Social

• Occupational Health and Safety
• Diversity and Inclusion
• Labour Practices, Employee Engagement and Basic Human Rights
• Community Engagement

Occupational Health and Safety

Description

Occupational health and safety are important aspects of the steel industry due to the potential risks involved in manufacturing processes. Maintaining a strong safety culture helps to manage these risks and supports compliance with regulatory, operational, and reputational standards.

Business Model and Value Chain

Occupational health and safety (OHS) are integrated into the Group’s business model and operational practices, reflecting their importance in maintaining a resilient and responsible value chain. OHS considerations apply to employees, contractors, and other stakeholders, and are embedded in plant operations, equipment maintenance, standard operating procedures, and contractor onboarding.

The Group adopts ISO 45001-certified management systems, supported by safety and health committees, and overseen by both management and the Board. These systems form part of the Group’s broader risk management framework and support compliance with regulatory requirements. Risk controls are applied across both on-site and contracted workforces, consistent with industry practices. The Group continues to strengthen its OHS systems to address emerging risks and align with evolving stakeholder expectations and regulatory developments.

Strategy and Decision Making

As a socially responsible steel corporation, the Group places the highest priority on protecting the health and safety of its employees, contractors, and other stakeholders. The Board of Directors has oversight into the health and safety matters of the Group, with the Group Managing Director (GMD) responsible for reporting to the Board. The GMD is supported by the SSC OSH Working Committee which comprises safety managers and/or safety officers from all the operating companies within the Group. The Committee leads initiatives in:

• OSH compliance

• Adopting and maintaining ISO 45001 Occupational Health and Safety Management System certification

• Risk management, hazard identification, and risk assessment

• Employee participation and engagement

• Safety and health training

• Safety and health performance

The Group affirms that clear and consistent communication is vital to fostering a strong health and safety culture among employees, contractors, and other stakeholders at the workplace. Our OSH Policy Statement reflects our commitment to providing a safe and healthy working environment, while continuously improving workplace health and safety performance. To effectively manage OHS, the Group employs a hybrid approach that combines both top-down and bottom-up strategies. This ensures leadership-driven direction and employee engagement in identifying risks, implementing controls, and promoting a safety-first mindset throughout the Group.

OSH Compliance

The Group keeps abreast of the latest legal requirements for health and safety and works diligently to comply with the requirements.

ISO 45001 Occupational Health and Safety Management System

The Group recognises that obtaining the ISO 45001 Occupational Health and Safety Management System certification (formerly OHSAS 18001) is foundation to a systematic approach OSH management. Accordingly, the Group adopts the ISO 45001 as a guideline for establishing and maintaining its health and safety systems.

Risk Management, Hazard Identification and Risk Assessment

All the operating companies in the Group have established their respective registers, as stated below as part of their compliance to the requirement of ISO 45001 and Department of Occupational Safety and Health (“DOSH”):

• Social Risk and Opportunity Register

• Hazard Identification, Risk Assessment and Risk Control (“HIRARC”)

• Chemical Health Risk Assessment (“CHRA”).

The Group applies risk management for all the existing operating companies, including potential new projects. For chemical health risk assessment, each operating company will appoint a competent CHRA assessor to perform the assessment at an interval of every 5 years. As part of the risk mitigation, the Safety and Health Committee of the Group has established safety visual standards for common facilities and processes within the Group. The safety officers within the Group conduct an annual audit verification on the implementation of safety visual standards to ensure standardisation of health and safety practices within the Group.

Employee Participation and Engagement

The Group strives to safeguard employees’ well-being beyond adhering just to safety regulations. The Group endeavours to instil a culture of total involvement in health and safety by encouraging employee participation and engagement.

Management and the employees, including union and non-union representatives actively participate in the safety committee meetings conducted quarterly to ensure meticulous management of health and safety matters. Additionally, each operating company is required to report monthly OSH performance updates to the GMD. To further support of employee health and well-being, the Group collaborates with PERKESO, a government body, to perform health screening for targeted age groups. These screenings help detect and prevent non-communicable diseases, such as diabetes and high blood pressure, contributing to a healthier workforce.

