, showcased its rail experiences and consulting concept for the rail sector while Teras demonstrated its automatic ticketing system technology.

David Starbucks, Head of Rail Design from Opus, was a key speaker and presented a paper titled ‘LRT Line Extension Projects – An Update on Progress’.

Affordable Housing Improves the Social Economy of the Rakyat

UEM Sunrise has sustained its commitment to providing affordable housing for 20 years. At this time, UEM Sunrise collaborated with Denia Development on Perumahan Rakyat 1Malaysia project (PR1MA). This project provided 201 units of affordable housing for middle-income families.

As part of its ongoing commitment to delivering affordable housing in Iskandar Puteri, UEM Sunrise launched 1,217 Denai Nusantara units on 29 January 2016, comprising 1,109 Rumah Mampu Milik Johor (RMMJ) and 108 single-storey shop lots. The estimated Gross Development Value (GDV) of this project was RM188.5 million.

Launched in stages, based on the guidelines of the Dasar Perumahan Rakyat Johor, UEM Sunrise will continue its efforts of building affordable homes in Iskandar Puteri to help the rakyat acquire their own homes. The construction of affordable homes will be subject to current demand and approval from the relevant authorities.

To date, UEM Sunrise has completed and handed over 3,824 affordable housing units in Taman Nusantara. 1,348 units are still under construction of which 1,003 are located in Nusantara Prima.

These initiatives are in line with the aspirations of the National Housing Department and the Johor State Government to provide the rakyat the opportunity to own homes.

SUSTAINABLE PROCUREMENT

Supply chain management in UEM Group of Companies covers both strategic and operational levels. Our supply chain organisations consist of thousands of employees across all locations.

UEM Group of Companies expects all suppliers to comply with the companies’ values, national laws and regulations. They must also meet company standards of health and safety, quality management, environment, ethics, anti-corruption and social responsibility. We strive to create shared value with communities by focusing on local sourcing, knowledge transfer and close dialogue with suppliers.

Audits were also conducted to verify information provided in the qualification process, screen for risks and confirm suppliers’ ability to meet our standards. Combined with a supplier performance evaluation, this information presents an accurate picture of supplier risks. Each year, we identify potential supplier risks and suppliers are only approved following an investigation and review. Our practice is not to work with customers and suppliers who breach the law or are unethical.

54 UEM GROUP BERHAD


Objectives of UEM Group’s BVDP

Support the Government’s aspiration to develop BCIC under the National Development Policy

Develop a proactive, resilient and competitive Bumiputera industry

Support the development of local capability using home grown skills

UEM Group and Majlis Amanah Rakyat (MARA) collaborated to help the Bumiputera community in support of the Putrajaya Bumiputera Empowerment Agenda (BEA). An MoU was signed between the two parties on 24 February 2015. UEM Group and MARA continue to run development programmes, provide technical guidance and technology, transfer knowledge as well as offering advice on quality control and service excellence.

As part of UEM Group’s partnership with MARA, it continues to explore potential cooperation on education, entrepreneurship, investment and management services.

UEM Group has awarded more than RM5 billion accumulated from 2011 to 2016 in contracts to Bumiputera companies in support of the Putrajaya BEA.

Our Performance in Developing the Nation’s Bumiputera Capabilities

Focus Areas KPI Initiative 2015 2016

Vendor Development Programme (VDP)

Number of new Bumiputera vendors enrolled under the UEM-VDP

20 19

Number of vendors in the VDP achieving an average minimum target score using Business Excellence (BE) - VDP Batch 1

7 20

Anchor Strategic Partner (ASP)

Number of new Bumiputera vendors enrolled under UEM-ASP

3 0

Contract carve-out

Contract value reserved for Bumiputera allocation (% of total value of contracts awarded)

28% 28%

Human Capital Number of Bumiputera beneficiaries that participated in the human capital development programme

419 631

Procurement spend

Total Bumiputera spend (% of total local procurement spend)

28% 27%

ECONOMIC

Developing Malaysia’s Bumiputera Entrepreneurs

In 2014, UEM Group launched its Bumiputera Vendor Development Programme (BVDP) to develop Bumiputera entrepreneurs in the Bumiputera Commercial and Industrial Community (BCIC). This programme was designed to allow entrepreneurs to develop their skills to enable them to produce and not merely act as agents or distributors.

55UEM GROUP BERHAD


The BVDP is also implemented across UEM Group of Companies. The numbers of Bumiputera vendors enrolled in the past two years are presented below.

BREAKDOWN OF BUMIPUTERA VENDORS ENROLLED UNDER

THE BVDP

UEM Sunrise

PLUS

UEM Builders

CIMA

UEM Edgenta

Integrating Social and Environmental Factors into Our Supply Chain

UEM Group of Companies incorporates social, safety, health and environmental aspects into its procurement process. Contractors must submit a Project Safety, Health & Environmental Compliance Plan (PSHECP) and Emergency Response Procedures (ERP). These documents outline training, monitoring, reporting procedures, compliance with statutory regulations, standards and Codes of Practice that must be implemented throughout the contract period. Environmental, safety and health factors are also included in supply-chain contract agreements.

Environmental and Social Requirements for UEM Group of Companies’ Suppliers, Contractors and Subcontractors

Compensation packages must comply with:

• The Worker’s Compensation (Foreign Workers Compensation Scheme) (Insurance) Order 1996; and/or

• The Social Security Insurance; and/or• Employer’s Liability Insurance; and/or• Any other insurance with statutory limits as required by Malaysian law.

Fair remuneration must be provided

• Remuneration must cover at least their living wage. Overtime must be paid to workers.

Valid permits to work• Must be issued before permanent or temporary workers can work in

accordance with Malaysian immigration and labour laws.

Social background

• Workers must be free from criminal record and drugs (which are detected through a urine test).

Workers must not be exposed to hazards or risks

• When carrying out work in addition to being supervised by our safety personnel on site.

Workers must not degrade the environment

• From potential pollution as far as is practicable and mitigate the potential environmental impact.

Reduce the impact of their operations

• Measured through emissions released, biodiversity impact, waste disposal, pollution and other environmental issues resulting from their operations.

Share UEM Group’s commitment to the environment

• UEM Group of Companies selects suppliers who conduct business in a similar way as the Group. Suppliers must work to reduce their consumption of resources including raw materials, energy and water throughout all aspects of the project.

ECONOMIC

5

4

20154

25

20165 5

-54

56 UEM GROUP BERHAD


Environment

Environmental Management System (EMS) across UEM Group of Companies which manages environmental impact

Implementation of green technologies which maximise operational efficiency and energy conservation

57UEM GROUP BERHAD


OBJECTIVES OF UEM GROUP OF COMPANIES’ ENVIRONMENTAL EFFORTS

Supporting companies’ growth and exceeding stakeholders’ increasing expectations for more sustainable and green products and services

Raising environmental awareness with stakeholders

Improving operational efficiency by lowering costs and reducing the environmental footprint

of operations and supply chain

UEM Group of Companies’ environmental commitment is an integral part of its strategy. Meeting the challenges of climate change requires us to act in a sustainable and responsible manner every day.

ENVIRONMENT

ENVIRONMENTAL MANAGEMENT SYSTEM

Company Coverage

PLUS • PLUS Headquarters• PLUS operations in the Southern, Central and Northern Regions

UEM Sunrise • Focusing on UEM Sunrise’s development services

UEM Builders • UEM Builders’ Headquarters in Petaling Jaya, Selangor

CIMA • Cement plant in Bahau, Negeri Sembilan• Cement plant in Bukit Ketri, Perlis

UEM Edgenta • Opus International (Malaysia) Berhad• Edgenta Mediserve Sdn Bhd (Headquarters and all sites, Kuala Ketil Laundry Plant, Kamunting

Laundry & Incinerator Plant and Edgenta Healthronics Sdn Bhd)• Edgenta PROPEL Berhad• Edgenta Environmental & Material Testing Sdn Bhd

58 UEM GROUP BERHAD


ENERGY AND EMISSION MANAGEMENT

Reducing the environmental impacts arising from our operations is a material responsibility for UEM Group. We determine the level of risk from the world’s common problem – climate change. Proactive solutions to mitigate these risks are developed to improve our operational performance. Energy conservation measures not only focus on offices but also include various operations sites across the country.

UEM Group of Companies believes it cannot manage what it does not measure and monitors its direct and indirect energy consumption. Direct energy is in the form of petrol for our company-owned vehicles and diesel for both these vehicles and generator sets.

675,000

670,000

665,000

660,000

655,000

650,000

645,000

Fuel

(litr

es)

Elec

tric

ity (M

wh)

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

3,635,156

2015 2016

3,364,183

7,860,940 8,185,260

Diesel Petrol Electricity

DIRECT AND INDIRECT ENERGY CONSUMPTION

669,048

ENVIRONMENT

Scheduling several out-of-office meetings

on the same day

Carpooling Minimising printing and encouraging dual-side

printing whenever possible

Using video conferencing to

minimise travelling between sites

Switching off lights and electrical appliances

when not in use

PLUS

PLUS aims to establish itself as the benchmark for other expressway operators. PLUS’ Environmental Management System manage, control and improve environmental performance and minimise harmful effects on the environment while providing excellent services to its customers.

General Daily Energy Conservation Efforts Being Practised Across UEM Group of Companies

In 2003, PLUS was certified with ISO 14001:1996. As part of the ISO requirements, expressway operations aspect and their impact on the environment are assessed and reviewed by the PLUS EMS Committee. Starting from 2016, PLUS’ Environmental performance was also assessed by the Malaysian Highway Authority via the established Green Highway Index.

654,296

59UEM GROUP BERHAD


Green Technologies Used by PLUS

Energy-saving lights on selected stretches

and interchanges

Street lighting dimming systems

Solar-powered energy sources

Motion sensors on lighting in all Persada Surau and toilet

Thematic design of RSAs with natural lighting

and ventilation systems

Inverted air-conditioning ventilation systems

Paperless initiatives including:• Electronic Toll Collection (ETC)

systems such as Touch ‘n Go, SmartTAG and PLUSTrack

• Electronic Toll Form (ETOF)• Receipt on Demand (ROD)

ENVIRONMENT

PLUS began implementing an Intelligent Transport System (ITS) along its expressways in 2002.

Network infrastructure

upgrade

Control centres upgrade

CCTV surveillance at mainlines

Variable message signage (VMS)

Automatic vehicle detection system

(AVDS)

Basic system integration

Components of the ITS

ITS gathers, organises, analyses, uses and shares information on transportation systems in response to recent traffic growth. PLUS’ interest in ITS arises from customers’ growing needs for better traffic management, travel information, emergency management and a safe environment.

PLUS employs systematic traffic management at toll plazas to reduce congestion and minimise the release of carbon dioxide and other harmful emissions.

60 UEM GROUP BERHAD


ENVIRONMENT

UEM Edgenta

UEM Edgenta’s Energy Management Systems cover 33 hospitals and deploy controls and data managers monitored by a command centre. This Command and Contact Centre (CnC), which has been fully operational since 29 August 2016, enables UEM Edgenta to monitor and control its energy consumption in real time. The CnC includes smart metering, energy monitoring and control, data gathering and preventive maintenance.

CnC optimises efficiency and performance through integrated automation systems for all buildings and projects under UEM Edgenta’s purview. The scope of work comprises energy management, remote monitoring with controls and building automation. It also allows predictive maintenance and strategic building management planning.

61UEM GROUP BERHAD


CLIMATE CHANGE AND CARBON FOOTPRINT MANAGEMENT

For years, we have focused on reducing our emissions, increasing energy efficiency in our operations across UEM Group of Companies, using lower-emission alternatives to traditional fossil fuels and promoting renewable energy.

CO2 levels are increasing and have a negative impact on the environment and we see the effects every day. Sea levels are rising, temperatures are increasing and more severe weather can be seen worldwide.

Scope Category Indicators Measured

Scope 1 Direct GHG emissions Fuel

Scope 2 Indirect GHG emissions Electricity

Scope 3 Other indirect GHG emissions Air travel

UEM Edgenta’s credibility in energy management was recently recognised when six government hospitals managed by the Edgenta Mediserve were awarded “One Star” for Energy Management Gold Standard (EMGS) Certificates under the ASEAN Energy Management Scheme (AEMAS):

• Hospital Sultanah Bahiyah, Alor Setar, Kedah• Hospital Sultan Abdul Halim, Sungai Petani, Kedah• Hospital Langkawi, Kedah• Hospital Batu Gajah, Perak• Hospital Kuala Kangsar, Perak• Hospital Parit Buntar, Perak

KFM Holdings Sdn Bhd, a subsidary of UEM Edgenta was also bestowed the “Commercial Project Leadership Award” for Bangunan Perdana Putra, Platinum Green Building Index (GBI) project by Malaysia Green Building Confederation.

Across UEM Group of Companies, we focus on initiatives that minimise our carbon footprint. For example, we encourage the use of our own conferencing solutions to reduce travel. This is significant as our operations are spread across the nation. We will continue to monitor our carbon emissions. This allows us to understand our emission trends and recognise the potential areas for reduction and improvement. Moving forward, we aim to set individual reduction targets for each operating company.

Our emissions accounting is based on the internationally recognised GHG Protocol established by the World Business Council for Sustainable Development (WBCSD) and World Research Institute (WRI). Emissions accounting is based on the GHG Protocol classification of direct and indirect emissions.

ENVIRONMENT

62 UEM GROUP BERHAD


Scope 1

All fuel purchases are monitored and recorded to calculate GHG emissions from fuel consumpt ion. Separate calculations have been performed for petrol and diesel. Diesel used by both gensets and company-owned vehicles has been included.

CO2 emissions from the consumption of fuel were derived from the emission factor published by the IPCC Guidelines for National Greenhouse Gas Inventories. CO

2 Em

issi

ons

(MT)

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

9,939 8,769

1,3663,268

6,221

8,356

29,150 29,384

7,619

9,063

2,4381,495

CO2 EMISSIONS (MT) FROM FUEL

Total

PLUS UEM Sunrise UEM Builders

CIMA UEM Edgenta

Scope 2

Electricity usage has been calculated from electricity bills. Electricity used by our offices and operations has been used in this calculation.

CO2 emissions from the use of electricity were derived using the emission factor published by the Malaysian Green Technology Corporation for the Peninsular Grid.

PLUS UEM Sunrise UEM Builders CIMA UEM Edgenta

2016: 488,362 (MT)2015: 495,764 (MT)

CO2 EMISSIONS (MT) FROM PURCHASED ELECTRICITY

80,2014,505

401,624

1,612420

1,979452

419,644

69,2754,414

ENVIRONMENT

2015

2015

2016

2016

63UEM GROUP BERHAD


NS EcoCrete LH

Scope 3

Air travel GHG emissions were calculated point to point including the number of employees on board, distance and flight class.

CO2 EMISSIONS (MT) FROM AIR TRAVEL

CO2 E

mis

sion

s (M

T)

2015 2016

473

472

471

470

469

468

474

470

473

Operating Company 2015 2016

Solid Waste Scheduled Waste Solid Waste Scheduled Waste

PLUS 3,602,040 11 3,602,040 13

UEM Sunrise 4,588,722 1,122 8,626,815 3,966

UEM Builders 1,733 2,650 1,348 2,767

CIMA 170,240 126,592 167,720 92,869

UEM Edgenta Data is currently unavailable. UEM Edgenta’s solid

waste disposal is based on scheduled trips per location

instead of volume

138,440 Data is currently unvailable. UEM Edgenta’s solid

waste disposal is based on scheduled trips per location

instead of volume

125,138

Total 8,362,735 268,815 12,397,923 224,753

ENVIRONMENT

WASTE MANAGEMENTEffective waste management is a vital component of environmental protection. UEM Group of Companies is committed to managing its waste footprint more effectively. Stringent management practices have been adopted throughout the Group to ensure waste from plants, project sites and offices is disposed of effectively. There are also measures to eliminate or contain spills.

UEM Group of Companies’ environmental action plan contains provisions for the proper management and hygienic disposal of waste generated. We always aim for on-time hygienic waste disposal.

The total waste disposed of by type in 2015 and 2016 across UEM Group of Companies is presented below.

Breakdown of Waste Disposed of by Operating Company (kg)

GREEN PRODUCTS

CIMA

CIMA invests in innovative, eco-efficient technologies such as the use of alternative fuels and raw materials in cement manufacturing. CIMA’s product, NS EcoCrete LH has been certified by SIRIM Malaysia and tested against strict eco products criteria.

64 UEM GROUP BERHAD


PLUS

PLUS supports RSA vendors in all aspects of their business. Attention is given to hygiene standards, food quality and competitive pricing.

PLUS a lso generates s ign i f i cant volumes of pavement milling waste. 476,800 m3 and 387,300 m3 of pavement milling waste were disposed of in 2015 and 2016 respectively.

CIMA

CIMA’s scheduled waste management is stringent and the scheduled waste is disposed of at least every 180 days or whenever 20 tonnes have been generated. CIMA recycles fly-ash generated by coal-fired power plants and the resulting products are eco-friendly with good resistance to a chemical attack. CIMA submits its scheduled waste inventory reports to the Department of Environment (DOE) on the second week of each following month. In 2015 and 2016, CIMA submitted all periodic environmental reports to the DOE.

UEM Edgenta

UEM Edgenta’s hazardous waste includes components that require special handling before disposal. Hazardous waste such as chemicals, oil and paint residue is disposed of by a government-approved waste management company. UEM Edgenta ensures that its hazardous waste disposal conforms to the statutory requirements.

Operating Company

2015 2016

PLUS 4,356,451 4,573,318

UEM Sunrise

66,122 73,036

UEM Builders

3,051 1,959

CIMA 848,893 600,053

UEM Edgenta

248,952 225,184

Total 5,523,469 5,473,550

WATER EFFICIENCY MANAGEMENTWater is essential to both our stakeholders and business operations. Our water stewardship strategy helps us understand and manage our water footprint and related risks more effectively.