Safety and Health Training

The Group prioritises training as a key driver of health and safety excellence. Regular trainings help fostering a safety-conscious culture that improves overall business operations and employee well-being.

Safety and Health Performance

Safety and health performance is a key measure of the effectiveness of the Group’s strategy implementation. Strong performance in this area enhances employee morale, retention, and productivity, while also strengthening the Group’s reputation and ensuring compliance with legal and regulatory requirements. By maintaining high safety and health standards, the Group contributes to overall economic value creation and supports its long-term success.

Financial Effect

The Group assesses the financial implications of health and safety in relation to sustainability-related risks and opportunities (SRO). Historically, the financial impact of health and safety risks and disruptions was considered high, particularly during the operation of the steelmaking plant. With the steelmaking operations currently ceased, the current and anticipated financial impact is assessed to be low.

In the event of disease outbreaks such as pandemics or endemics, the Group has established control measures across all operations to minimise the spread of illness, drawing from experience during the COVID-19 pandemic. However, the anticipated financial impact could be extreme if a nationwide movement control order is implemented by the Government, potentially affecting operations, workforce availability, and supply chains.

Operating within the context of heavy industry, the Group is exposed to various potential risks despite strict regulatory oversight by the Department of Occupational Safety and Health (DOSH) and the implementation of proactive strategies. These risks include:

• Production losses

• Legal and compliance costs

• Reputational damage

• Loss of human asset

Such risks may arise from workplace accidents, fatalities, hazards, employee incompetency, and poor safety mindset or attitude. However, in the absence of steelmaking operations, these risks are considered minor. The Group continues to monitor and manage health and safety risks as part of its broader environmental and operational risk management framework, ensuring ongoing alignment with regulatory requirements.

Resilience of the Group's Strategy and Business Model

The Group’s strategies are designed to remain resilient by continuously assessing and integrating health and safety practices to address identified sustainability-related risks and opportunities (SRO). This includes the use of both leading and lagging indicators to monitor and manage OSH performance.

• Leading indicators—such as safety training participation, and proactive hazard identification, enable early detection of potential risks and help foster a strong safety culture.

• Lagging indicators—such as lost time incidents, and regulatory non-compliances—provide insights into historical performance and areas requiring improvement.

This dual approach supports the Group’s long-term health and safety objectives, enhances operational resilience, and contributes to effective management of ESG risks across its business model.

Metrics and Targets

ISO 45001 Occupational Health and Safety Management System

All the sites in the Group are certified with ISO 45001. This reflects our persistence in pursuing our duty of care in the health and safety of our people.

Employee Participation and Engagement

The Group track safety observation report (SOR), safety training records and Lost-Time Injury Frequency Rate (LTIFR). The Group encourages its employees to report any potential safety hazard in their workplace by filing a Safety Observation Report (“SOR”). SOR is also used by management during Gemba Walk to communicate and discuss health and safety subjects with the employees. In addition, the employees also contribute and implement safety related Kaizen ideas that further improve the health and safety of their working environment.

The below shows the results of SOR raised and number of safety Kaizens recorded:

Safety and Health Training

In FY2023, the Group set a target to achieve 100% training coverage for all staff over a three-year period (FY2023 to FY2025). By the end of FY2025, this target was successfully achieved.

Safety and Health Performance

 The Group's LTIR target is as below:

The chart below shows the LTIR performance of the Group, which covers 100% of the operating companies (sites):

The Group has seen a minor setback from the previous financial year. In FY2025, the Group achieved 1.20 as compared to 1.17 in FY2024. However, the group has achieved a zero-fatality financial year through vigorous and diligent efforts to improve the Group’s safety standards.

The Group will continue to emphasise and encourage employees to participate in identifying and mitigating unsafe conditions and practices in the workplace. The Group continues to strive to meet our slogan of zero accidents and zero fatalities.

Diversity and Inclusion

Description

Workforce diversity is increasingly recognised as a key driver of innovation, resilience, and success in today’s globalised and interconnected world. The Group continues its focus to fostering a diverse and inclusive workplace, where unique perspectives, experiences, and talents are valued and leveraged to strengthen collaboration and performance.

Business Model and Value Chain

The Group has cultivated a workforce that reflects a diverse mix of ethnic origins, gender, and nationalities, aiming to promote inclusiveness and equal opportunities. We believe that a diverse workforce not only broadens the talent pool but also foster innovation, which is critical to maintaining long-term competitiveness across our value chain.

While certain roles within the steel manufacturing environment have traditionally been filled by specific demographics due to the nature of work, the Group is confident that greater inclusion will enhance team performance and problem-solving capabilities, both on the production floor and within management.

We continue to invest in building a workplace culture that embraces diversity and promotes equal opportunity for all employees, thereby strengthening our human capital, which is essential to the success of our business model.

Strategy and Decision Making

Promoting ethnic diversity requires ongoing efforts and initiatives to eliminate biases and provide equal opportunities to foster a culture of inclusivity across the organisation. The Group will continue to embrace the diverse backgrounds of our workforce and advancing gender diversity at both the departmental and group levels.

While the current composition reflects a higher proportion of male employees, attribute in part to the nature of our industry, the Group is intensifying our efforts to source, attract, and develop qualified female talent particularly for executive and above-level appointments and critical technical roles. These areas have historically seen lower female participation in the applicant pool. By focusing on balanced representation and inclusive leadership development, the Group aims to strengthen diversity and build a more resilient organisation.

The Group embraces the cultural richness of our employee as a core element of our inclusion strategy. We promote cultural awareness and employee engagement through initiatives such as celebrating multi-ethnic festive seasons including Chinese New Year, Hari Raya Aidilfitri, and Deepavali. These celebrations reflect our inclusive workplace culture and reinforce a sense of belonging among employees. By strengthening engagement and retention, these efforts contribute to operational continuity and reinforce the Group’s strategic resilience.

Celebration of Multi-Ethnic Festive Seasons

Financial Effects

The Group assesses the financial implications of diversity and inclusion in relation to SROs. 

While the Group considers diversity and inclusion a strategic opportunity, it recognises potential risks that could lead to:

• Legal liabilities

• Reputational damage

• Reduced productivity and quality

• Increased operational costs

These risks may arise from violations of fundamental rights, such as unequal treatment or discrimination based on identity, race, nationality, age, or other circumstances—particularly affecting vulnerable groups including foreign workers.

To date, the Group has not experienced any incidents related to such risks. Based on current assessments, the financial impact is considered negligible, and the risk rating is trivial. Nonetheless, the Group remains vigilant and committed to upholding equal opportunity and fair treatment across its operations to prevent future risks and strengthen its social license to operate.

Resilience of the Group's Strategy and Business Model

The Group’s strategy and business model are designed to remain resilient by continuously assessing and adapting to sustainability-related risks and opportunities (SROs), including those related to diversity and inclusion. Our approach integrates inclusive practices that support long-term viability, competitiveness, and the ability to attract and retain talent in a dynamic operating environment.

The resilience of the Group is built upon a diverse workforce that is productive, empowered, and motivated. We recognise that diversity enhances adaptability, fosters innovation, and strengthens collaboration, a key attribute that supports long-term business sustainability.

The celebration of multi-ethnic festive seasons contributes to a cohesive and inclusive workplace culture, reinforcing our commitment to social sustainability and organisational resilience.

Metrics and Targets

Diversity & inclusion are measured using metrics such as percentage of age group, ethnicity, and gender at various categories.

Generally, the Group’s mix of employees in different age groups remained constant and healthy over the years. Our employee age information for FY2025 is categorised into different employee categories to understand more regarding our employee age demographic.

Employee gender information for FY2025 is categorised into different employee categories to understand more regarding our employee gender demographic.

Labour Practices, Employee Engagement and Basic Human Rights

Description

Labour practices, employee engagement, and basic human rights are essential for creating a safe, fair, and inclusive workplace. They support employee well-being, drive productivity, and help ensure compliance with legal and ethical standards, contributing to long-term business sustainability.

Business Model and Value Chain

The Group recognises that respecting labour practices, engaging employees, and upholding basic human rights are essential to fostering well-being, building a resilient, ethical, and sustainable business, and supporting long-term value creation and business continuity.