Typically, our Operating Companies monitor the volume of water withdrawn using a flow meter. The volume is estimated if flow meters are unavailable at the withdrawal points.

Total water consumption at each Operating Company in 2015 and 2016 is presented below.

Water Consumption (m3) by Operating Company

PLUS

Currently, PLUS is implementing a rainwater harvesting system that collects water for landscaping and irrigation. Rainwater flows from the roof and downspouts to a storage tank. Rainwater harvesting delivers significant economic and environmentally-friendly benefits for PLUS, its lawn and garden and the local municipal water supply (SYABAS).

CIMA

Water is an integral component in concrete production and CIMA optimises its use of this valuable resource. CIMA collects discharge water in retention ponds throughout its facilities and this water is reused in manufacturing. At the Bahau Plant, water is pumped from the quarry pond and reused in cement mill operations, water spray systems and bulk lorry washing systems.

BIODIVERSITY

UEM Group of Companies understands that each species, no matter how small, plays an essential role in the ecosystem and that biodiversity is an important global issue. All Operating Companies strive to preserve biological diversity and the variety of life forms on earth through sustainable development strategies.

UEM Sunrise

The construction of the Regional Open Space in Iskandar Puteri – SIREH Park @Iskandar Puteri has begun and is scheduled to be opened to the public in early 2018. The public park will be the largest in Malaysia with approximately 343 acres of land being developed.

SIREH Park @Iskandar Puteri promotes the aesthetic appreciation of the planted areas and encourages outdoor activities. Through this initiative, UEM Sunrise aims to preserve as much existing vegetation, minimise slope cutting and maintain existing water bodies. The park will encompass three major focus areas namely Recreational, Educational Learning Experience Outside Classroom (LEOC) and Science and Conservation.

ENVIRONMENT

65UEM GROUP BERHAD


CIMA

CIMA’s operations can potentially affect habitats and species, particularly during land clearing for quarrying as well as air and water pollution. Operating and closing CIMA’s cement and aggregates sites can affect biodiversity and the health of ecosystems through habitat degradation, species disturbance, changes in groundwater levels, discharges to water bodies and dust emissions.

CIMA is committed to being a responsible steward of the land it manages. The Company conducts its operations in a sustainable manner to protect biodiversity within its operations and maximise its contribution to nature conservation.

CIMA began its reforestation and greening programme in 1997. The primary objectives are to beautify the environment surrounding CIMA’s facilities, and the use of trees as natural pollution control barriers against dust and noise generated from the cement manufacturing plant and adjacent quarry operations.

ENVIRONMENTAL INITIATIVES

UEM Green Squad

UEM Green Squad was introduced in 2014 to spearhead environmental initiatives and competition involving UEM Group employees. The overall champion walked away with the Evergreen Cup challenge trophy, RM1,500 worth of cash and other prizes.

Winners of the Evergreen Cup 2015

1

WINNER WITH

3,441 POINTS GROUP SECRETARIAL

2

SECOND PLACE WITH

2,863 POINTS GROUP ICT/PROHAWK

THIRD PLACE WITH

2,455 POINTS GROUP PROCUREMENT/EDS

3

ENVIRONMENT

With the tagline “Keeping it Evergreen”, several activities were hosted such as Switch Off, Bring Your Own Food Container and Green Your Office. In 2015, UEM Green Squad introduced a new initiative, Eco-Pledge, to encourage UEM Group personnel to make promises to the earth.

The formation of UEM Green Squad is in line with UEM Group’s initial sustainability initiatives, “Living Green”. This sustainable initiative reiterates environmental importance to employees and demonstrates how to manage environmental impacts by adopting good environmental practices. The environmental initiatives demonstrated by the UEM Green Squad helped UEM Group’s environmental protection strategy progress.

UEM Group Recycle Mania, organised under the Evergreen Cup 2015, collected a total of 18,107 kg of paper, plastic, glass, electronic waste, batteries and metal.

66 UEM GROUP BERHAD


Social

Collaborating with society though various initiatives that focus on community development, community care, community education and community contributions

Creating employee value by delivering an engaging experience that attracts talent while inspiring, developing and empowering our people

67UEM GROUP BERHAD


Through a collaborative approach, we work with communities to identify social needs and existing resources through which we can build our social investment. We partner with appropriate organisations to deliver community projects using a strong and consistent process to monitor progress and performance.

SOCIAL: SOCIETY

UEM Group is committed to facilitating the growth of economic and social development in all areas in which i t operates. The Group recognises the value of resources under the philosophy of “Concern to Social Responsibility”.

Given that communities are the most important components of society, caring for communities and societies are fundamental to UEM Group’s approach to sustainable development.

UEM Group of Companies plays an important role in developing economies and improving standards of living. As part of making a valuable contribution as community partners, we seek to build meaningful long-term relationships that respect local cultures and create lasting benefits.

SOCIAL

A clear direction for community projects has been set to ensure UEM Group:

• Makes the most meaningful response to community needs and expectations

• Adopts the highest levels of efficiency in project implementation

• Achieves its community objectives

68 UEM GROUP BERHAD


UEM Group’s Community Target

Enhancing and developing community and society capacities for secure and sustainable growth by leveraging on UEM Group’s competencies in various fields to engage with different facets of society and enhance their overall quality of life.

Community investment and engagement are more than just the right thing to do; they are also smart business. Our diverse group is only as strong as the local communities in which our employees and customers live and work. It is of mutual interest that we work with local communities to make meaningful contributions that improve their quality of life.

UEM Group’s community involvement is not simply donating money but extends to building partnerships and working with others to address the difficult challenges so many people are facing.

COMMUNITY DEVELOPMENT

UEM Group of Companies’ commitment to communities is supported by a methodology that promotes awareness, dialogue and collaboration while creating shared value for local stakeholders and business operations.

We have set ambitious targets to boost local socio-economic development such as volunteering and job creation. Employees are able to make a meaningful contribution in the communities surrounding our sites. Many are actively involved in community outreach initiatives that provide disaster relief, donations of medicine and basic necessities, gotong-royong and job creation.

Our presence and large workforce clearly affect our surroundings. We recognise our responsibility to the local communities in which we operate and contribute through local hiring, sourcing, and transferring knowledge and technology. We are as transparent as possible in our business conduct so that our impact can be easily measured.

UEM Group of Companies – UEM ALERT Volunteer Programme

Established in 2006, the UEM ALERT volunteering programme serves as a platform for employees to contribute their time, skills and efforts to the community. In addition to social, education and environmental-related activities. Through UEM ALERT, these volunteers will come forward to provide immediate post-disaster relief and rehabilitation assistance across Malaysia. As of 31 December 2016, there were 906 UEM ALERT volunteers.

Whenever the country is hit by natural disasters, UEM Group has consistently provided not just manpower assistance, but relief supplies and provisions to victims at flood relief centres. Our Operating Companies also work together to dispatch emergency relief in response to any crisis.

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69UEM GROUP BERHAD


Over the last decade, our country has experienced floods exceeding past averages. Malaysia faces two monsoon seasons: the Southwest Monsoon from late May to September and the Northeast Monsoon from October to March. These monsoons bring more rain resulting in regular flooding each year. During these times of crisis, UEM ALERT volunteers from across UEM Group of Companies come forward to help flood victims by providing post disaster relief and rehabilitation assistance.

UEM Group of Companies, through the UEM ALERT, came together to extend help to flood victims in the:

• Johor floods in 2007• Pahang floods in 2008• Kedah and Perlis floods in

2010• Johor, Pahang, Kelantan and

Terengganu floods in 2013• Kelantan floods in 2014• Kelantan, Perak and Pahang

floods in 2015

Manpower• 49 UEM ALERT volunteers from UEM Group, PLUS, UEM Sunrise, UEM

Builders, OPUS, CIMA and UEM Edgenta took part in flood relief efforts in Kelantan

• More than 150 UEM ALERT volunteers from UEM Group, PLUS and PROPEL distributed food to approximately 500 flood victims in Perak

• In collaboration with the Ministry of Works and Malaysian Highway Authority, more than 50 volunteers from PLUS, PROPEL and OPUS undertook post-flood clean-up operations at SK Paya Ara, SK Jenderak and SM Agama AL-Wosto in Temerloh, Pahang

Monetary• UEM Group donated RM2 million to the Kelantan Mosque Floods

Compassionate Fund to rebuild mosques and surau throughout Kelantan• UEM Group and PLUS contributed RM300,000, through the Ministry of Works,

to help flood victims in Sabah and Sarawak

Equipment• PLUS helicopter services provided air transportation carrying medical

appliances and provisions to inaccessible areas and airlifted patients to hospital

• UEM Edgenta allowed the use of its waterjet and other assets to transport flood relief aid

UEM Group of Companies Comes Together to Help Flood Victims

• Purchased and distributed several basic provisions including rice, sardines, blankets, towels, biscuits, soap, baby formula, toothpaste and toothbrushes

• Gave school supplies such as school uniforms, bags and stationery which benefited more than 1,800 primary and secondary school students

In-kind Contributions

#uem50 CSR

In conjunction with its 50th Anniversary, 2016 saw UEM Group undertaking the #uem50 CSR Project. The #uem50 CSR Project aims to lighten the financial burden and improve the living conditions of underprivileged individuals and also establishments in need of assistance.

The two parts of this full year programme involved eight states in Peninsular Malaysia. The first phase focused on basic food provisions and cash donations, which took place every weekend from 16 April to 22 May 2016. The second phase, which commenced in September, focused on the refurbishment of an orphanage, old folks home, religious schools, tahfiz and suraus. All activities were led by UEM ALERT volunteers.

With a total investment of RM1.06 million, 262 UEM ALERT volunteers reached out to a total of 3,200 individuals at 14 venues in eight states.

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70 UEM GROUP BERHAD


SOCIAL

PHASE 1: Distribution of basic provisions and cash donations

PHASE 2: Refurbishments

Location Kampung Chohong, Jasin and Kampung Sempang, Merlimau, Melaka.

Masjid Munawwarah, Mata Ayer and Masjid Jamek Berseri, Berseri, Perlis.

Tapah and Padang Rengas, Perak.

SK Felda Bukit Tangga, Bukit Kayu Hitam, Kedah.

Bukit Mertajam and Tanjung Bungah, Penang.

Masjid Al-Kauthar, Kg Batu Machap, Simpang Renggam, Johor and Masjid Jamek Chaah, Kg Jawa Segamat, Johor.

Masjid Sultan Muhammad Shah Parit 10, Sg Besar Sabak Bernam and Masjid An-Nur Kampung, Ladang Batu Tanjung Sepat Selangor.

Masjid Al-Falah Kariah Penarikan Bahau, Negeri Sembilan.

Beneficiaries 400 underprivileged individuals.

393 underprivileged individuals.



400 underprivileged and elderly people who lost their livelihoods when a tsunami hit their homes and fishing boats in 2004.

400 underprivileged individuals. 400 underprivileged individuals. 400 underprivileged individuals.

UEM ALERT Volunteers

27 22 46 26 40 40 20 41

17 – 18 April 2016 23 – 24 April 2016 7 – 8 May 2016 7 May 2016 14 – 15 May 2016 20 – 21 May 2016 21 – 22 May 2016 22 May 2016

8 October 2016 13 – 15 October 2016 22 October 2016 26 October 2016 12 November 2016 14 November 2016 19 November 2016 29 November 2016

Location Melaka. Maahad Tahfiz Ummul Mudaris in Simpang Renggam, Johor Bahru; Sekolah Agama Seri Bertam in Yong Peng, Johor Bahru; and Madrasah Baitulnur in Kampung Tebat, Alor Gajah, Melaka.

Kompleks Darul Hanan, Penang.

Miftahul Irfan in Kampung Paya Simpang Empat Genting, Balik Pulau, Pulau Pinang; and Pertubuhan Kebajikan Anak Yatim Sabak Bernam (PAYSA) and Pusat Anak Yatim As Solihin in Selangor.

Sekolah Tahfiz Al Yamani in Kampung Bakau Kelibang, Langkawi and Pondok Warga Emas Masjid Kariah Kuala Jempol, Kedah.

Pondok Warga Emas Masjid Kariah Kuala Jempol, Negeri Sembilan.

Madrasah Tarbiyah Islamiyah Kampung Sungai Gading Jalan Pahang, Tapah, Perak.

Rumah Sejahtera Baitul Hannan Simpang Empat Perlis.

Activities Major refurbishment of the home of En Kamsur Borhan and his wife including fitting a new toilet and building a roof, followed by a small gotong-royong, painting and lawn cleaning.

Refurbishment works and clearing the surrounding areas.

Handing donations and painted the old people’s home.

Donated bedding sets to the homes including new mattresses, pillows and bolsters and bedsheets. The visit was followed by a gotong-royong to clean up the surrounding areas.

Refurbishment facilities and gotong-royong to clean up the areas. UEM ALERT volunteers handed out a new washing machine, book cabinet and a brand new Public Announcement (PA) system to these schools.

Cleaning and painting of the homes.

Upgrading works. Gotong-royong activities.

Beneficiaries En Kamsur Borhan and his wife are both underprivileged and physically challenged.

Students 100 elderly people who live in Kompleks Darul Hanan, a home for elderly people.

Orphans and students Students and old folks Old folks Students Old folks


25 60 23 60 20 23 21 15

71UEM GROUP BERHAD


Location Kampung Chohong, Jasin and Kampung Sempang, Merlimau, Melaka.

Masjid Munawwarah, Mata Ayer and Masjid Jamek Berseri, Berseri, Perlis.

Tapah and Padang Rengas, Perak.

SK Felda Bukit Tangga, Bukit Kayu Hitam, Kedah.

Bukit Mertajam and Tanjung Bungah, Penang.

Masjid Al-Kauthar, Kg Batu Machap, Simpang Renggam, Johor and Masjid Jamek Chaah, Kg Jawa Segamat, Johor.

Masjid Sultan Muhammad Shah Parit 10, Sg Besar Sabak Bernam and Masjid An-Nur Kampung, Ladang Batu Tanjung Sepat Selangor.

Masjid Al-Falah Kariah Penarikan Bahau, Negeri Sembilan.

Beneficiaries 400 underprivileged individuals.




400 underprivileged and elderly people who lost their livelihoods when a tsunami hit their homes and fishing boats in 2004.

400 underprivileged individuals. 400 underprivileged individuals. 400 underprivileged individuals.


27 22 46 26 40 40 20 41

17 – 18 April 2016 23 – 24 April 2016 7 – 8 May 2016 7 May 2016 14 – 15 May 2016 20 – 21 May 2016 21 – 22 May 2016 22 May 2016

8 October 2016 13 – 15 October 2016 22 October 2016 26 October 2016 12 November 2016 14 November 2016 19 November 2016 29 November 2016

Location Melaka. Maahad Tahfiz Ummul Mudaris in Simpang Renggam, Johor Bahru; Sekolah Agama Seri Bertam in Yong Peng, Johor Bahru; and Madrasah Baitulnur in Kampung Tebat, Alor Gajah, Melaka.

Kompleks Darul Hanan, Penang.

Miftahul Irfan in Kampung Paya Simpang Empat Genting, Balik Pulau, Pulau Pinang; and Pertubuhan Kebajikan Anak Yatim Sabak Bernam (PAYSA) and Pusat Anak Yatim As Solihin in Selangor.

Sekolah Tahfiz Al Yamani in Kampung Bakau Kelibang, Langkawi and Pondok Warga Emas Masjid Kariah Kuala Jempol, Kedah.

Pondok Warga Emas Masjid Kariah Kuala Jempol, Negeri Sembilan.

Madrasah Tarbiyah Islamiyah Kampung Sungai Gading Jalan Pahang, Tapah, Perak.

Rumah Sejahtera Baitul Hannan Simpang Empat Perlis.

Activities Major refurbishment of the home of En Kamsur Borhan and his wife including fitting a new toilet and building a roof, followed by a small gotong-royong, painting and lawn cleaning.

Refurbishment works and clearing the surrounding areas.

Handing donations and painted the old people’s home.

Donated bedding sets to the homes including new mattresses, pillows and bolsters and bedsheets. The visit was followed by a gotong-royong to clean up the surrounding areas.

Refurbishment facilities and gotong-royong to clean up the areas. UEM ALERT volunteers handed out a new washing machine, book cabinet and a brand new Public Announcement (PA) system to these schools.

Cleaning and painting of the homes.

Upgrading works. Gotong-royong activities.

Beneficiaries En Kamsur Borhan and his wife are both underprivileged and physically challenged.

Students 100 elderly people who live in Kompleks Darul Hanan, a home for elderly people.

Orphans and students Students and old folks Old folks Students Old folks


25 60 23 60 20 23 21 15

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72 UEM GROUP BERHAD


UEM Group of Companies’ Back-to-School Programme

The Back-to-School Programme is an annual initiative by UEM Group of Companies. The programme distributes school supplies such as stationery, bags, songkok, tudung, school uniforms, shoes and socks to school children from less privileged backgrounds to help ease the parents or caregivers’ burden in preparation for the upcoming school year. Since 2013, UEM Group of Companies has provided to some 40,000 students and invested over RM8.50 million, under this flagship programme.

In 2015, 14,714 underprivileged primary and secondary school students from across Malaysia entered the 2016 school term with brand new uniforms and other essential school supplies courtesy of UEM Group of Companies, worth a total of RM2.90 million. The recipients of the 2015 Back-to-School Programme was made up of the community as well as the company’s very own personnel.

In 2016, over 13,000 students from 39 locations throughout Malaysia including the flood affected states of Kelantan, Terengganu and Sabah received assistance comprising two sets of school uniforms, shoes, school bags and stationery worth RM3 million.

Back-to-School Programme In 2015 & 2016

27,714 students worth a total of

RM5.9 million

In November 2015, a total of 410 Muslim students from five UEM Group adopted schools, comprising 204 male and 206 female students received Back-to-School items, Persatuan Ibu Bapa dan Guru (PIBG) fees, exercise books and a meal allowance for one year.