We promote a respected and inclusive workplace across our operations and value chain, extending these principles to suppliers and contractors. The Group upholds basic human rights principles including fair treatment, non-discrimination, equal opportunity, and the prohibition of child labour, as outlined in our Supplier Code of Conduct and Ethics.

In cultivating our Group’s core value to support a healthy and sustainable workforce, the Group invests in structured training and development programmes that enhance employee capabilities and promote continuous learning - key drivers of operational efficiency and innovation. Contractors working on-site also receive basic briefings to ensure alignment with our workplace standards and values.

Strategy and Decision Making

The Group refers to Universal Declaration of Human Rights (UDHR), International Labour Organisation (ILO) and United Nations Guiding Principles on Business and Human Rights to guide its commitment to inclusive labour practices, respect for basic human rights, and the cultivation of a supportive and diverse work environment.

The Group believes in treating every employee with dignity, fairness, and respect, while fostering an environment that supports continuous learning and personal growth. Our commitment to inclusive labour practices and basic human rights is embedded in our codes and policies, aligned with legal requirements, reinforced by the Group’s core value. This commitment is further supported by proactive employee engagement initiatives, quarterly foreign worker engagement programmes, and a structured learning and development program. The Group also has mechanisms in place to address concern related to labour practices and human rights.

Code and Policies 

The Our codes and policies listed below outline inclusive labour practices and embed basic human rights practices into daily operations, governance, and stakeholder relationships. They are aligned with our broader ESG strategy and support long-term value creation across our workforce and value chain.

• Code of Conduct and Ethics for Directors

• Sustainability Policy Statement

• Labour Standards Statement

• Code of Conduct and Ethics for employees

• Occupational Health and Safety (OHS) Policy Statement

• Supplier Code of Conduct and Ethics

The board of Directors is expected to observe Code of Conduct and Ethics for Directors, which emphasis transparency, integrity, accountability, corporate liability, and sustainability. This commitment supports leadership responsibility in promoting fair labour practices and respecting basic human rights across the Group’s operations. Our sustainability policy statement reflects our commitments to environmentally responsible practices, community well-being, and ethical business practices. It addresses, directly or indirectly, access to clean water, air, and a healthy environment, all of which are recognised as basic human rights.

The Group is committed to upholding the principles outlined in its Labour Standards Statement, communicated in both English and Malay to employees and stakeholders, including business partners. These principles reflect our core values of dignity, fairness, and respect, and guide our efforts to foster an inclusive and diverse work environment that supports employee rights and well-being. Our commitment to basic human rights is also embedded in the Group’s Code of Conduct and Ethics, which applies to all employees. We believe that every individual deserves to be treated with respect and fairness, and we are dedicated to fostering a respectful and inclusive workplace that upholds these values.

The Group places strong emphasis on fair working conditions. We strive to maintain a workplace free from harassment and unlawful discrimination based on race, religion, gender, age, sexual orientation, disability, nationality, gender identity and expression, colour, ethnicity, political affiliation, union membership, covered veteran status, protected genetic information or marital status. These principles are reflected in our hiring and employment practices, including promotions, rewards, and access to training. We also promote a healthy work-life balance by striving to eliminate excessive working hours, ensuring employees have sufficient rest and time to engage in personal and family life.

The Group has taken measures to prevent child labour and forced labour, support a living wage and enable employee representatives to engage meaningfully with company management. We provide oversight and resources to uphold human rights across relevant functions and in our day-to-day operations.

As part of our effort to promote corporate responsibility beyond our operations, we extend the principles of basic human rights to our supply chain. Our Supplier Code of Conduct and Ethics prohibits all forms of forced, abusive, and illegal labour. Suppliers are expected to treat all their employees, whether permanent or contractual, with fairness and respect, and to do their best to foster a working environment free from discrimination and harassment. They are required to comply with all applicable labour laws and regulations, including those related to minimum age, minimum wages and benefit, working hours, and provident/retirement fund contributions.

Legal Alignment

Our approach is guided by the relevant laws in Malaysia. These laws form the foundation of our employment policies. Key laws guiding our labour practices include:

• Employment Act 1955 (Act 265)

• Industrial Relations Act 1967

• Holidays Act 1951 (Act 369)

• Children and Young Persons (Employment) Act 1966 (Act 350)

• Employment (Termination and Lay-Off Benefits) Regulations 1980

• Minimum Wages Order 2022

The Group also respects the rights of workers to associate freely, join or not join labour unions, seek representation, and join workers’ councils in accordance with local laws.

Cultivating the Group's Core Values 

To support a healthy and sustainable workforce, the Group upholds its core values and promotes best practices across all levels of the organisation. We expect our leaders and managers to embody the Group’s core values of honesty, integrity, and respect for people. These values are integral to our decision-making and daily operations.

Employee Engagement

The Group is committed to fostering a highly engaged workforce to enhance operational efficiency, quality, and innovation. Strategic initiatives are in place to keep employees motivated, involved, and empowered to perform at their best.

Non-operational engagement includes weekly department meetings, town halls, and company events that promote communication, collaboration, and feedback. The Group also adopts the 5S system, with active participation from all employees to drive continuous improvement in productivity, quality, cost, delivery, safety, and morale.

a) Sports Activities

In February 2025, the Group participated in the Hong Leong Group’s Annual Sports Tournament in Kampar, Perak, featuring events such as football, badminton, volleyball, table tennis, tug of war and athletics. Employees competed enthusiastically, and winners were awarded medals by senior management.

Employee engagement is integrated into both operational and non-operational activities. On the shop floor, workers participate in daily meetings with plant management to raise concerns and propose solutions. They also contribute to joint improvement teams focused on enhancing operational performance.

b) 5S Activities

Since 2012, the Group has implemented the 5S system across office and plant environments to promote a conducive workplace and continuous improvement. In FY2025, all operating companies successfully sustained their 5S performance through internal audits.

Foreign Worker Engagement

To enhance the well-being of our foreign workers, the Group has introduced a quarterly hostel competition aimed at promoting safe, clean, and comfortable living conditions. This initiative encourages continuous improvement in accommodation standards and fosters a sense of pride and ownership among workers. The competition is evaluated based on key criteria, including:

• Cleanliness and organisation

• Health and safety compliance

• Implementation of 5S principles

• Kaizen (continuous improvement) efforts

Once the competition result has finalised, the foreign workers will be engaged. The results will then be shared with the foreign workers highlighting the good efforts and the conditions that need to be improved.

As part of the prize-giving activities, the Human Resources team organises grocery shopping trips for the winning foreign workers, adding a meaningful and practical reward to the initiative. This programme not only supports the physical well-being of our foreign workers but also fosters a sense of pride, ownership, and community within their living environments.

Mechanism to Address Labour and Human Rights Issues

The Group has established 2 channels to address labour and human rights issues promptly and effectively.

a) Whistleblowing Channel

The Group has established oversight responsibility and allocated resources to address concerns on any improper conduct or wrongful act involving the Group, including those related to labour practices and basic human rights. Accountability for this oversight is assigned to the Chairman of the BARMC.

Employees may raise any concern on any improper conduct or wrongful act involving the Group that is committed, including but not limited to:

• Any criminal offences, including fraud, corruption, bribery, and blackmail

• Any failure to comply with legal or regulatory obligations

• Any improper conduct which would be a disciplinary offence

• Any gross mismanagement of company affairs

• Any act or omission which jeopardises the health and safety of any employee of SSB Group or any member of the public.

Upon receiving a report, the Group initiates a confidential and impartial investigation. All findings are documented and reviewed by the BARMC, followed by appropriate decision-making.

b) Grievances Mechanism

The Group has taken actions to address any forms of discrimination faced by employees, including but not limited to race, religion, gender, age, sexual orientation, disabilities, or nationality. To support this, we have established an internal grievance channel that enables employees to report their concerns. Employees may submit their grievance by completing the Grievance Form, which is available on the company’s intranet. The responsibility for reviewing and resolving grievances lies with the Immediate Supervisor, Manager, and the Human Resource Department, depending on the nature and severity of the issue. This mechanism ensures that all grievances are handled promptly, fairly, and confidentially, in alignment with the Group’s commitment to inclusive labour practices and respect for human rights.