Eight Muslim students from SK Medini, Nusajaya, a Trust school adopted and sponsored by UEM Group in Nusajaya, Johor, received their school fees and transportation in addition to Back-to-School items, PIBG fees, exercise books and a meal allowance.

No Name of School(s) Number of Beneficiaries

1. SK Seri Gemilang, Butterworth, Penang 110

2. SK Balai Badang, Segamat, Johor 15

3. SK Senawang, Negeri Sembilan 80

4. SK Telok Gadong, Klang 73

5. SK Pendamaran, Klang 131

6. SK Medini, Nusajaya, Johor 8

Total 418

UEM Group Sponsored Schools and the Number of Beneficiaries

PLUS

PLUS invested a total of RM3.30 million in 2015 and 2016. Approximately 18,000 students from the nine states of Negeri Sembilan, Melaka, Johor, Perak, Kedah, Terengganu, Sabah, Sarawak and the Federal Territory of Kuala Lumpur benefited from this programme.

UEM Sunrise

In 2015, UEM Sunrise’s Back-to-School Programme donated school uniforms, shoes, socks and bags to 228 primary and secondary students in Tapah and Kg. Simpang Arang. In 2016, a total of 146 primary and secondary students received school supplies under UEM Sunrise’s Back-to-School Programme.

CIMA

In 2015, CIMA organised its Back-to-School Programme for 507 underprivileged students in Padang Besar Perlis and Bahau, Negeri Sembilan including three PINTAR schools adopted by CIMA in both states. In 2016, CIMA extended its Back-to-School Programme to 703 students from poor family backgrounds in Kuala Pilah, Negeri Sembilan, Kangar, Perlis and its three PINTAR schools in Bahau and Perlis. The programme brought cheer to the students with brand new uniforms and other essential school supplies.

SOCIAL

UEM Group

On 10 January 2015, UEM Group presented Al-Khairiyah Orphanage in Klang with school items and a cheque for RM12,107 for the purchase of school necessities and school fees for 49 orphans.

73UEM GROUP BERHAD


Centralised Tabung Zakat UEM

UEM Group’s Tabung Zakat was established in 2014 to help poor and underprivileged communities. Zakat is a form of obligatory alms; the amount collected is given in aid to poor and deserving Muslims.

Since the fund was established, we have provided financial aid and assistance-in-kind to various Asnaf such as Fakir, Miskin or Fisabillilah Islamic organisations to help the underprivileged within the communities that we serve.

Operating Companies channel 50% of their Zakat contributions to UEM Group. The collective Zakat is then disbursed via the Centralised Tabung Zakat UEM which funded various initiatives including:

• Repair and refurbishment works at Islamic community centres, religious homes and schools

• Contributions to mosques, suraus and other Islamic non-profit organisations• Providing underprivileged patients with medical assistance and cover at UKM Medical

Centre and University Malaya Medical Centre• Providing tuition fees to educational institutions for undergraduates• Purchasing Back-to-School items• Providing meal allowances, school fees and transportation for Fakir or Miskin

students• Providing Back-to-School items for employees’ children

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74 UEM GROUP BERHAD


UEM Group UEM SunrisePLUS UEM Builders CIMA UEM Edgenta

Fisabilillah 1,139,700 515,653 179,888 62,156 173,260 178,529

Fakir/Miskin 930,650 777,200 109,890 90,000 82,435 0

BREAKDOWN OF ZAKAT DISTRIBUTION BY BENEFICIARY IN 2015


Fisabilillah 1,033,820 1,006,159 409,178 186,566 120,218 115,973

Fakir/Miskin 1,150,148 10,000 166,516 166,775 290,780 125,580

BREAKDOWN OF ZAKAT DISTRIBUTION BY BENEFICIARY IN 2016

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75UEM GROUP BERHAD



Redistribution to Majlis Agama Negeri or Islamic/Governed Institutions

0 193,584.00 0 0 0 0

Repairs & Maintenance 180,000 138,010 34,180 22,413 173,260 5,000

Health 814,120 0 30,000 13,839 0 0

Personal Aid 9,900 0 15,390 60,000 36,000 172,029

Education 1,066,330 184,059 210,208 55,904 46,435 1,500

BREAKDOWN OF ZAKAT DISTRIBUTION BY CAUSE IN 2015


Redistribution to Majlis Agama Negeri or Islamic/Governed Institutions

100,000 390,739 0 0 0 0

Repairs & Maintenance 233,820 270,000 40,000 30,000 89,418 48,473

Health 725,000 10,000 102,816 0 7,800.00 0

Personal Aid 180,760 0 55,000 35,833 180,571 133,090

Education 944,388 345,421 377,378 287,508 133,209 60,000

BREAKDOWN OF ZAKAT DISTRIBUTION BY CAUSE IN 2016

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76 UEM GROUP BERHAD


SOCIAL

2015 2016Under the Fakir, Miskin, the number of Asnaf UiTM students has increased annually. Contributions are required to not only fund their tuition fees but also medical bills, meals, books and accommodation. UEM Group’s RM200,000 Zakat contribution was used to fund the Fakir, Miskin students’ academic and tuition fees for a single semester.

UEM Group disbursed RM700,000 of its Zakat allocation to patients of University Malaya Medical Centre (UMMC) and Universiti Kebangsaan Malaysia Medical Centre (UKMMC) who are infflicted with a critical and/or major illness under the category of Fakir, Miskin and Al-Gharimin. Amongst others, UEM Group’s Zakat funds were channelled to the Emergency Critical Fund and Planned Surgical/Medical Fund.

RM25,000 was disbursed to two siblings aged two and four years. Since birth, both siblings have been afflicted with Epidermolysis Bullosa, a very rare skin disorder which causes the skin to blister and tear. The disease is inherited from both parents, who are carriers of the genetic mutation. UEM Group’s Zakat was used to purchase diapers, foam dressings and bandages for the children.

UEM Group contributed RM50,000 from its Zakat allocation to help victims of the war in Palestine. The fund was used to provide prosthetics to 1,000 Muslim children who have lost limbs. It was also spent on wheelchairs, crutches and disabled-friendly amenities.

2015PLUS donated RM38,800 to 97 Asnaf Fakir and Asnaf Miskin on 15 April 2015. This Zakat contribution was given at Pusat Khidmat Masyarakat Pekan Jabi, Johor. A total of RM70,000 was donated to help 175 Asnaf Fakir and Asnaf Miskin in Perak. PLUS donated an additional RM15,200 to 38 Asnaf Fakir and Asnaf Miskin at Masjid Dato’ Dr. Haji Mohamad Eusoff Teh, Negeri Sembilan.

2016PLUS donated RM211,100 from its Zakat fund to 422 Asnaf Fakir and Asnaf Miskin of Perkampungan Orang Asli Sg. Gelang, Perak on 27 December 2016.

77UEM GROUP BERHAD


SOCIAL

2016On 26 February 2015, UEM Builders presented a cash voucher and basic food such as sugar, flour and crackers to Asnaf Fakir and Asnaf Miskin surrounding its operations. In total, RM41,051 of Zakat funds were contributed.

UEM Builders contributed RM30,000 of its Zakat fund to two orphanages namely Pertubuhan Kebajikan Nur Kasih and Pusat Jagaan Anak-anak Yatim Baiduri. 59 school-going orphans benefited from this contribution.

UEM Builders contributed RM55,095 of its Zakat fund to two orphanages namely Pusat Jagaan Pertubuhan Pengurusan Asrama Kebajikan Anak-anak Yatim Sekendi and Pertubuhan Kebajikan Ensan Ash-Shakur (Pekeas).

UEM Builders donated RM29,340 of its Zakat fund to Asnaf Fakir and Asnaf Miskin on 28 December 2016. Other in-kind donations included a cash voucher and basic food supplies such as sugar, flour and biscuits.

2015

2015 2016As part of its continuous efforts in contributing to the community within its developments, UEM Sunrise contributed a total of RM123,800 from the Zakat fund to 556 Asnaf students of its PINTAR Adopted Schools. The financial aid contributed to the students’ needs and funded relevant school necessities. The Zakat fund contribution has been distributed to a total of 298 primary and 258 secondary school students.

In 2016, UEM Sunrise disseminated various Zakat contribution to the Asnaf Fisabilillah, Fakir & Miskin in Central & Southern region. This initiative has benefited 831 Asnaf students from UEM Sunrise PINTAR Adopted Schools as well as 7 people and 21 organisations.

UEM Sunrise donated one haemodialysis machine to the Haemodialysis Centre of Klinik Kesihatan Sungai Lembing in Pahang on 30 May 2016. The haemodialysis machine provides kidney patients with better access to treatment within the community especially during the monsoon season. Flooding makes roads inaccessible which prevents patients from getting the necessary treatment from their usual healthcare providers.

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2015 2016A total of RM63,912 of CIMA’s Zakat fund was distributed to 730 Asnaf students and families under its Back-to-School Programme in 2016 for the community surrounding Kangar, Perlis and Kuala Pilah including its three PINTAR schools in Perlis and Bahau.

CIMA provided tuition classes to 76 form five students from Sekolah Menengah Kebangsaan Tengku Sulaiman and Sekolah Menengah Kebangsaan Dato’ Jaafar Hassan in Perlis utilising RM20,000 from its Zakat fund.

A total of RM39,907.50 from the Zakat fund was utilised to upgrade three houses in Pondok Warga Emas Kuala Jempol, Negeri Sembilan. CIMA also provided basic furnitures and kitchen equipments for the three units. This centre is an avenue for the elderly to study theology-Islam.

In addition to UEM Group’s contribution to 400 students from the community surrounding Padang Besar, Perlis, CIMA also furnished the same students with 400 school bags, worth RM19,200. This Zakat fund was given under CIMA’s Back-to-School Programme. CIMA also donated RM13,796 to Asnaf students of SK Kuala Kepis and SK Pusat Juasseh as well as RM13,438 to SK Chuping, Perlis.

2015 2016UEM Edgenta, via its Zakat fund, donated a hearse/multi-purpose van worth RM118,929 to Masjid Sultan Azlan Shah, Ipoh, Perak. A total of RM59,600 has been distributed to Asnaf namely Fisabilillah, which includes Masjid Ikhlasiah, 231 orphans and five orphanages surrounding UEM Edgenta.

UEM Edgenta contributed a total of RM74,580 from the Zakat fund to 226 Asnaf students. This donation aimed to meet their needs and help purchase school necessities. A total of RM60,000 was also distributed to 2,076 students of six PINTAR Adopted Schools in the Central, Southern and Northern regions.

A total of RM43,500 of Zakat funds has been distributed to 28 Asnaf categorised as Fakir and Miskin. RM15,000 in financial aid was channelled to Yayasan Orang Buta Malaysia. This aid helped purchase educational necessities and eased the burden of 50 blind students and the children of blind parents.

A total of RM48,473 has been distributed for the repair and maintenance of Sekolah Menengah Tahfiz, a surau and a charity organisation.

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Spreading the Joy of Ramadhan

UEM Group

UEM Group continued its tradition of organising annual Ramadhan charity programmes with the local community. On 25 June 2015, a group of 12 UEM ALERT volunteers led by the GMD/CEO, Dato’ Izzaddin Idris, handed out duit raya and basic provisions to more than 300 underprivileged individuals living near Masjid Raja Alang in Beranang, Selangor. This activity was repeated on 27 June 2015 at Masjid Jamek in Kampar, Perak for the benefit of more than 100 people. In 2016, UEM Group representatives also distributed provisions and duit raya to 400 villagers surrounding Rembau in Negeri Sembilan and Kuala Selangor in Selangor.

Marking the end of Ramadhan on 20 August 2015, UEM Group celebrated Aidilfitri with Pusat Jagaan Al-Fikrah, a nursing home for the elderly that was adopted by UEM Group in 2015. UEM Group is committed to providing financial and in-kind assistance as well as time and effort throughout the three-year adoption period.

PLUS

PLUS distributed 7,000 packets and 12,000 packets of bubur lambuk to highway users at Subang, Jalan Duta, Batu Tiga and Sungai Besi Toll Plazas in 2015 and 2016 respectively. This activity formed part of PLUS’ initiatives to reward highway users for their continuous support and celebrate the holy month of Ramadhan. Packets of bubur lambuk were also given to the public at Masjid Jamek Kampung Baru.

PLUS has a long tradition of sponsoring breaking fast and moreh sessions at 100 selected suraus across Peninsular Malaysia and donating to 20 orphanages across the country in conjunction with Ramadhan. This has been an annual community engagement of PLUS for the past ten years.

UEM Sunrise

On 7 July 2015, UEM Sunrise collaborated with Publika Shopping Gallery in organising an Iftar for 100 children from Rumah Nur Kasih Bestari in Segambut, Rumah Bakti Al-Kausar in Bangi and Maahad Tahfiz Kiblah Religious School in Sepang, Selangor.

In the following year, UEM Sunrise distributed Zakat funds of more than RM670,000 to schools, orphanages and underprivileged individuals Asnaf Fakir and Asnaf Miskin in Johor, Selangor, Perak and Kelantan.

UEM Edgenta

UEM Edgenta organised various charitable activities including cooking and distributing 700 bowls of “Bubur Lambuk Edgenta” at Masjid Al-Ikhlasiah in Bukit Kerinchi, Kuala Lumpur. UEM Edgenta also gave RM5,000 from its Zakat Wakalah fund towards the management of the mosque.

In 2016, UEM Edgenta volunteers again cooked and distributed more than 5,000 packets of bubur lambuk in seven locations across the Central, Southern

and Northern regions. 160 UEM Edgenta volunteers prepared and helped distribute it to local communities, hospitals and two nursing homes for the elderly: Pusat Jagaan Warga Emas Husnah Arrashid in Taman Melawati and Pusat Jagaan dan Pendidikan Warga Emas Darul Insyirah in Bandar Baru Bangi. UEM Edgenta’s regional offices in Johor, Perak, Penang, Kedah and Perlis undertook similar programmes at their local mosques.

CIMA

An Iftar session was held on 3 July 2015 at As-Solihin mosque in Chuping, Perlis. During the event, CIMA also handed out contributions to some 197 underprivileged individuals who belong in the Asnaf category, CIMA employees’ families of widows and surrounding mosques. On 11 July 2015, CIMA organised another Iftar session with the local community at Al-Hidayah Mosque in Rompin, Negeri Sembilan.

On 18 June 2016, CIMA distributed over RM64,000 to 330 Asnaf at two separate venues in Senaling, Negeri Sembilan and Kayang in Perlis.

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COMMUNITY CARE

UEM Group

UEM Group Built 58 Homes for 2014 Flood Victims of Kuala Krai, Kelantan

In May 2016, UEM Group via Yayasan UEM, signed an MoU with the Ministry of Works to build 58 homes on 13.1 acres of land in Sungai Durian, Kuala Krai. The land was provided by PUSPAKOM and the Industrial Training Institute.

In collaboration with the Public Works Department, a total of 107 homes were built. Yayasan UEM and Yayasan Hasanah funded 58 of these homes, which were constructed by UEM Group. The remainder were built by the Public Works Department which also led other infrastructure-related efforts including land clearance, pavement and drainage works. Each of the 107 houses had a floor area of approximately 812 square feet and features three bedrooms, a living and dining room, kitchen, bathroom and veranda.

Caring for the Senior Citizens

Pusat Jagaan Al-Fikrah has been under UEM Group’s home adoption programme since 2015. Prior to the adoption in 2014, through its Tabung Zakat, UEM Group contributed RM70,000 to this home for repairs and refurbishment works.

In 2015, activities included rewiring and upgrading the home’s electrical supply from phase 1 to phase 3 power and a special Aidilfitri celebration. During the second year of the adoption programme, additional renovation and upgrading works took place on the home to ensure the comfort of the residents especially those who were bedridden. UEM ALERT volunteers visited again on 24 September 2016 to celebrate Aidil Adha, and entertain them with performances.

On 8 October 2016, 20 UEM ALERT volunteers took 20 residents of Pusat Jagaan Al-Fikrah on a half-day excursion that consisted of a 30-minute cruise on Putrajaya Lake and lunch. We hope our engagement will continue to bring joy and maintain strong silaturahim with the residents who had been under UEM Group’s home adopted programme for two years.

“Hygiene Care Hey Day”

On 18 November 2016, UEM Group organised a half-day health programme at Sekolah Kebangsaan Telok Gadong, Klang. The programme with the tagline “Hygiene Care Hey Day” was conducted in collaboration with the Islamic Dental Association of Malaysia (IDAM) and Al-Meswak Mu’min Sdn Bhd, as part of UEM Group’s community care effort. Activities included a video screening on oral hygiene, a quiz and practical training on brushing teeth and washing hands. 120 students took part in the programme.

PLUS

Community Day

Each year, one special day is dedicated for PLUS and its employees to perform community service to help the needy and various communities across the country. PLUS allocates more than RM250,000 each year for its community programmes. Approximately 1,000 PLUS employees take part each year in the PLUS Community Day. In 2015 and 2016, this annual programme took place at 26 locations across the country to encourage employees to give back to the people and contribute to the well-being of the surrounding communities. Teamwork and the spirit of volunteerism are also promoted throughout the event.

Community projects organised to date include repairing an old folks’ home, repairing a jetty in Kuala Kuar, cleaning up an Orang Asli school, upgrading a public toilet and surau, and planting mangroves. PLUS volunteers also organised various activities for children’s shelter homes.

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UEM Sunrise

Agathians Shelter

On 27 October 2016, UEM Sunrise visited Pertubuhan Kebajikan Agathians and treated 40 boys aged between four and 19 years to pre-Deepavali joy. UEM Sunrise also presented RM19,550 to the home to upgrade the facility.

CIMA

Donating Cement to Rebuild Homes for Fire Victims

On 21 September 2016, CIMA contributed 350 bags of cement which were used to rebuild two homes that had been ravaged by fire. The homes of the two elderly beneficiaries were located in Kg. Tanah Panjis, Negeri Sembilan.

Addressing the Social Infrastructure Needs of SMK Tanah Merah, Port Dickson

In collaboration with Edra Power Holdings Sdn Bhd, CIMA contributed 300 sets of tables and chairs to SMK Tanah Merah, Port Dickson, Negeri Sembilan. CIMA continuously organises various community programmes that focus primarily on education and community development for its stakeholders in both Perlis and Negeri Sembilan.

UEM Edgenta

“Hygiene Care Hey Day”

On 25 August 2016, UEM Edgenta organised a “Love Your Teeth” campaign. The campaign was part of the “Hygiene Care Hey Day” programme that aimed to inculcate good dental hygiene in school children from an early age. The fun and educational session saw students engaging in activities such as dental talks, quizzes and the correct way to brush one’s teeth. 170 Orang Asli students of Year One to Six from SK Bukit Tampoi (Asli) in Dengkil received dental care tips led by company volunteers and doctors from the IMAM Response & Relief Team (IMARET). This programme aims to inculcate good dental hygiene, which is often neglected by school children from underprivileged backgrounds. The first phase of UEM Edgenta’s “Hygiene Care Hey Day” was held on 25 August 2016 for Year One to Year Three students; the second phase followed on 27 September 2016 for Year Four to Year Six students.

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COMMUNITY EDUCATION

Education is a gateway to an improved future. Supporting initiatives that strengthen younger generations’ desire and ability to learn has been an integral part of UEM Group’s community education mission. Our programmes teach children skills and offer competitive opportunities.

UEM Group of Companies believes education is a universal right and organises various programmes that provide rural and urban children with access to education. These programmes include remedial classes, tuition, examination and education clinics, motivational talks, teambuilding exercises, financial literacy classes and extracurricular activities.

We also ensure that our education assistance reaches neglected segments of society such as orphans and Orang Asli children.

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UEM Group of Companies – Collaboration Through PINTAR Foundation

PINTAR Foundation was established in 2008 to spearhead the PINTAR School Adoption Programme. The Foundation functions with the mission to make a meaningful difference in the lives of Malaysian students from the under-served communities. PINTAR Foundation works in collaboration with GLCs and private corporations in Malaysia to foster academic and non-academic excellence particularly for the underserved students nationwide through its school adoption programme. UEM Group of Companies contributes to the programme by ensuring that various initiatives are carried out in the adopted schools, from cultivating smart learning and team building activities to ICT, English and tuition classes, environmental awareness and educational trips.

UEM Group of Companies – English Literacy Programme Sponsored by UEM Group Berhad (UELP)

UELP aims to promote sustainable development and provide a support system. The programme was designed to improve teachers’ ability to teach English so that students learn, speak and write English more effectively.

In April 2012, UEM Group and the PINTAR Foundation collaborated on the three-year UELP programme with 50 PINTAR schools. UELP was the first and largest education initiative to be undertaken by a Malaysian company which was organised, coordinated and monitored by PINTAR Foundation. British Council was the appointed programme partner in charge of the design and delivery of UELP.

The schools’ teaching and learning approach to English improved significantly during the programme. UELP focused on equipping 116 primary school teachers with the necessary English teaching skills and knowledge. The programme concluded on 31 March 2015 and benefited 15,000 students.

UELP strengthened English teaching and learning through capacity building, employing various methods such as quality delivery structures, supportive intervention, student activities and community involvement. This approach developed students’ English reading, writing, comprehension and communication skills

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English LINUS improved by

nine points in two years

75% of teachersattending the course improved by at least one Teachers’ Development Index band

UELP Achievements

How UELP Helped Teachers and Students

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More than 100 group-wide employees volunteered for the Learn English Family (LEF) and Reading Circle (RC) sessions. LEF, an initiative under UELP, develops early English literacy in children by encouraging their parents to become actively involved. The programme sought to develop relationships between the children, their parents and the school.

An independent Social Return on Investment (SROI) study was conducted to analyse, measure and quantify the impact of UELP. The SROI estimated that investing RM3 million in UELP created RM54 million in social value; RM18.10 was created for every RM1.00 invested in the programme.

PINTAR School Adoption Programme

Upon the completion of the UELP, UEM Group and its Operating Companies participated in the PINTAR School Adoption Programme. In 2015, 39 schools within Peninsular Malaysia were adopted under a three-year programme.

This initiative displays the involvement of the private sector in education and is in line with both the Government Transformation Programme and Malaysian Education Blueprint 2013-2025.

In 2016, the number of schools adopted by UEM Group and its Operating Companies stood at 44; 7 secondary schools and 37 primary schools.

Schools Adopted Under the PINTAR School Adoption Programme within UEM Group of Companies

PLUS UEM SunriseUEM Group Berhad CIMA UEM Edgenta

All programmes conducted in 2015 and 2016 were designed and mapped against PINTAR’s Four Core Modules.

Motivational Programmes & Team Building Educational

Support Programmes

Capability & Capacity Building

Core Module

1

Core Module

2

Core Module

3

Core Module

4Reducing Vulnerabilities & Social Issues Programmes

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6

3

8

6

21

The SROI estimated that investing

RM3 million in UELP created

RM54 million in social value;

RM18.10 was created for every RM1.00 invested in the programme.

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The programmes conducted at the respective schools followed a two-pronged approach. Each school will not only deliver common programmes but also varied programmes or activities based on the respective schools’ needs.

The common initiatives, or “Flagship Programmes”, consist of motivational programmes and remedial classes. The “Flagship Programmes” are efforts coherent with PINTAR Foundation’s aspiration of influencing better educational outcomes for underserved students, through an intervention approach.

Flagship Programmes are common programmes that are emulated at all the adopted schools and range from Core Module 1 to Core Module 2.

• Motivational Programmes Core Module 1 (Motivational &

Team Building) – With the objective of motivating students to be more receptive in their studies and perform better.

• Remedial Classes Core Module 2 (Educational Support) –

With the objective of improving weak students’ performance and helping them pass identified mainstream subject such as English, Mathematics and Science.

UEM Group

Program Aspirasi - Bijak Wang

Apart from the remedial classes and the motivational programmes executed throughout the year, a financial programme dedicated for students who have completed their UPSR examination was organised. The financial programme is in line with the Ministry of Education’s objective to further expose students and raise their financial literacy. WILRA Malaysia, a financial consultancy and advisory company, was appointed to run Program Aspirasi – Bijak Wang at seven of UEM Group’s adopted schools.

The programme, which ran from 27 September to 5 October 2016, benefited 560 students aged 11 and 12 years. Students were encouraged to practise good financial habits during the two-day programme. Talks on “Good Habits in Handling Money”, “Wealth Creation” and “Smart Buying Habits” were delivered. Invited speakers also introduced various leadership and communications skills and techniques during the programme.

Program Aspirasi – Bijak Wang inspired the students to be financially smart. The students were equipped with the necessary skills and techniques to achieve their full potential in becoming responsible citizens.

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SK Kampong Batu SK Telok Gadong SK Senawang SK Pendamaran Jaya

Seven Participating PINTAR Adopted Schools

SK Seri Gemilang SK Padang Temu SK Pantai Kundor

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Teacher’s Workshop

In November 2016, a two-day workshop on ‘Teaching Maths the Creative & Effective Way’ and ‘Teaching Children Math the Fun & Magical Way’ was organised for 21 teachers from 11 of our adopted schools. Led by Madam Teoh, an experienced mathematics teacher, the programme introduced effective ways of attracting their students’ interest in learning mathematics. The workshop was filled with interesting methods using magic tricks, puzzle craft and games.

PLUS

Under the PINTAR School Adoption Programme, PLUS has adopted three primary schools and three secondary schools for the period from 2015 to 2017. RM300,000 is being allocated for the six schools annually to fund academic and motivational programmes for students who will be sitting for national examinations including the UPSR, PT3 and SPM.

The schools adopted by PLUS cover the alignment of the highway in the following states, Johor, Perak , Selangor & Kedah.

As part of the programme, the students also experienced an educational trip under the PLUS EduFun Trip whereby selected students were sponsored for an excursion trip to broaden their experience and knowledge which included a visit to PLUS Traffic Monitoring Centre at Persada PLUS. In addition, the PLUS MUFORS Inter School Mural Competition saw SMK Kota Sri Paloh in 10th place and SMK Ampang Pecah in 20th to win cash prizes.

Another achievement recorded during the past two years was the winning of SMK Kota Sri Paloh at the CIDB MyCity 2050, which entitled the school to a RM6,000 reward and medal.

UEM Sunrise

UEM Sunrise has adopted 17 schools within Iskandar Puteri, Nusajaya, Johor under the PINTAR School Adoption Programme. In 2008, UEM Sunrise became one of the pioneer companies within the group that implemented the four Core PINTAR Modules.

A minimum annual allocation of RM600,000 covers programmes such as an Academic Excellence Programme, ICT Knowledge and Appreciation Programme, Micro Controller Project, the English Programme, the Green School project, the Road Safety Programme and the Motivational Camp and Hygiene Talk.

In 2015, UEM Sunrise added four additional schools to its adoption programme, making a total of 21 schools to date. 18 of these schools are in Iskandar Puteri where most of UEM Sunrise’s developments are located and three are in the Klang Valley.

On 29 March 2016, UEM Sunrise completed the construction and handed over a resource centre which is replete with sponsored Bahasa Malaysia and English reading materials. The resource centre has benefited 427 SK Kompleks Sultan Abu Bakar students in Gelang Patah, Johor.

The total amounts invested in UEM Sunrise PINTAR schools in 2015 and 2016 were RM724,920 and RM472,900 respectively. Its exemplary CSR efforts were recognised at the Iskandar Malaysia Social Hero Awards 2015 (IMSHA).

CIMA

In its effort to raise academic performance, a four-day English Camp for Year 4 and Year 5 students of Sekolah Kebangsaan Chuping, Perlis was organised. Held from 14 to 17 November 2016, the programme aimed to stimulate and cultivate the students’ love and interest to learn English in a fun way.

The English Camp’s concept of simple, fun, interactive & meaningful was set to develop students’ self-confidence, self-esteem, creative thinking and problem-solving skills. The camp also aimed to improve students’ English language proficiency via group presentations and fun-filled activities such as ice-breakers, war cry, quizzes, spelling bee competition and public speaking.

To mark the end of CIMA’s 2016 Tuition Programme, a two-day UPSR Examination Clinic was organised. The programme, in collaboration with the Education Unit of Berita Harian, inspired and encouraged students in their mental and physical preparation for the upcoming UPSR examination in September 2016. Held on 13 and 14 August 2016, 250 students from 47 primary schools surrounding Kuala Pilah, Jempol and Jelebu congregated at SK Saint Aidan, Bahau, Negeri Sembilan. The programme was conducted by experienced and qualified teachers who provided the students with detailed methods and tips on answering exam questions in Bahasa Malaysia, English, Mathematics and Science.

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UEM Edgenta

Three two-day motivational camps were held to foster academic and non-academic excellence among students from underperforming schools within the communities in which UEM Edgenta operates.

The programme aimed to prepare the students for their upcoming UPSR examinations. The students participated in a series of activities, such as Leadership Games and Mind Explore, that were specially designed to promote teamwork and improve their leadership, creativity and thinking skills.

The motivational camp took place from 12 to 13 May 2016 at Putri Ayu Chalet & Training Centre, Kedah. It involved 140 students from SK Wan Sulaiman Siddiq and SK Bukit Kayu Hitam in the Northern region. This was followed by a Central region camp at the Excel Training & Country Resort in Broga on 14 and 15 May 2016 for 150 students from SK Bukit Tampoi (Asli), SK Jenderam and SK Sungai Rawang. Finally, the Southern region camp at Kem Kaizen in Johor was held for 44 students from SK Seri Yong Peng on 27 and 28 May 2016.

A total of 334 Standard 6 students from six of UEM Edgenta’s PINTAR School Adoption Programme in the Central, Southern and Northern regions attended the UEM Edgenta Motivational Camp 2016.

Invited speakers for the camps included the famous and experienced motivational speakers, Dato’ Dr. Fadzilah Kamsah and Pencetus Ummah Azra’ie.

UEM Group - Yayasan UEM

Yayasan UEM supports UEM Group’s corporate responsibility initiatives and philanthropic activities. Established in 2000, Yayasan UEM is UEM Group’s Human Capital arm and has become an avenue to channel its corporate philanthropic activities, with education being its main thrust.

Yayasan UEM provides scholarships to Malaysian scholars from differing backgrounds so they can pursue their tertiary education at local and foreign universities.

Yayasan UEM supports the nation’s quest for human capital of distinction by selecting, supporting and nurturing high-deserving achievers who will eventually become leaders in the nation.

RM12,176,880 and RM10,225,210 were spent on various CSR and philanthropic causes in 2015 and 2016 respectively. The funds were used for scholarships, Kolej Yayasan UEM’s operating costs, trust school programmes, disaster relief, study grants, UEM medals and other administrative expenses.

UEM Group Scholarship Programme

The annual UEM Scholarship Programme supports the nation’s objectives of creating elite scholars and supplies talent to develop future leaders for the country.

RM13,017,155 RM12,176,880 and RM10,225,210

was disbursed as scholarships in 2015 and 2016, benefiting

234 students.were spent on various CSR and philanthropic causes in 2015 and 2016 respectively.

The course is offered to those pursuing fields of study that match UEM Group’s future needs namely Engineering (Civil, Mechanical and Electrical), Business (Economics, Accounting, Finance, Business Management and Marketing) and Built Environment (Quantity Surveyor, Town Planning, Land Surveyor, Building Services and Construction Management).

Other than providing financial grants, the Scholars Development Programme was introduced for all UEM scholars in 1993. The comprehensive modules organised for UEM scholars include self-awareness, academic enhancement, interpersonal growth and management, leadership and team building.

Apart from leadership training and development activities, UEM scholars are also provided with job attachments and internships within the UEM Group of Companies and within the bonded period.

Scholarship for SPM Leavers

Scholarship for STPM/Matriculation/Foundation Leavers

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UEM Medal Awards

The UEM Medal for Excellence in Engineering, Business Management and Management Sciences commenced in 2013. The awards initially, were only presented to engineering schools with courses related to UEM Group’s core businesses namely civil, mechanical, chemical, environmental, electrical and electronic engineering. In totality, the recognition of awards, was extended to not just outstanding Engineering graduates at the local Research Universities (RUs); but Business Management and also Economics & Management Sciences at the Institut Pengajian Tinggi Awam (IPTAs).

Formerly known as the UEM Medal for Excellence in Engineering, outstanding engineering graduates from Universiti Kebangsaan Malaysia (UKM), Universiti Malaya (UM), Universiti Putra Malaysia (UPM), Universiti Teknologi Malaysia (UTM), Universiti Sains Malaysia (USM) and Universiti Teknologi MARA (UiTM) were selected.

In 2015, Universiti Islam Antarabangsa Malaysia (UIAM) was further added to the list of award recipients.

In recognition of their achievement, apart from cash reward of RM5,000 and certificate of recognition, job attachments within the UEM Group of Companies would also be offered to the successful award recipients.

UEM Group - Kolej Yayasan UEM

Kolej Yayasan UEM (KYUEM) is a fully residential, co-educational college set in a beautiful 50-acre college campus approximately 70km from Kuala Lumpur.

The college has recently completed a RM25 million refurbishment project. The cafeteria, hostels and staff accommodation were renovated and a new hostel constructed. KYUEM students are housed in chalets, villas and apartments rather than dormitories. This is a testament to our commitment in delivering all-rounded excellence in providing top quality pre-university education.

Established in 1998 under Yayasan UEM, KYUEM is a premier residential college specialising in providing high-quality Cambridge International Examinations (CIE) A-Level education. It has an excellent success rate of gaining students’ admission into the finest universities in the world, predominantly in the United Kingdom. Examples include the University of Cambridge, University of Oxford, Imperial College, London School of Economics and University College London.

A significant number of students also progress to top class universities in the United States including Massachusetts Institute of Technology (MIT), Princeton University, Harvard University and several universities in California. Some students also attend universities in Australia, Canada and Hong Kong.

Since its first graduating cohort in 2000, KYUEM students have consistently won awards for excellence in A-Level studies including CIE Cambridge Brilliance Awards and ‘Top in the World’ awards in several subjects.

The college boasts a world class record of A-level success that has been improving year on year.

KYUEM Students Achievements in A Level 2016

Achievement 2015 2016

Students obtaining grades A* -B

90% 90%

Students obtaining grades A* or A

75% 71%

Students obtaining at least three A Grades at CIE

61% 57%

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16 studentsreceived provisional offers from the University of Oxford and University of Cambridge before they graduated (7 students in 2015 and 9 students in 2016)

KYUEM is one of the few colleges in the region to be granted the Cambridge International Fellowship

Fully Residential is equipped with world-class learning facilities and tranquil surroundings

23* students gained either “Best in the World” or “Best in Malaysia” awards from the Cambridge International Examinations Board (13 students in 2015 and 10 students in 2016)

KYUEM Highlights in 2015 and 2016KYUEM also focuses on enhancing students’ well-being through its co-curricular activities including sports and cultural activities. The campus is equipped with recreational facilities including a gymnasium and sports arena.

Yayasan AMIR

Incorporated on 26 October 2010, Yayasan AMIR is a not-for-profit foundation that improves access to quality education in Malaysian Government schools through a Public-Private Partnership with the Ministry of Education.

The programme’s goal is to be a leading network of Trust Schools across Malaysia and establish a nationwide replicable school transformation model. Yayasan AMIR Trust Schools are holistic, inclusive and representative of Malaysia’s diverse ethnic background. This programme aims to transform student outcomes by enhancing school management practices and championing improvements to curricula and education delivery.

In 2015 and 2016, UEM Group continued its support for two Trust Schools in Iskandar Puteri, Johor under the Yayasan AMIR Trust Schools Programme. UEM Group provided financial assistance and sponsorship amounting to RM9,684,480

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for five years for the development and improvement of education in Sekolah Kebangsaan Medini and Sekolah Menengah Medini.