Learning and Development

Our training procedures aligns development programs with the broader organisational goals, while also addressing the individual development needs of employees. This approach supports the Group’s strategy of building a learning organisation and sustaining a robust talent pipeline. Additionally, the Group conducts development analyses to understand the needs of our employees. This process helps identify knowledge and skill gaps within the organisation, considering external factors such as industry and regulatory changes, employee expectations, future organisational needs, and the latest innovations and technological advancements. Below is a summary of the personal development training programs attended by employees in FY2025 to enhance their abilities and individual skills:

Financial Effect

The Group assesses the financial implications of labour practices and human rights in relation to SRO. The exposure to these SROs may result in financial impacts, including:

• Non-compliance by the Group, its employees, or suppliers with established labour standards.

• Compromising or violations of fundamental rights and entitlements of individuals, including foreign workers, regardless of identity or circumstances.

Such issues may lead to potential reputational damage, economic consequences such as declining sales, reduced productivity and quality, increase in operational costs, and potential legal fines or penalties.

Based on historical data, the Group anticipates that both current and anticipated financial impact are negligible. This is due to the integration of effective labour practices and respect for basic human rights into our business model, supported by the Group’s Labour Standards Statement and Codes of Conduct for employees and suppliers. These practices help mitigate risks related to fraud, litigation, violations of workers’ rights, and operational disruptions. They also strengthen stakeholder trust and contribute to long-term business sustainability.

Strong labour relations within the Group support lower employee turnover, reducing recruitment and training costs while enhancing institutional knowledge and operational continuity.

Resilience of the Group's Strategy and Business Model

The Group’s labour and human rights strategies are designed to ensure compliance with Malaysian employment laws and supported by internal codes and policies such Group’s Labour Standards Statement, and the Code of Conduct and Ethics. These practices contribute to employee well-being, engagement, and retention which are key factors in maintaining a stable and resilient workforce.

By fostering a supportive work environment and consistently applying inclusive labour practices, the Group enhances its ability to retain talent and reduce operational risks. This commitment extends to the welfare of foreign workers employed in our operations, ensuring their basic rights and well-being are respected throughout their employment lifecycle. The Group also applies inclusive practices and engages with contractors, suppliers, and other stakeholders. This approach contributes to stable, resilience, predictable operations, supporting long-term value creation across the Group’s value chain.

Collectively, these efforts reinforce the resilience of the Group’s business model, enabling sustainable growth and long-term value creation.

Metrics and Targets

Training and Development

In FY2025, the Group recorded a total of 15,553 training hours, averaging 10.8 hours or 1.36 days of training per employee. This reflects our ongoing commitment to employee development and capability building.

We continue to prioritise learning and development as a strategic effort to enhance service quality, strengthen skillsets, and ensure a steady pipeline of talent for both current and future business needs. Training hours are tracked by employee category to support informed decision-making on resource allocation and to ensure that employees are equipped with the necessary skills to perform their roles effectively.

Discrimination and Harassment

In FY2025, there were no reported incidents related to discrimination, harassment, child labour or forced labour.

Employee Turnover Rate

In April 2025, SSB temporarily ceased operation at its steelmaking plant to undertake a major technological upgrading aimed at reducing energy consumption and greenhouse gas emissions in billet production. Following the cessation, a Voluntary Separation Scheme (VSS) was offered to employees and supporting staff of steelmaking plant, resulting in a notable increase in voluntary turnover. This including contractor/temporary staff. The full-time staff turnover rate is 27.3% for FY2025 as compared to 7.5% in FY2024. Despite this transition, the Group continue to monitor employee retention rates, recognising their importance in maintaining a stable and productive workforce.

The ratio of permanent staff to temporary staff for FY2025 stands at 75.2%:24.8%, no changed from the previous financial year. The Group employs 3 staff with disabilities. We remain committed to fostering a supportive and engaging work environment, with a focus on skills development, learning opportunities, and employee well-being to retain and grow our talent. The total number of employee turnovers by category is tracked to identify trends and patterns across specific groups. This analysis supports the enhancement of retention strategies and strengthens workforce planning and labour practices.