On 11 February 2015, UEM Group’s Chief Human Capital Officer and UEM Sunrise’s Head of Human Resource were invited to the Community Day at Sekolah Menengah Medini. They discussed the current job market, human capital strategy and the importance of education in securing good jobs with the younger generation.

Participation in this programme allows UEM Group to play the role of ‘change-agent’ which enables us to elevate and transform the standard and delivery of education at public schools in Malaysia. The allocation also allows UEM Group to offer its adopted students from poverty stricken and disadvantaged areas surrounding Iskandar Puteri equal access to education and is given the same opportunity to succeed.

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Engaging parents in the education of their children at school is increasingly viewed as an important means to support better learning outcomes for children. Parents are universally accepted as a child’s first teachers. Researches have shown evidence for the positive effects of parent involvement on children, families and school when schools and parents continuously support and encourage the children’s learning and development. Over the years, our Trust Schools have planned joint-activities with parents including Gotong-royong and Hari Keusahawanan.

Project STAR

Launched in May 2015, Project STAR (Share, Think, Ask, Respond) is a graduate talent-initiated programme. UEM Group’s graduate trainees volunteer at underperforming and generally low-income schools under this mentorship initiative.

The volunteers guide the students in completing innovative projects involving coding, circuitry and robotics. Initially, with 48 volunteers in two schools, the programme has expanded into five schools with 81 volunteers in its second season.

Participants of UEM Group’s Young Engineers Programme (YEP) and Young Graduate Programme (YGP) devoted their Saturdays to mentor a group of young school children.

Project STAR was formed in partnership with residents of Teach for Malaysia (TFM) fellows in two schools: SMK Bandar Baru Ampang and SMK Puchong.

At SMK Bandar Baru Ampang, 18 YGPs, YEPs and external volunteers were involved in the ‘Closing the Gap’ programme that aimed to improve the English literacy levels of 92 students in the school.

In addition to classroom and tutoring sessions, fun ice-breaking games helped strengthen the mentor-student relationship. Bi-weekly assessments comprising one-to-one interviews and written tests were used to monitor the students’ progress. At the beginning of the programme, literacy levels were equivalent to Primary 1-Primary 3 competency. Their literacy levels had improved by three years upon the programme’s completion.

At SMK Puchong, 30 YEPs and YGPs supported a very dedicated Teach for Malaysia fellow in a programme called ‘Maker_Ed’. The programme, which focused on science and technology, trained students in problem-solving and encouraged them to be creative and independent in finding solutions. They learned to programme Lego robotics on ‘Arduino’ and ‘Raspberry Pi’ with some even practising for the Olympiad Mathematics competition.

On 27 September 2016, 160 Project STAR schools competed in the Young Innovate Selangor state competition in UiTM, Puncak Alam campus. Five students from UEM’s Project STAR – Chumbaka were selected to go to Silicon Valley in San Francisco under MDEC’s Digital Maker Global Exchange Programme (DGMX).

Encouragingly, all five students came from underperforming and low-income schools, beating students from some of the best performing schools in Malaysia. Only 10 students were selected from 33 of the country’s brightest young makers who participated in a nationwide competition organised by MDEC.

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OTHER COMMUNITY EDUCATION PROGRAMMES BY UEM GROUP OF COMPANIES

UEM Sunrise

Pintar Al-Quran

In addition to the PINTAR School Adoption Programme, UEM Sunrise in July 2008 in collaboration with five KEMAS Kindergartens in Gelang Patah, Johor also initiated its own community programme for pre-schoolers namely the Pintar Al-Quran. In 2015, two KEMAS kindergartens were added to its pre-schoolers Pintar Al-Quran programme namely Tadika PRIMA and Tadika Firdaus. This brought the total to seven.

CIMA

CIMA Tuition Programme

The CIMA Tuition Programme, which caters to UPSR students, began in 2011 in Bahau and 2013 in Perlis. The programme, CIMA’s annual flagship Corporate Responsibility (CR) initiative, aims to provide much-needed assistance for students to excel in their studies.

The tuition programme is in collaboration with Pejabat Pendidikan Daerah (PPD) Jempol/Jelebu, PPD Kuala Pilah and Jabatan Pendidikan Negeri Perlis. It usually takes place between March and August each year.

Teachers recruited in this programme were nominated based on recommendations by participating schools in Perlis and the Department of Education of Kuala Pilah, Jempol and Jelebu. CIMA prioritises schools with children from low to middle-income families, children residing near CIMA plants and children of CIMA employees. A total of 570 students in Bahau and 430 students in Perlis have benefited from this programme over

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the past two years. CIMA also conducts UPSR motivational classes and UPSR examination clinics as part of the CIMA Tuition Programme.

UEM Edgenta

Work-Based Learning Programme (WBL)

UEM Edgenta has collaborated with the Ministry of Education (MOE) on its WBL programme since 2007. It provides advanced diploma students from Politeknik Sultan Salahuddin Abdul Aziz Shah (PSA) in Shah Alam with WBL opportunities. These students are exposed to Facilities Engineering Maintenance Services and Biomedical Engineering Maintenance Services during one-year industry attachments at various hospitals managed by UEM Edgenta. Adhering to Malaysian Qualifications Agency requirements, they follow a structured curriculum that consists of both academic and on the job training.

UEM Edgenta has completed two WBL programmes to date, training 176 students with PSA Advanced Diplomas in Electronics Engineering (Medical) and Advanced Diplomas in Facility Management. These two WBL programmes have been elevated to degree programmes in line with new developments to meet the industry’s needs.

On 8 March 2016, UEM Edgenta signed a Memorandum of Collaboration (MoC) with MOE to extend this collaboration for another two years. Since 2016, 20 PSA students have started their training at seven hospitals managed by Edgenta Mediserve.

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SOCIAL: LABOUR PRACTICES AND DECENT WORKUEM Group has a clear strategy for attracting, developing and retaining a world-class workforce that is competent, motivated and flexible. We anticipate the competencies required many years in advance. We aim to maintain our status as an employer of choice, creating an inclusive and engaging workplace for all employees.

We practise teamwork, mutual respect, open communications and empowerment while embracing diversity and inclusiveness to foster internal and external collaborations.

We place great importance on developing our human resources and support each of our employees and improve their capabilities by:

• Developing highly remarkable strengths

• Helping them become professionals who demonstrate their own diverse talents

• Fostering a work culture where managers are also closely involved in the development of employees

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COMMUNITY CONTRIBUTIONS

UEM Group of Companies shares its resources and expertise to help build more resilient communities through local community programmes and has invested in these communities for many years.

Our contributions have resulted in a positive impact on local communities. We have improved their well-being and encouraged sustainable development that goes beyond the social and economic value of our businesses. In 2015 and 2016, UEM Group of Companies spent a total of RM16.30 million and RM18.41 million respectively on developing local communities.

CORPORATE COMMUNITY CONTRIBUTIONS BY UEM GROUP OF COMPANIES IN 2015 AND 2016

RM

(mill

ion)

20

14

16

18

12

10

8

6

4

2

0

16.30

18.41

Donation and sponsorship

Outreach and community engagements

Total

Education

Scholarships

Awareness programmes6.01

1.34

6.92

0.024.12

1.270.00

5.78

3.25

6.00

In 2015 and 2016, UEM Group of Companies spent a total of

RM16.30 million and RM18.41 million respectively on developing local communities.

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The diverse workforce of our operations in Malaysia is presented in the charts below.

>50 40-50 30-40 <30Male Female

2,184

4,036

4,289

3,663

7,647

4,502

8,499

5,673

2015

2015

2015

2015

2016

2016

2016

2016

BREAKDOWN OF EMPLOYEES BY GENDER

BREAKDOWN OF EMPLOYEES BY AGE GROUP

Others Indian Chinese Malay

BREAKDOWN OF EMPLOYEES BY ETHNICITY

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2015192

12,646

834500

2016

11,045

148 471485

2,075

3,412

3,994

2,668

DIVERSITY MATTERS

UEM Group embraces diversity and inclusion from the top down. The differing backgrounds, opinions, experiences and perspectives of a diverse workforce make us a stronger business and help to foster a truly collaborative workplace.

We seek to incorporate diversity into every part of our business. This approach helps us leverage on our collective skills, compete in the marketplace and serve our communities effectively.

We aim to develop a diverse and inclusive environment in which skilled and motivated employees work together to drive innovation and deliver results in support of our core business and emerging opportunities.

Each of us has many different diverse traits that shape our view of the world, our perspective and our approach. We try to maximise the value of people’s individual differences and understand that creating an inclusive work environment is essential for us to achieve this.

TOTAL NUMBER OF EMPLOYEES

BREAKDOWN OF EMPLOYEES BY CATEGORY

Non-executives Executives Managerial

14,172 12,149

10,29 6

2,788

1,088

8,478

2,6311,040

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Performance Management

UEM Group’s performance management cycle, which is being adopted across all Operating Companies, ensures that all Group employees are appraised regularly. All employees receive formal feedback annually and the process promotes regular dialogue and facilitates continuous performance improvements. UEM Group has also introduced several employee recognition schemes.

FINAL REVIEWFINALISE YOUR ACHIEVEMENT

PERFORMANCE MONITORINGREPORT YOUR PROGRESS

PERFORMANCE PLANNINGCRAFT OUR SCORECARDS

Executive/Non-Executive Executive/Non-Executive

Non-Executive

Executive

1. Begin discussing and planning your scorecards/ KPIs with your appraiser

2. Key in agreed KPI planning into PMS Online System

3. Submit and get your KPI planning approved

1. Complete your self-assessment

2. Schedule a final review discussion with your appraiser

3. Ensure your final review is approved and reviewed

4. Wait for your calibrated score to appear

5. Discuss your calibrated score with your appraiser

1. Update your KPI progress

2. Make approved changes to your KPIs

1. Schedule a performance review disussion with your appraiser

2. Receive feedback from your appraiser

Performance Management System (PMS)

UEM Group PLUS UEM Sunrise UEM Builders CIMA UEM Edgenta

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

Top Management (UT1 - UT6)

9 8 5 5 0 0 2 1 1 1 4 4

Senior Management (UE7 - UE9)

24 30 9 9 35 33 7 3 4 3 31 33

Middle Management (UE5 - UE6)

29 30 44 47 59 66 10 8 11 10 44 43

Female Representatives in Management Level within UEM Group of Companies

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Our PMS consists of the five stages illustrated in the diagram below. PMS is used to evaluate and reward employees’ achievements in accordance with their respective KPIs, competencies and contributions.

Five Stages of the PMS

KPI Planning Process

Final Performance

Review

Performance Calibration

Self-assessment

Performance Monitoring

Superiors discuss and set annual KPI objectives and targets to be achieved for the performance year with subordinates. Upon completion, the KPI is entered into the PMS Online System.

KPI progress is captured in the PMS Online System. KPIs may be changed with a superior’s justification and approval.

A review and evaluation of self-performance are provided.

One-to-one review sessions with superiors are held to determine achievement of individual performance.

The employee’s performance is discussed with other line managers to determine an appropriate performance level for individuals.

Upward Feedback

UEM Group of Companies uses a bottom-up development tool that provides a unique opportunity for our employees to give feedback to their leaders. The approach provides every manager with the necessary information to gauge how they are performing, which allows them to identify their strengths and weaknesses.

Rewarding Performance

Rewarding good performance is just as important as managing, motivating and monitoring it. UEM Group provides meaningful reward and recognition strategies geared to positively influence employees’ attitudes and behaviour.

UEM Group’s Seven Performance Bands

Bronze

Low Silver

High Silver

Low Gold

Mid Gold

High Gold

Platinum

Our performance bands are used to calculate performance-based rewards such as salary increments, bonuses and differentiated rewards for talent. The higher the performance band, the higher the rewards. For example, platinum is the highest and employees reaching this band will be rewarded with the highest bonus quantum; bronze is the lowest and these poor performers do not receive any rewards.

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Benefits and Compensation

UEM Group of Companies offers a competitive compensation and benefits package. It is one way we acknowledge the value our employees bring to the Group and is followed by all Operating Companies.

We provide a balanced and performance-oriented compensation system that aligns the interests of shareholders with those of employees. Our compensation framework is designed to attract, motivate and retain qualified talent. Our goal is providing compensation that is competitive in local labour markets while allowing employees to focus on delivering outstanding results.

UEM Group of Companies’ compensation package surpasses legal requirements including those of the Employees Provident Fund Act 1991. Although the Group’s statutory Employees Provident Fund (EPF) contribution is 12%, our EPF payment ranges from 12% to 15% depending on the employee’s years of service.

We expect employees working at UEM Group and all Operating Companies to give their maximum effort and best performance each day. However, we also want them to take some time to enjoy their lives outside of work. We place great importance on employees’ welfare and ensure our compensation package covers wellbeing benefits such as memberships in social and recreational clubs.

We always support employee initiatives aimed at advancing their careers. All confirmed executive employees are entitled to have annual membership fees reimbursed for up to two approved professional associations that are deemed relevant to their professions.

UEM Group’s compensation and benefits package also includes Group Personal Accident (GPA) insurance and Group Term Life (FTL) insurance.

We Care for Your Family

Promoting Work-Life Balance

Balancing work life and private responsibilities is a driver of employee efficiency and creating a satisfactory workplace. UEM Group develops practices that allow employees to have more time for their private lives and organises off-hour activities.

UEM Group Study Grant Programme

The UEM Group Study Grant Programme was introduced on 31 October 2014. This initiative provides financial assistance, specifically for employees’ children who wish to continue their tertiary education, irrespective of their field of study.

Children of permanent or contracted employees who have served UEM Group for three years with a total monthly household income not exceeding RM5,000 are eligible. Providing these children with a helping hand further reiterates our commitment to education.

UEM Group Study Grant Programme Highlights

Up to RM4,000

for pre-university/certificate

Up to RM6,000 for a diploma

Up to RM10,000 for a bachelor’s

degree

Recipients are not bonded with UEM Group and may still receive

assistance from other registered charitable

organisations

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This financial assistance takes the form of a convertible loan; upon completion of the course it will automatically be converted into a grant and there is no need to repay the loan.

Employee’s Children Academic Excellence Award

The Employee’s Children Academic Excellence Award was launched in 2012. The annual award motivates and acknowledges the academic achievements of our employees’ children in major national examinations such as UPSR, PMR, SPM and STPM. In 2015 and 2016, 17 students received this award.

PLUS

Child Development Centre (CDC)

PLUS’ CDC was opened on 4 May 2009 and officially launched on 8 January 2010 by Datin Seri Rosmah Mansor. The CDC creates a safe and healthy environment for employees’ children while directing them towards academic success. The CDC caters for kindergarten and nursery-going children between the ages of three and six.

The kindergarten education curriculum is developed in line with Kurikulum Standard Pra Sekolah (KSPK) under Pejabat Daerah Petaling; the curriculum for nursery education is based on Permata Curriculum under Jabatan Kebajikan Masyarakat (JKM).

In 2015 and 2016, a total of

RM4.50 million was invested in the UEM Group Study Grant Programme, benefiting

650 individuals.

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The centre also conducts extra co-curriculum classes such as speech and drama, gymnastics and Taekwondo. The total number of PLUS CDC children continues to grow as shown in the graph below.

Number of PLUS CDC Children

Num

ber

of C

hild

ren

2014 2015 2016

90

60

70

8079

8480

Equal Opportunity

We have clear policies and allocate training to combat discrimination. Our managers are responsible for ensuring that equal opportunities and other labour principles are adhered to in their departments. In our offices, employees receive mandatory training on workplace conduct and business ethics.

We encourage and promote procedures for reporting any unwelcome attitudes in the workplace.

UEM Group takes any illegal breach of discrimination standards seriously. In 2015 and 2016, we received no credible complaints of discrimination from any locations.

Career Development

UEM Group is committed to fostering career development, succession planning and professional development and integrates these drivers into the Group’s long-term strategic planning process.

Our efforts to build a career path for employees begin on an employee’s first day. Each undergoes a robust onboarding programme that is designed to engage and inspire them. Employees have access to our diverse career development courses and an active mentoring programme throughout their careers. We reimburse qualifying education expenses and offer other tools to help them improve their roles and advance over the long term.

Developing employees’ skills also boosts organisational performance. The Group presents employees with opportunities that increase their potential. Their performance is monitored and communications improved to create a qualified and successful labour force.

Training is essential to our business and we offer several training modules that develop employees and improve their skills to accommodate various facets of the organisation’s growth and performance. Examples of ongoing employee training and development include First Aid & CSR, Leading Others, Personal Financial Planning – The H.E.A.R.T of Retirement, Sharpen your Negotiation Skills, Stress Management, Communicating in English with Confidence and Business Analytics & Reporting.

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UEM Group Young Executive Scheme (YES)

UEM Group’s YES was launched on 12 September 2006. Today, it is known as UEM Group Skim Latihan 1Malaysia (UEM Group SL1M). It is a special programme aimed at equipping fresh graduates with invaluable skills and experience for better employment opportunities in the future. Under the scheme, successful candidates will be offered training contracts, inclusive of allowances and benefits, to work on selected projects undertaken by UEM Group. A total of RM9.9 million is spent on this programme each year.

UEM Learning Centre (ULC)

2016

19 candidates absorbed

461 candidates recruited

2015

69 candidates absorbed

310 candidates recruited

ULC, a full-fledged training facility, is the main custodian of our human capital development initiatives. The centre conducts intensive training programmes that focus on learning enhancement and capacity development in particular. This training complements other learning and development programmes undertaken by UEM Group of Companies.

ULC delivers soft skills development programmes as well as functional and talent management programmes for nonexecutive to senior management levels. Programmes delivered at the ULC in 2015 and 2016 included Finance, Communication and Presentation, Management, Creative Problem Solving, Mind Mapping, Risk Management, Performance Management and Human Resource Management.

UEM Group Induction Programme (GrIP)

The GrIP provides new hires with a general overview of the Group. Delivered to all new employees within their first six months, the GrIP:

• Aligns new employees with their employers’ business objectives

• Creates a sense of belonging• Offers employees a chance to

collaborate and network with each other

• Makes employees feel welcome and comfortable in their surroundings

• Introduces the training and educational opportunities offered by the Group

• Familiarises employees with the Group’s procedures and practices

All new hires receive customised induction training by the individual Operating Companies.

Emerging Leaders Programme (ELP)

ELP is a development programme where nominated employees, ranging from executives to assistant managers, underwent a six-month journey from December 2015 to May 2016.

The programme’s objectives were to enable participants to:

• Enhance their leadership skills to ensure more balanced growth and development

• Develop their capability as business leaders and build foundational skills in project management, strategic thinking and business acumen

• Stretch their ability to lead projects by being more resourceful and leveraging on their networks effectively

Throughout the six months, participants worked on individual action learning projects centred on business process improvement. They also attended several workshops where they learned the necessary skills and tools to help their projects come to fruition. At the end of the programme, these participants pitched their ideas to the top management in order to gain the buy-in to implement their business improvement idea in the workplace.

The number of ELP candidates enrolled at UEM Group of Companies in the past two years is presented below.

Companies No. of Candidates

UEM Group 6

PLUS 5

UEM Sunrise 4

UEM Builders 0

CIMA 3

UEM Edgenta 5

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Leadership Acceleration Programme 1 (LeAP1)

LeAP1 is a six-month action learning-based programme designed to accelerate the development of UEM’s senior managers to perform at the next level of their careers. For this cohort, 19 participants (UE7-UE9) from different operating companies were selected to join LeAP1.

The objectives of the programme were to enable the participants to:

• Further enhance their business leadership with strong strategic thinking skills and business acumen

• Continuously innovate by applying the latest research and best practices in decision making, financial analysis, and customer segmentation and analysis

• Understand their own leadership prof i le and i ts inf luence in accomplishing organisational goals

• Bring synergy into personal and organisational values and vision

ACCAMaster of Science

in Business Leadership

MICPA CPA

Masters CIMADiploma/Advanced

Diploma, Degree

Other relevant qualifications

including certificates

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CEP encourages employees to advance their academic qualifications that prepare them for challenging future roles and responsibilities. Financial assistance covers 70% of the total course fees with employees bearing the remaining 30%. The programme is open to all employees who meet the prerequisites.

Throughout the six months, participants from different Operating Companies worked together on specific action learning projects ascertained by their respective Managing Directors. The projects were scoped based on real-life business issues and participants were asked to present their ideas to the judging panel at the end of the programme.

The projects encapsulated a variety of topics such as International Expansion (PLUS), Affordable Homes (UEM Sunrise), Optimising Value Chain (CIMA) and Customer Centricity (UEM Edgenta).

LeAP1 Candidates from UEM Group of Companies

Organisation No. of Candidates

UEM Group 3

PLUS 5

UEM Sunrise 5

UEM Builders 0

CIMA 3

UEM Edgenta 3

Continuing Education Programme (CEP)

CEP was established for employees wishing to pursue part-time education. UEM Group provides financial assistance to employees who wish to pursue professional qualifications.

Professional Qualifications Eligible Under CEP

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Completed four years of full-time employment

Achieved PMS rating of 3 or 60% and above on performance management system evaluations throughout the employment period

Selected programmes must be relevant to the employee’s job responsibilities and company’s business needs

CEP application can only be considered once throughout the entire employment period

UEM Group received a total of 39 and 18 applications in 2015 and 2016 respectively. Examples of courses that our employees applied for are presented below.

Young Engineer Programme (YEP) and Young Graduate Programme (YGP)

YEP is a five-year structured development programme that provides high-potential professionals with the required professional qualifications. As professional engineers, it also helps them attain technical competencies and accreditation as required by the Board of Institute Engineers of Malaysia (IEM).

YGP is a three-year programme that helps high-potential graduates attain required competencies such as strong strategic thinking skills for UEM Group’s leadership pipeline in areas such as business development, finance, accounting and human resource.

Bachelor of Mass Communications and Public Relations

Bachelor of Occupational Health and Safety Management with Honours

Bachelor of Science

Chartered Certified Accountants

Diploma in Management

Master of Business Administration

Master of Science in Highway Engineering

Master in Highway and Transportation

Association of Chartered Certified Accountant

Bachelor of Banking and Finance with Honours

Bachelor of Computer Science

CEP Prerequisites

1 2 3 4

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The two programmes complement existing leadership initiatives such as the ELP and LeAP. Graduates employed under YEP and YGP are mentored by senior management personnel and work alongside experienced employees through cross-assignments and job rotation. Both programmes also focus on developing skills in strategic thinking and leadership in addition to imparting technical knowledge.

The 74 and 92 individuals under the YEP and YGP’s pilot batch in 2015 and 2016 consisted of fresh graduates and Yayasan UEM scholars.

BREAKDOWN OF YEP AND YGP CANDIDATES

100

80

60

40

20

0

Yayasan UEM Scholars

Assigned to various companies within UEM Group, they are rotated annually and learn soft, management and leadership skills. Young employees under YEP and YGP also acquire the required technical competencies and qualifications such as the Board of Institute Engineers of Malaysia, Project Management Institute and Association of Chartered Certified Accountants.

Retirement Coaching

Retirement is much different today than in previous years when traditional pensions were common. Today, the responsibility of preparing for a secure retirement often rests with the employee.

UEM Group recognises its responsibilities as an employer and offers retirement coaching as part of its benefits package. Championed by the UEM Learning Centre, our Harness, Educate, Attitude, Readiness and Timeline (H.E.A.R.T) Retirement Programme helps future retirees cope with their retirement and financial planning.

EMPLOYEE ENGAGEMENT

Keeping our employees engaged and encouraging them to stay connected with their peers and communities are key components of our people strategy. Timely and efficient communication with our workforce is important. A range of channels is used to connect with employees with differing competencies, experience and interests.

We communicate with employees in a number of ways such as newsletters, the Intranet, email blasts and printed notices displayed around the companies. Employees are also being kept up-to-date through Yammer, a private social media platform, which connects people and information across UEM Group of Companies. The UEM Group Human Resource Department has recently introduced askHR and Employee Assistance Programme to enable employees to reach out to the Human Resource Department for any work-related concerns and feedback. askHR operates similar to a help-desk with a dedicated email address for employees.

However, we are also conscious that many of our employees work outdoors where the internet may not be readily available. Alternative communication channels are provided to these employees such as printed notices.

2015 2016

Fresh Graduates

56

36

13

61



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Employee Engagement Activities

UEM Group of Companies is committed to keeping its workforce engaged and motivated to be part of the Group. We value diversity at every level of our organisation and respect the rights of all of our employees. Employees are equipped to be more engaged and happy in their working environment which improves the quality of their work-life experience.

We hold regular formal and informal engagement between employees and the management across UEM Group of Companies. Team leaders deliver regular face-to-face employee briefings that allow employees to give feedback.

Regular engagement channels held within the Group include townhall sessions, email messages, festive video messages and ad-hoc messages from the top management. Other engagement sessions held in 2015 and 2016 are summarised on the following page.

• Taking care of one’s physical body

• Maintaining a regular fitness routine and practicing a healthy balanced diet

• Preparing to meet retirement-income goals to sustain/achieve a certain standard of living

• Being aware of one’s thoughts and feelings

• Making choices for a positive

(mental) attitude• Acknowledging and

recognising feelings

• Evaluating the state of financial well-being

• Having an understanding of one’s financial situation and preparing for financial changes

• Creating a work environment that is conducive and supports the needs of employees

• Providing occupational wellness through growth and development opportunities

Live Well, Work Well, Spend Well (LWS)

Acting on feedback received from the Employee Engagement Survey (EES) and caring for our employee holistically, the new LWS campaign promotes work-life integration. The large LWS umbrella consists of five wellness components that promote wellness holistically:

EDGE20

In January 2016, UEM Edgenta reinforced its corporate culture integration efforts with the launch of EDGE20 – a programme designed to redefine the way employees work at UEM Edgenta, challenging them to reach greater heights and achieve the company’s ambitions and growth targets by 2020. More than 96 company-wide training sessions were held and attended by 3,860 employees. A combination of mini lecturers, indoor and outdoor team building activities along with experiential learning involving group and individual exercises were held.

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Trekking to Sungai Pisang

50 UEM Group employees took part in a trek to Sungai Pisang. The event was organised by the Group Human Capital in collaboration with the Kelab Sukan & Rekreasi UEM Group on 22 October 2016. Programme highlights included waterfall abseiling and fly as well as fall zipline activities that helped the participants overcome their fear of heights.

Monsoon Camp

On 10 and 11 December 2016, 50 UEM Group employees took part in the Monsoon Camp. The Camp was organised by the Group Human Capital in collaboration with the Kelab Sukan & Rekreasi UEM Group. The programme’s highlights, white water rafting and river tubing, challenged participants to overcome their potamophobia, or fear of running water.

Bring Your Kids to Work (BYOK) Programme

BYOK is a three-day fun-filled activity for children aged between four and 15 years. This programme promotes work-life integration while providing an opportunity to inspire young minds about future careers. Held from 14 to 16 December 2016, activities included modelling and printing for 10 to 15 year olds; a robotics workshop for seven to ten year olds; and Fri-Yay! for four to six year olds.

Pink October Day

On 31 October 2016, UEM Group Human Capital hosted Pink October Day in honour of the last day of Breast Cancer Awareness Month. Professor Dr. Teo Soo-Hwang, CEO of Cancer Research Malaysia, gave a talk during the event. 500 pink ribbons and ice creams were also distributed after the talk.



UEM Sports Carnival

The UEM Group Sports Carnival 2015 was held from 5 to 17 May 2015. Representatives from UEM Group of Companies competed in several football, futsal, netball, badminton, table tennis, bowling and volleyball tournaments.

The winners were announced on 17 May 2015 at Sunway Lagoon in conjunction with the UEM Group Family Carnival. Over 18,000 employees and their family members were present at the fun-filled day and were entertained by tele-matches and exciting rides at the theme park.

The UEM Sports and Family Carnival 2015 was another example of our efforts to develop a ‘One Company, One Heart, One Soul’ spirit in our employees.

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National Day Celebration

On 31 August 2015, UEM Group participated in the annual National Day celebrations at Dataran Merdeka in Kuala Lumpur. UEM Group employees formed part of the 600 contingent from other Government-Linked Companies.

40 CIMA employees took part in the Perlis state-level National Day celebrations held on the same day at Dataran Merdeka in Kangar.

Kolam Competition

UEM Group celebrated the Festival of Lights with a Kolam competition on 19 October 2016. 10 teams from across UEM Group of Companies competed in the inter-company competition, themed ‘Festival of Lights’. This activity formed part of the Group’s mission to foster an inclusive and diverse workplace.

Team AUM and Team Masalas of UEM Sunrise won first and third prizes for their entries, winning RM1,500 and RM800 respectively. UEM Edgenta’s Team United Colours won second prize and RM1,000 in cash.

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UEM Group of Companies Employee Engagement Activities

2015 2016

PLU

S

• PLUS World Health Day 2015• Mission Slimpossible 2015• Ceramah Agama• Sports Day• PLUS 10 Pin Bowling Tournament 2015

• PLUS World Health Day 2016• Jamuan 1st Syawal with Senior Management at

selected toll plazas• Inter-departmental, Inter-section, Inter-Region

Games 2016• Northern, Central and Southern Region Health and

Safety Programmes

UEM

Su

nris

e • Future Talent Engagement Programme

• UEM Sunrise Fun Run Nusajaya 2015• Festive Celebrations

• UEM Sunrise MasterChef Baking Class• My Voice Session• UEM Sunrise Bowling Tournament• Living Well, Work Well and Spent Well

UEM

Ed

gent

a

• “We Are One” Townhall sessions• UEM Group’s Family Carnival 2015 at Sunway

Lagoon• Million Steps Challenge• Healthy Living Tips

• EDGE20• “Huddle” townhall sessions• Chat with MD/CEO• IDEAZONE• Brown Bag sessions• Edgenta Young Star Programme• Semarak Raya• Fitness with a Purpose Challenge

CIM

A

• SHE – Gotong Royong programme with employees to clean up the Perlis Plant and Negeri Sembilan Plant.

• The CIMA’s Biggest Loser programme.• CIMA’s internal sports carnival.• Hari Raya Open House at Perlis and Bahau Plant.• CIMA Townhall sessions and Staff Children

Excellence Awards at CIMA’s Headquarters, Perlis and Bahau.

• CIMA Perlis Employees participated in a Merdeka Parade.

• CIMA Health Awareness Campaign 2015 in Central, Perlis and Bahau, Negeri Sembilan.

• Harumanis Adventure Trail Run 2015 – CIMA Perlis’ staff participation.

• Gotong Royong programme to repair an employee’s house which had been destroyed by a storm.

• SHE Perlis in collaboration with Perlis’ Department of Environment (DOE) organised a telematch game named “EnviroBingo” in conjunction with Minggu Alam Sekitar Malaysia Perlis 2015.

• CIMA Town Hall sessions and Staff Children Excellence Awards at CIMA Headquarters, Perlis and Bahau.

• Hari Raya Open House with employees at Central, Bahau, Perlis Plant.

• Gotong Royong programme in conjunction with Aidiladha in Bahau, Perlis, Kuang and Kuad.

• CIMA Perlis employees participated in a Merdeka Parade.

• OSHE Week at Bahau and Perlis Plant.• SHE Perlis, in collaboration with Perlis’ Department

of Environment (DOE), organised a telematch game named “EnviroBingo” in conjunction with Minggu Alam Sekitar Malaysia Perlis 2016.

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107UEM GROUP BERHAD


SAFETY CULTURE

UEM Group believes that safety goes beyond regulatory compliance; safety is a culture of caring. While safe workplace conditions must be maintained and compliance assured, we have to also go beyond physical safety. Our safety culture is a partnership where management and employees share knowledge and decision making to improve the working environment.

The Group Environmental, Health and Safety (EHS) policy articulates our commitment to building a workplace that protects the mental and physical well-being of the workforce and encourages the implementation of best practices. The policy is explained to our contract workforce during their induction training and periodically reviewed by senior management. Subcontractors’ safety capabilities are evaluated before contracts are awarded. Compliance with the policy is enforced through regular training, site visits and audits. The EHS framework helps translate our EHS policy into practice at project sites and offices. It is deployed across the Group through procedures, guidelines and manuals.

54.94% of UEM Group’s operations are

OHSAS 18001 certified.

UEM Group Occupational Safety & Health Policy Statement

UEM Group Berhad is committed to protecting the Safety & Health of our employees, customers, and the communities where we operate. It is our intent to demonstrate an ongoing and determined commitment to improving Safety & Health at work throughout our organisation in meeting or exceeding all applicable Safety & Health requirements locally or internationally (where relevant).

We recognise that by integrating sound Health & Safety management practices into aspects of our business, it will contribute to the success of the organisation in delivering innovative products and services to customers without exposure to risks that might be fundamentally acceptable.

Guiding Principles:

• Ensure all employees are aware of their role and responsibility to fulfill and sustain UEM Group’s Safety & Health management systems and policies.

• Communicate Safety & Health policies and programmes to all employees and others. Provide training and resources when necessary.

• Incorporate Safety & Health best practices in all work activities.

• Manage and control hazards and risks associated with our products, services, operations, processes and facilities at the workplace.

• Advocate the adoption of prudent Safety & Health principles and practices by our service providers, vendors and suppliers.

This policy will be reviewed periodically in accordance with UEM Group’s commitment to continuous improvement in Safety & Health management.

Dato’ Izzaddin Idris Group Managing Director/Chief Executive Officer 20 October 2010

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2015 2016 2017 2018 2019 2020HSE Tools - JHA, PTW, RAM

HSE Assurance - Audit & Review

Risk Management Processes - MOC

Turun Padang (Go & See)

Staff Engagement

Leader Standard Work

Front Line Staff

Front Line Supervisory Staff

HSE Leaders & Professionals

Reporting & Review

Root Cause Analysis

Learning From Incident

Pre-Tender Screening

Contract Management

Contractor EngagementCont

ract

or

HSE

M

anag

emen

t

Inci

dent

M

anag

emen

tH

SE

Com

pete

nce

Visi

ble

HSE

Le

ader

ship

Safe

Sys

tem

of

Wor

k

UEM Group’s HSSE Department was established to focus on safe systems at work, visible HSE leadership, HSE competence, incident management and contractor HSE management. The HSSE Head is responsible for monitoring UEM Group of Companies’ progress against the five-year HSE Culture Transformation Programme.

GOAL Zero - HSE Culture Transformation Journey

SAFETY INITIATIVES

Our goal is for every employee to go home safe, uninjured and in good health after every shift. We believe that there is always a safe and healthy way to do every job.

We implement safety and health programmes in all our Operating Companies. We expect all employees and contractors to work in accordance with these safety and occupational health management policies, for the benefit of all our colleagues, families, communities and businesses.

Our health and safety systems provide the equipment, training and resources necessary to allow employees to perform their work safely without risking their health.

UEM Group

Disaster Relief and Safety Training

On 7 May 2016, UEM Group organised Disaster Relief and Safety Training for UEM ALERT volunteers. The training session, conducted by the Malaysian Civil Defence Department, was attended by 25 participants. Throughout the one-day training session, participants learnt basic safety and survival skills and how to prepare themselves mentally and emotionally before undertaking any disaster relief initiatives. They also received guidelines explaining how to respond during times of disaster and emergency.

Health and Safety Audits

The internal health and safety audit is an integral part of the company culture. These audits adhere to the legal requirements and are implemented and maintained by each employee. Five HSE audits have been conducted over the past two years.

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109UEM GROUP BERHAD


In August 2016, PLUS established a HSSE Department to oversee the overall identified HSSE key focus areas in order to further improve and embed safety culture by initiating various HSSE approach, programme and initiatives as agreed in the HSSE Handshake Meeting between UEM Group Special HSSE Task Force Team and Top Management of PLUS & UEM Edgenta. Guided UEM Group HSSE 6 Key Focus Areas are as follows:-1. Visible and Felt HSSE Leadership;2. Safe Systems of Work;3. HSSE Competence Management;4. HSSE Incident Management;5. Contractor HSSE Management; and6. Road Transport Safety.

UEM Sunrise

UEM Sunrise reviews its health and safety policies each year. Measures to minimise health and safety related incidents includeinduction training; monthly Quality Assurance Safety, Health and Environment (QASHE) Committee meetings; weekly toolbox briefings and a QASHE campaign.

CIMA

CIMA continued to take bold steps to ensure compliance with OHSAS 18001. All new CIMA contractors must attend a Safety and Health Induction organised by the Safety and Health Department from Negeri Sembilan Cement Industries (NSCI). Compliance with the safe work practices stated in the Company Safety and Health Manual and the Plant and Equipment Manual is the primary responsibility of all employees, contractors and consultants performing duties at NSCI premises.

CIMA has also established its own Emergency Response Team (ERT) which prepares for and responds to any emergency such as occupational incidents, natural disasters or interruption of business operations.

UEM Edgenta

UEM Edgenta’s 3Es Approach to Health, Safety and Environmental (HSE) Management comprises Engineering, Education and Enforcement. In 2014, UEM Edgenta implemented the Propel Safety Passport (PSP), Malaysia’s first occupational safety and health ‘passport’ for highway maintenance. This programme is a collaboration between Edgenta PROPEL and the National Institute of Occupational Safety and Health (NIOSH).

PLUS

PLUS aims to secure and protect employees and other interested parties on occupational safety and health by aggressively creating awareness via its continuous commitment to prevent injuries, occupational illness and environmental incident at workplace and ensure public safety when carrying out its business.

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Details of Health and Safety Audits

Date Audit Venue

2015

1 – 3 July Kamunting Incinerator & Laundry Plant

26 October – 28 October UEM Sunrise

26 October – 31 November UEM Sunrise

2016

5 – 10 December CIMA Perlis

19 – 24 December CIMA Bahau

HSSE Team Workshop

Our HSSE team organises various workshops for relevant personnel to ensure they are aware of their job hazards and ways to perform their work safely. Eight HSSE Team workshops were conducted in 2015 and 2016.

Details of HSSE Team Workshop

Date Audit Venue

2015

Accident investigation specialist (road transport accident reconstruction)

7 October

Accident investigation specialist (road transport accident reconstruction)

15 December

HSE Internal Audit Competency 16 – 20 November

2016

HSE Master Plan Launching 5 February

Confined space fatality incident investigation

27 February – 4 March

Process safety issue and verification audit

25 – 29 March

Forklift fatality incident investigation 6 – 9 June



SOCIAL: PRODUCT RESPONSIBILITY

Operating responsibly in all aspects is always a high priority for UEM Group. We attach great importance on assessing our operations lifecycle as a whole. We set standards, monitor our processes throughout the entire lifecycle and communicate the added value to our stakeholders.

QUALITY MANAGEMENT

Quality management is emphasised in all processes throughout the supply chain. UEM Group of Companies recognises the value of product quality, effective prevention and continual improvement to maintain the highest level of customer service. We strive to meet these objectives by adhering to established industrial and regulatory standards.

Our minimum quality requirements across all operating companies include:

• Operating within a well-defined quality system• Providing all personnel with comprehensive quality maintenance training • Continuous improvement and innovation• Monitoring and benchmarking our performance

All Operating Companies across the Group have established, documented, implemented and maintained Quality Management Systems (QMS) and have been continually improving their effectiveness in accordance with the requirement of ISO 9001 standards. A QMS manages activities related to customer requirements that can help organisations improve customer satisfaction.

Product responsibility areas identified for continuous improvement by each company vary according to the type of businesses.

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More than 90% of UEM Edgenta PROPEL’s operations employees have attended the programme as at 31 December 2016.

UEM Edgenta also enhanced the safety features of Edgenta PROPEL’s Intervention Team (PIT) and service vehicles in 2016. Larger beacons and chevron directional lights improve visibility and the safety of workers, especially when working at night. UEM Edgenta implements Traffic Management Plans as per Malaysian Highway Authority guidelines to provide a Safe Work Zone for workers. UEM Edgenta also conducts continuous safety awareness briefings and safety simulation training for its employees and contractors.

Group-wide Safety Performance

2015 2016

Total recordable injury frequency rate

241 175

Lost Time Injury frequency (No. of cases)

93 93

Fatal accident rate (No. of cases)

9 11

Occupational diseases rate

4 3

Lost day rate 1,320 1,340

111UEM GROUP BERHAD


UEM Group of Companies complies with ISO 9001, ISO 14001 and OHSAS 18001

standards. 52.94% of our operations are covered

by ISO 14001, 54.94%

by OHSAS 18001 and 82% by ISO 9001 certifications.

Edgenta Mediserve is the first leading concession company to obtain all four Management Systems — ISO 9001, ISO 14001, OHSAS 18001 and ISO 13485 — which are required by the new Concession Agreement, 12 months ahead of time.

ISO 9001 Quality Management System

PLUS Headquarters and all processes under PLUS

Focus on development services of UEM Sunrise

UEM Builders Headquarters in Petaling Jaya

• Cement Plant in Bahau, Negeri Sembilan• Cement Plant in NSCI, Perlis

• Opus International (M) Berhad• Edgenta Mediserve Sdn Bhd (HQ and all sites as well as

Edgenta Healthronics Sdn Bhd)• Edgenta PROPEL Berhad• Edgenta Environmental & Material Testing Sdn Bhd

Coverage

PLUS

PLUS has implemented a structured maintenance regime that preserves its assets by improving operational efficiency and road quality. Maintenance preserves the original function, geometric and structural condition of the expressway, improving and maintaining both the quality and service level for expressway users.

Each year, PLUS invests approximately RM1 billion in maintaining its highway assets. This is a testament to PLUS’ promise to never compromise highway users’ safety and comfort. Accordingly, PLUS has adopted a maintenance strategy that covers Routine, Curative and Preventive maintenance.

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CIMA

CIMA’s products, such as its cement, aggregate and pre-mix brands, comply with the Code of Practice for Building Operation and are certified in accordance with the relevant Malaysian, European, American and Singaporean Standards. CIMA continuously assesses, analyses and improves its Quality Management System. Improvement activities include regular internal audits and identifying and controlling non-conforming products to prevent their unintended use or delivery.

Customer feedback is an important performance indicator. Learning about customers’ needs and our performance allows us to make necessary changes for the betterment of all. Feedback channels used by UEM Group of Companies include:

• Annual customer satisfaction surveys• Communication • Social media channels• General interaction

The general procedure in addressing customers’ feedback begins with investigating the validity of feedback or complaints. An action plan is then formulated to address these shortcomings with details of the complaint, investigations, action taken and subsequent results being recorded.

CUSTOMER SATISFACTION

Our customers decide what excellent customer experience is.

Repetitive, cyclical or periodic works such as landscaping, grass cutting, drainage, bridge parapets, road furniture, buildings, mechanical and electronic equipment

Routine Maintenance

Curative Maintenance

Repair works that address defects while maintaining safety, serviceability and the structural integrity of the highways such as repairs to pavements, bridges, slopes, embankments, drainage, structures and tunnels

Preventive Maintenance

Improving, preserving or minimising the deterioration of defects by planning works to maximise the design life of the assets and facilities

UEM Sunrise

In addition to implementing 5S and Six Sigma, UEM Sunrise also performs periodic quality assessment such as the Quality Assessment System in Construction (QLASSIC) and the Construction Quality Assessment System (CONQUAS). These assessments incentivise the Company to set international-grade quality and workmanship standards throughout its projects and products.

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113UEM GROUP BERHAD


The Penang Bridge

The Secondlink

The Seremban-Port Dickson

Highway (SPDH)

The Butterworth-Kulim Expressway

(BKE)

North-South Expressway

(NSE)

New Klang Valley

Expressway (NKVE)

Federal Highway Route

2 (FHR2)

ELITE Highway

ROADS SERVED BY TMC

HIGHWAY MANAGEMENT

TOLL PLAZA MANAGEMENT

LAY-BY MANAGEMENTRONDA SERVICES

REST AND SERVICE AREA MANAGEMENT

Areas Assessed by PLUS CSI Survey

The survey results are used as a benchmark for service satisfaction levels and strategising improvement initiatives so better services can be provided. PLUS achieved a CSI result of 82.6 in 2016, which is 0.8 higher than the previous year’s result of 81.8. The global acceptance range of CSI between 80 and 100 is considered ‘very satisfied’.

UEM Sunrise

UEM Sunrise’s Customer Satisfaction Survey gauges customer satisfaction levels at all touch points. An independent consultant is appointed to execute the survey to ensure impartiality. The survey was conducted through various platforms and was distributed online through mail drop and Focus Group Discussions (FGDs). It concentrated on projects that had been launched and handed over in the past two years.

Customer loyalty is derived from the average score achieved across three elements: corporate reputation, product quality and offerings, and customer experience. The satisfaction survey conducted in 2016 showed that customers are happy with their experience and will recommend UEM Sunrise to friends and family.

CIMA

CIMA’s annual Customer Satisfaction Survey measures the company’s performance in the four areas of product quality, order processing, packing and delivery service. CIMA has implemented a clear Customer Relationship Management (CRM) system that is appropriate for the size of its operations. Customers can direct all technical correspondence – such as queries, product

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feedback, complaints, customer satisfaction and the handling of customer related matters – to the Head of Marketing. Commercial correspondence such as pricing, contracts, amendments and terms and conditions can also be directed to the Head of Marketing. In 2016, CIMA achieved an overall satisfaction score of 79%, which is consistent with its 2015 results.

OUR VALUE-ADDED COMMITMENT TO THE PUBLIC

UEM Group leverages on its size and diversity to create a more sustainable and responsible world. Collaborative efforts by our brands, product teams and innovation identify the most promising opportunities to play a role in this society. Through these efforts, our companies can truly become agents of positive change.

PLUS

Traffic Monitoring Centre (TMC) for Greater Efficiency

PLUS’ TMC plays a vital role as a traffic management hub for expressways. Operating 24 hours a day, it covers more than 60% of all tolled highways in the country. Each year, more than 500,000 calls are managed by between 45 and 55 operating staff on duty each day. The centre efficiently manages traffic by collecting and disseminating real-time traffic information and coordinating assistance for highway users. TMC also liaises with the relevant authorities such as the police, fire department and ambulance service.

PLUS

Periodically, PLUS conducts a Customer Satisfaction Index (CSI) survey to ascertain customer preferences in the five main expressway service areas.



RSAs Upgraded in 2015 and 2016

2015

2016

• Ladang Bikam Lay-by Northbound and Southbound (toilet and parking)

• Tapah RSA Northbound (water supply system)

• Ayer Keroh RSA Southbound (foodcourt, toilet, surau and ancillary facilities)

• Machap RSA Southbound (toilet and water supply system)

• Tapah RSA Southbound (water supply system)

• Bukit Gantang Lay-by Northbound (surau, foodcourt, ancillary facilities, parking and ingress road widening)

• Senawang Lay-by Northbound (toilet, surau, ancillary facilities and parking)

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Comfort at PLUS’ Rest and Service Areas (RSAs)

PLUS’ RSAs are well maintained, providing travellers with facilities as they take a break during their long distance trips. Positioned every 50 to 100km, RSAs are continuously upgraded and improved. Particular attention is paid to hygiene and the cleanliness of toilets and food stalls.

Several of PLUS’ facilities offer more than a mere pit stop for weary travellers; they are equipped with a children’s playground, petrol stations, a surau, rest shelters, public telephones, air-conditioned restaurants and other amenities. Currently, there are 24 RSAs on PLUS Expressways’ network.

In an effort to provide a more convenient public travel experience, PLUS has upgraded several of its RSAs including its suraus, food courts and toilets during 2015 and 2016. RM25 million was allocated for upgrading RSAs and lay-bys in 2016 alone. More than RM260 million has been spent on this ongoing cause since 2005.

115UEM GROUP BERHAD


PLUSMobile

PLUSMobile Apps were first introduced in January 2014 to deliver real-time traffic information on PLUS highways directly to highway users’ smartphones or tablets. Information provided covers toll plazas, RSAs and lay-bys and live traffic. The app also features the recently introduced SOS button for emergency assistance.The up-to-date apps have been downloaded by 1.05 million users with more than 300,000 active users and 78.4 million screen views. PLUSMobile apps are highly regarded by those travelling along the North-South highway. iPhone and iPad users can download the free PLUSMobile App from the App Store and Android users can obtain it from Google Play.

Travel Time Advisory (TTA)

TTA is a travel advisory created to help highway users’ plan their journeys and distribute traffic on the mainline. Since 2008, PLUS have issued the TTA to distribute traffic and prevent vehicles from converging at the same location and time, which contributes to traffic congestion on the mainline. If followed, TTA results in smoother traffic flow during the festive season.

UEM Sunrise

UEM Sunrise’s developments support families’ daily and future lives as we grow together. In delivering its vision of ‘Building communities of the future with you and for you’, UEM Sunrise continues to create sustainable environments loved by homeowners by maintaining valuable relationships with them.

UEM Sunrise continued to champion various engagement activities with its tenants to improve their living experience. Key events included festival celebrations for Chinese New Year, Hari Raya Aidilfitri, Mid-autumn Festival, Deepavali, Christmas and New Year’s Eve.

UEM Sunrise also held welcome parties for new residents, especially international tenants, to introduce them to Malaysia’s culture and cuisine. Gathering events, games and fun times are held together throughout the year to nurture relationships between residents and the management. Fun activities held during the year included ‘gold friendly’, ‘wizard of fun zone’, ‘Borneo culture day’ and ‘Bollywood glitz of lights’.

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CIMA

CIMA’s Mobile Laboratory

CIMA provides excellent customer service and technical solutions to its customers, specifically its end users. CIMA established a mobile laboratory where lab services are made available at construction sites.

This innovative concept aims to support clientele through all stages of construction as CIMA’s lab team is present to assist with issues relating to concrete quality, optimisation of mix design and cost saving practices.

Customers have immediate access to trained service engineers who are on hand to provide technical advice on the best use of cement and raw materials.

This unique customer service initiative allows the mobile lab’s technical support representatives to work directly with CIMA’s customers by:

• Visiting them at their project sites• Carrying out construction/job site investigations and

handling customer complaints• Providing site training on cement and concrete applications• Gathering direct feedback for new products and innovations• Demonstrating products such as masonry works and

plastering• Assisting in the testing of the quality of concrete and concrete

materials, concrete mixing and aggregates• Assisting in the formulation of mix designs, trial mix and

monitoring of concrete application at site

UEM Edgenta

Expanded Sustainability Programme

Under the new Hospital Support Services Concession Agreement, UEM Edgenta is providing additional services under a Sustainability Programme, which focuses on water management, indoor air quality, energy efficiency and the 3Rs of Reduce, Reuse and Recycle.

Environmental consideration is also given to our sewerage treatment plants (STPs) to ensure sewage is treated effectively to minimise river pollution. Chemical discharges from building services are also treated by our STPs before being safely discharged into local waterways.

Prioritising Public Safety

PLUS

PLUS Road Safety

PLUS has carried out the Accident Prevention Programmes as well as the Accident Reduction Programme as part of the initiatives to ensure the safety of drivers and passengers for an average of 1.40 million vehicles plying the North-South Expressway daily.

The Road Safety Audit (RSA) under the Accident Prevention Programme is a formal safety performance inspection conducted by an independent and multi-disciplinary team of auditors. The objectives of RSA are to identify potential safety hazards on the expressways so that they can be eliminated or treated to mitigate their adverse effects to ensure the expressways are capable of providing the highest standard of traffic safety for users. RSA is conducted by PLUS at selected stretches along expressways in three-yearly intervals.

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117UEM GROUP BERHAD


Over the years, PLUS has upgraded and strengthened the barrier system along the expressway at New Jersey Barrier, W-Beam Guardrail, Bridge Railing and Median Opening to improve their safety features. To prevent illegal crossing on the expressway, Anti-climb Fencing, ROW Fencing, Electric Fencing and Concrete Fencing were upgraded and installed at selected locations along the expressway. Concurrently, installing reflective stickers, road studs and chevron signs have increased visibility and improved night-time driving conditions.

Under the Accident Reduction Programmes, an Annual Accident Blackspot Investigation and Countermeasures were carried out to reduce accidents at prone areas. Analysing accident records and diagnosing accident prone locations helped identify the root cause of accidents in order to propose counter measures. PLUS monitors the effectiveness of the proposed counter measures in reducing accidents.

As safety of our customers is a top priority, PLUS is committed to undertaking continuous improvement initiatives that enhance expressway safety. The installation of rumble strips, anti-skid pavements, linear delineator systems and high-performance road markings were extended to other suitable locations along the expressways.

PLUSRonda

Established on 1 April 1990, PLUSRonda is the familiar name for PLUS’ team of dedicated personnel whose primary task is patrolling our expressways and attending to customers in need of assistance.

Available 24 hours a day, 365 days a year, PLUSRonda services reflect our commitment to providing a safer and more convenient choice for travellers.

PLUSRonda Services

Traffic management and coordination of emergency services

Minor repairs to vehicles experiencing a mechanical fault or breakdown

Towing services to the nearest toll plaza or RSA (for Class 1 vehicles only)

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PLUS’ Malaysia Unite for Road Safety (MUFORS) Campaign

PLUS launched the Malaysian Unite for Road Safety (MUFORS) initiative in 2009. The programme raises road safety awareness and uses various novel approaches to educating current and future drivers. MUFORS encourages Malaysians from all walks of life to take ownership of road safety and ask themselves “what is my role in promoting road safety and saving lives”.

These awareness campaigns target university students, heavy vehicle drivers, owners and fleet operators.

Featuring MUFORS Gallery

In 2010, PLUS established the MUFORS Gallery with the Ministry of Works, the Malaysian Highway Authority, the Police, AAM, the Road Safety Department (JKJR) and Malaysian Institute of Road Safety and Research (MIROS). This exclusive road safety centre complements PLUS’ commitment to adding value to highway users’ driving experience.

Located at the USJ RSA on the ELITE highway, the gallery disseminates road safety information to the public with exhibitions by various partners. The audio-visual room screens road safety videos and short films. The gallery is now one of the most sought after venues for road safety programmes.

MUFORS Inter-School Mural Competition

Held on 5 August 2015, the MUFORS Inter-School Mural Competition offered 50 shortlisted secondary schools a chance to win cash prizes amounting to RM120,000 while reinforcing road safety messages to students, parents and the public. The competition was held in collaboration with the Co-curricular & Arts Division of the Ministry of Education Malaysia. Themed “Pesanan Dari Kami Generasi Muda untuk Keselamatan Bersama”, the competition is one of the initiatives under the MUFORS flagship spearheaded by PLUS since 2009.

Since its inception, 200 schools across the country have been painted with murals containing road safety messages. The initiative raised awareness and inculcated a culture of road safety in the community at large. Students, schools, parents and the surrounding community were involved in the project.

Every year, we witness enthusiasm and creativity from the participating schools. In 2015, the use of 3D art helped produce more interesting and attractive murals. Sekolah Menengah Kebangsaan Tinggi Kluang in Johor emerged as the winner of PLUS’ MUFORS Inter-School Mural Competition 2015, followed with Sekolah Menengah Kebangsaan Seksyen 16, Shah Alam and Sekolah Menengah Kebangsaan Agama (P) Alawiyah.

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119UEM GROUP BERHAD


Edgenta Mediserve (EMSB) Collaboration with Jabatan Siasatan Jenayah Narkotik (JSJN) for a Safe Disposal of Drugs

EMSB Kamunting Incineration Plant collaborated with Jabatan Siasatan Jenayah Narkotik (JSJN) in disposing of RM2.8 million worth of confiscated drugs on 20 October 2016. The event was led by V.R. Ravi Chandran, Head and Assistant Commissioner of JSJN Perak; Ahmad Zamri Said, Managing Director of EMSB; officials from JSJN; and the Operations Team from EMSB. The heroin, marijuana, cocaine, ketamine, ecstasy, eramine and other drugs had been seized by JSJN in 14 districts in Perak and cleared by the court over a period of 10 to 15 years.

Gempak MUFORS 2005 and 2016

Gempak MUFORS is a road safety seminar for young motorcyclists by PLUS. It is a platform to educate the public on safe riding skills on roads and highways. The programme combined theory and practical sessions for participants. A total of 1,800 participants attended the programme that targeted youths and students from universities and colleges. In 2016, GEMPAK MUFORS collaborated with the Traffic Department of Polis DiRaja Malaysia (PDRM) and reached out to youths in Felda settlements and the East Coast.

Speedway PLUS Go-Kart Circuit

Go-karting is one of PLUS’ initiatives to educate current and future drivers on the importance of discipline. It teaches drivers to respect the limits of their vehicles and their own capabilities. Go-karting applies strict rules and guidelines which relate closely to road safety.

The Speedway PLUS Circuit is also one of the Company’s strategies to promote this fledgling motorsport industry and develop future motorsport champions for the nation. The Circuit played a significant role in developing international and local karting champions such as Jazeman Firhan Jaafar and Nabil Jeffri.

At 990m long, the Speedway PLUS Circuit in USJ, Subang is one of the most heavily utilised tracks for race events in Malaysia.

UEM Sunrise

As part of its Community Policing Initiative, UEM Sunrise organised a Community Engagement Programme in collaboration with the PDRM for the tenants of Publika on 16 March 2016. Jointly led by UEM Sunrise’s Security Department and Retail & Assets Management Department, the programme raised awareness of crime prevention and encouraged feedback from tenants.

The event was graced by YDH Tuan Superintendent Roslan Zainuddin, Officer of the Department of Crime Prevention and Community Safety from the PDRM, Kuala Lumpur.

UEM Edgenta

Spray Jet with Very Thin Overlay (VTO) for Workers, Subcontractors and Highway Users’ Safety

In October 2015, UEM Edgenta introduced the Spray Jet with Very Thin Overlay (VTO), the first of its kind in Malaysia. This German technology is an innovative and sustainable approach to pavement preservation and maintenance, that also enhances ‘rideability’ and safety for road users and highway maintenance workers.

This road rehabilitation method extends the road’s economic life by optimising the use of premix material. This approach has a positive long-term effect on the environment and produces less noise. This method has a minimal effect on road traffic as rehabilitation works are completed more quickly which further improves the safety of workers and road users. It is the most economic, innovative and sustainable approach to pavement preservation and maintenance.

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UEM GROUP SUSTAINABILITY PLEDGE - MOVING FORWARD

Sustainability is a critical part of the strategic plans of each of our businesses. It does not end there. It is also a key element of our innovation and planning to ensure our new products and services create shareholder value and support a more sustainable world. UEM Group’s enhanced sustainability policy and long-term sustainability goals hold us accountable for addressing major global challenges including climate change, society gaps, inequality and land resources.

Recent developments in climate change have increased the urgency for companies to shift from idealism to concrete action. Buildings consume approximately 50% of electricity produced in the world. For us, the majority of emissions come from burning fossil fuels to power our buildings, operations and long-term maintenance. UEM Group of Companies supports the Malaysian Carbon Reduction and Environmental Sustainability Tool (MyCREST) which guides, assists, quantifies and reduces the built environments’ environmental and emissions impact. By aligning our environmental efforts with MyCREST objectives, we integrate socio-economic considerations in our built environment and urban development. Moving forward, UEM Group of Companies will implement the MyCREST sustainable building rating systems to assess all buildings based on current data.

As a major business presence in our communities, we take our responsibilities related to diversity, sustainability, disparities and corporate leadership very seriously as they directly link to the values of the Group. We work continuously to take tangible, visible and actionable steps to promote a more diverse population and workforce, a more environmentally-responsible strategic direction and an overall healthier community. Shared personal values give us the strength as a team to act responsibly and appropriately when unpredictable or devastating events call for action. As a large employer, we serve as an economic contributor and catalyst in communities across our service region.

121UEM GROUP BERHAD


GLOSSARY

AEMAS ASEAN Energy Management Scheme

AGM Annual General Meeting

APIC Annual Productivity and Innovation Conference

& Exposition

APSA Asia-Pacific Superyacht Association

ASP Anchor Strategic Partner

AVDS Automatic Vehicle Detection System

BCIC Bumiputera Commercial and Industrial

Community

BE Business Excellence

BEA Bumiputera Empowerment Agenda

BEM Board of Engineers Malaysia

BKE Butterworth-Kulim Expressway

BLE Bayan Lepas Expressway

BMCC British Malaysian Chamber of Commerce

BSI British Standards Institution

BVDP Bumiputera Vendor Development Programme

BYOK Bring Your Kids to Work

C&CA Cement & Concrete Association of Malaysia

CDC Child Development Centre

CEO Chief Executive Officer

CEP Continuing Education Programme

CIDB Construction Industry Development Board

Malaysia

CIE Cambridge International Examinations

CIHT Chartered Institution of Highways

and Transportation

CIMA Cement Industries of Malaysia Berhad

CIS Corporate Integrity System

CnC Command and Contact Centre

CONQUAS Construction Quality Assessment System

CRM Customer Relationship Management

CSI Customer Satisfaction Index

DAL Discretionary Authority Limit

DGMX Digital Maker Global Exchange Programme

DOE Department of Environment

EFFORT Electronic Form for Toll

EGM Extraordinary General Meeting

EHS Environmental, Health and Safety

ELP Emerging Leaders Programme

EMGS Energy Management Gold Standard

EMSB Edgenta Mediserve Sdn Bhd

EPF Employees Provident Fund

ERP Emergency Response Procedures

ERT Emergency Response Team

ETC Electronic Toll Collection

ETOL Electronic Toll Form

FGDs Focus Group Discussions

FHR Federal Highway Route

FIABCI International Real Estate Federation

FMM Federation of Malaysian Manufacturers

FPLC Federation of Public Listed Companies Berhad

FTL Group Term Life

GBI Green Building Index

GDV Gross Development Value

GMD Group Managing Director

GPA Group Personal Accident

GRI Global Reporting Initiative

GrIP Group Induction Programme

GTL Group Term Life

H.E.A.R.T Harness, Educate, Attitude, Readiness

and Timeline

HSE Health, Safety and Environmental

HSS Hospital Support Services

HSSE Health, Safety, Security and Environment

IDAM Islamic Dental Association of Malaysia

IEM The Institution of Engineers Malaysia

IMARET IMAM Response & Relief Team

IMSHA Iskandar Malaysia Social Hero Awards

ITS Intelligent Transport System

ITSAM Intelligent Transport System Association

of Malaysia



GLOSSARY

JKJR Jabatan Keselamatan Jalan Raya

JKM Jabatan Kebajikan Masyarakat

JQA Johor Quarry Association

JSA Johor Sailing Association

JSJN Jabatan Siasatan Jenayah Narkotik

KG Kilogramme

KSPK Kurikulum Standard Pra Sekolah

KYUEM Kolej Yayasan UEM

LeAP Leadership Acceleration Programme

LEF Learn English Family

LEOC Learning Experience Outside Classroom

LWS Live Well, Work Well, Spend Well

MAPMA The Malaysian Asset & Project Management

Association

MARA Majlis Amanah Rakyat

MASSA Malaysia South-South Association

MBAM Master Builders Association Malaysia

MCIEA Malaysian Construction Industry Excellence

Award

MIBC Malaysia-India Business Council

MIGHT Malaysia Industry-Government Group for High

Technology

MIROS Malaysian Institute of Road Safety Research

MIT Massachusetts Institute of Technology

MKJR Majlis Keselamatan Jalan Raya

MNZCC Malaysia New Zealand Chamber of Commerce

MoC Memorandum of Collaboration

MOE Ministry of Education

MoU Memorandum of Understanding

MPIC Malaysia Productivity & Innovation Class

MQA Malaysian Quarry Association

MT Metric Tonnes

MUFORS Malaysia Unite for Road Safety

MyCREST Malaysian Carbon Reduction

and Environmental Sustainability Tool

NIOSH National Institute for Occupational Safety

and Health

NKVE New Klang Valley Expressway

NRMCA National Ready-Mixed Concrete Association

of Malaysia

NSCI Negeri Sembilan Cement Industries

NSE North-South Expressway

NSILC Negeri Sembilan Industrial Liaison Centre

NSQA Negeri Sembilan Quarry Association

NTex National Team Excellence

Opus Opus Group Berhad

PA Public Announcement

PAYSA Pertubuhan Kebajikan Anak Yatim Sabak

Bernam

PDP Pejabat Daerah Petaling

PDPA Personal Data Protection Act

PDRM Polis DiRaja Malaysia

PEIB PLUS Expressways International Berhad

Pekeas Pertubuhan Kebajikan Ensan Ash-Shakur

PINTAR Promoting Intelligence, Nurturing Talent

& Advocating Responsibility

PIT PROPEL’s Intervention Team

PLUS PLUS Malaysia Berhad

PMS Performance Management System

PPD Pejabat Pendidikan Daerah

PIBG Persatuan Ibu Bapa dan Guru

Project STAR Share, Think, Ask, Respond

PR1MA Perumahan Rakyat 1Malaysia project

PSA Politeknik Sultan Salahuddin Abdul Aziz Shah

PSHECP Project Safety, Health & Environmental

Compliance Plan

PSKLM Persatuan Syarikat-Syarikat Konsesi

Lebuhraya Malaysia

PSP Propel Safety Passport

123UEM GROUP BERHAD


QASHE Quality Assurance, Safety, Health

and Environment

QLASSIC Quality Assessment System in Construction

QMS Quality Management Systems

RBA Rail Business Asia

RC Reading Circle

REAM Road Engineering Association of Malaysia

REHDA Real Estate and Housing Developer’s

Association Malaysia

RM Ringgit Malaysia

RMC Risk Management Committee

RMMJ Rumah Mampu Milik Johor

ROD Receipt On Demand

RSA Rest and Service Area

SEC Singapore Environment Council

SIRIM Standards and Industrial Research Institute

of Malaysia

SPAD Suruhanjaya Pengangkutan Awam Dara

SPDH Seremban-Port Dickson Highway

SROI Social Return on Investment

STPs Sewarage Treatment Plants

SYABAS Syarikat Bekalan Air Selangor

TABAS Tapak Bina Sejahtera

TFM Teach for Malaysia

TMC Traffic Monitoring Centre

TTA Travel Time Advisory

TYHA The Yacht Harbour Association

UAE United Arab Emirates

UELP English Literacy Programme Sponsored

by UEM Group Berhad

UEM Builders UEM Builders Berhad

UEM Edgenta UEM Edgenta Berhad

UEM Group UEM Group Berhad

UEM Group UEM Group and its subsidiaries

of Companies

UEM Group UEM Group Skim Latihan 1Malaysia

SL1M

UEM Sunrise UEM Sunrise Berhad

UIAM Universiti Islam Antarabangsa Malaysia

UiTM Universiti Sains Malaysia and Universiti

Teknologi MARA

UKM Universiti Kebangsaan Malaysia

UKMMC Universiti Kebangsaan Malaysia Medical Centre

ULC UEM Learning Centre

UMMC University Malaya Medical Centre

UniMAP University Malaysia Perlis Malaysia

UPM Universiti Putra Malaysia

USM Universiti Sains Malaysia

UTM Universiti Teknologi Malaysia

UTP Universiti Teknologi PETRONAS

VDP Vendor Development Programme

VMS Variable Message Signage

VTO Very Thin Overlay

WBCSD World Business Council for Sustainable

Development

WBL Work-Based Learning Programme

WRI World Research Institute

YEP Young Engineers Programme

YES Young Executive Scheme

YGP Young Graduate Programme

GLOSSARY



General Standard Disclosure

Description Page Reference Additional Descriptions / Reason for Omission (if any)

Strategy and Analysis

G4-1 Statement from the most senior decision-maker of the organisation

28

Organisational Profile

G4-3 Organisation’s name Front Cover

G4-4 Primary brands, products and services 8-13

G4-5 Location of the organisation’s headquarters 2

G4-6 Countries of major operation 7

G4-7 Nature of ownership and legal form 6

G4-8 Market served 7

G4-9 Scale of the organisation 6-7

G4-10 Total number of employees 92

G4-11 Percentage of total employees covered by collective bargaining agreements

N/A

G4-12 Organisation’s supply chain 53

G4-13 Significant changes during the reporting period regarding the organisation’s size, structure, ownership or its supply chain

28

G4-14 Implementation of the precautionary approach 40

G4-15 Endorsement of external economic, environmental and social characters and initiatives

111

G4-16 Membership in national/international associations 51

Identified Material Aspects and Boundaries

G4-17 Entities included in the organisation’s consolidated Financial Statements

-

G4-18 Process for defining the report content and the aspect boundaries

2

G4-19 Material aspects identified in the process for defining report content

40

G4-20 Aspect boundary within the organisation 41

G4-21 Aspect boundary outside the organisation 41

G4-22 Effect of any restatements 28

G4-23 Significant changes during the reporting period in the scope and aspect boundaries

40-41

GRI INDEX TABLE

Our Disclosure against the GRI G4 and Bursa Malaysia Sustainability Guide

General Standard Disclosures

125UEM GROUP BERHAD


Stakeholder Engagement

G4-24 Stakeholder groups engaged by the organisation 34

G4-25 Basis for identification of stakeholders 34

G4-26 Approach to stakeholder engagement 34

G4-27 Key topics and concerns raised by stakeholders 34

Report Profile

G4-28 Reporting period 2

G4-296 Date of most recent previous report 2

G4-30 Reporting cycle 2

G4-31 Contact point for questions regarding the report 2

G4-32 Chosen ‘in accordance’ option including reference to the GRI Content Index and the External Assurance Report

This report has not undergone a GRI check. We aim to have our future report verified by an external assurer and certified by GRI.

G4-33 Organisation’s policy and practice with regard to seeking external assurance

This report has not undergone a GRI check. We aim to have our future report verified by an external assurer and certified by GRI.

Governance

G4-34 Organisation’s governance structure 6

Ethics and Integrity

G4-56 Organisation’s codes of conductand codes of ethics

46

GRI INDEX TABLE



Category Aspects Page reference (or direct responsein case of omission)

Additional Descriptions / Reason for Omission (if any)

Economic Economic Performance 52

Market Presence 7

Indirect Economic Impacts 53

Environmental Energy 58

Water 64

Emissions 62

Effluents And Waste 63

Overall 57

Compliance 111

Environmental Impact from Transportation 63

Social - Labour Practices and Decent Work

Employment 92

Labour/Management Relations 101

Occupational Health and Safety 107

Training and Education 97

Diversity and Equal Opportunity 92 and 97

Labour Practices 94

Social - Human Rights

Non-Discrimination 97

Forced or Compulsory Labour 41

Child Labour 41

Social - Society Local Communities 67

Anti-Corruption 46

Public Policy 51

Compliance 67

Social - Product Responsibility

Public Health and Safety 116

Provision of Information 113

Customer Privacy We adhere to the Personal Data Protection Act which came into effect in 2014

Compliance 111

Categories and Aspects in the Bursa Sustainability Guidelines

Specific Standard Disclosures

GRI INDEX TABLE

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www.uem.com.my

UEM Group Berhad (6551-K)

17-2 Mercu UEMJalan Stesen Sentral 5Kuala Lumpur Sentral50470 Kuala LumpurMalaysia

Tel : +603-2727 6868Fax : +603-2727 2222

sustainable value & uniting lives

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