Community Engagement

Description

Recognising that communities are an integral part of the business ecosystem, the Group is committed to deliver shared value by contributing meaningfully to the communities in which it operates. Through purposeful engagement and investment, the Group support a more inclusive and sustainable future.

Business Model and Value Chain

The Group believes that every initiative, regardless the scale, can create meaningful impact. It strives to embed community engagement across its value chain, reinforcing the Group’s commitment to sustainable business practices and a better shared future for communities, people, and the planet.

To cultivate a sense of social responsibility, the Group encourages employees to actively participate in community initiatives. These efforts are supported through structured community investments, including contributions in the form of cash, time, in-kind support, and management resources.

The Group’s community engagement model is built on 3 strategic pillars:

These initiatives are prioritised in communities where the Group operates, ensuring relevance, impact, and long-term value creation.

Strategy and Decision Making

The Group’s community strategy is designed to support social wellbeing, educational empowerment, and environment stewardship. It focuses on targeted investment in education, health, and local environmental improvements, with the aim of delivering long-term shared value to the communities in which the Group operates.

Heart-to-Heart (H2H) Club

Established since 1995, the Group’s H2H club serves as a primary vehicle for community outreach. It plays a role in:

• Promoting social wellbeing and development, especially for the underprivileged groups.

• Driving environmental initiatives.

H2H operates under the following guiding principles:

• Local Focus: Carrying out community works in locations where the Group has operational presence.

• Collaborative Approach: Performing community works in partnership with non-profit based organisations.

• Employee Engagement: Encouraging participation to instil compassion and volunteerism, benefiting the less fortunate elderly, youth and children, both within and beyond the Group.

• Environmental Responsibility: Activities support the Group’s waste management strategy—reduce, reuse, recycle, and recover, to minimise environmental impact.

Talent Development and Succession Planning

The Group aims to prioritising local employment and nurturing local talent, particularly in the critical operational areas. The education programs and activities are designed not only to support individual growth but also to align with the Group’s succession planning strategy. This ensures a steady pipeline of well-prepared, skilled professionals who are ready to contribute to the long-term success of the Group.

Financial Effect

The Group assesses the current and anticipated financial implications of community engagement in relation to SRO. The Group viewed community engagement as an opportunity, not a risk. While the financial investment is modest, the long-standing commitment has fostered a culture of social responsibility among employees and strengthened relationships with local communities. These efforts have:

• Enhanced the Group’s corporate reputation.

• Created business opportunities with ESG-conscious customers.

• Supported employee engagement and retention.

• Reduced potential operational disruptions (e.g., protests, complaints), which could otherwise lead to financial losses.

Resilience of the Group's Strategy and Business Model

The Group’s strategy and business model are designed to remain resilient through ongoing evaluation and adaptation in response to SRO.

The Group’s community engagement strategy is both adaptive and responsive, ensuring long-term value creation for both the business and the communities it serves. Key elements include:

• Local focus: Prioritising initiatives in areas where the Group operates.

• Talent development: Aligning education programs with succession planning to build a pipeline of skilled professionals.

These efforts contribute to the Group’s strategic resilience by strengthening stakeholder relationships, enhancing operational stability, and supporting long-term success.

Metrics and Targets

Here are some snapshots of the activities carried out in FY2025:

Orphanage and Old Folks Home Program

The Group is dedicated to supporting the underprivileged, aiming to foster sustainable livelihood and improve quality of life. As part of its community engagement efforts, the Group visits orphanages and old folks’ homes, contributing through:

■ Cash donations

■ Provision of food and essential supplies

■ Organising recreational and social activities for residents

These visits reflect the Group’s commitment to social responsibility and demonstrate how small acts of kindness can bring joy and comfort to those who have faced significant hardships. The emotional connection and positive impact observed during these engagements reinforce the Group’s belief in building compassionate and inclusive communities.

The Group’s approach aligns with the principles outlined in the United Nations Convention on the Rights of the Child, which affirms every child’s right to:

■ The best possible health care

■ Access to clean water and nutritious food

■ A safe and clean-living environment

■ Opportunities for education, play, and recreation

By upholding these values, the Group contributes to the adequate standards of living and wellbeing for children and elderly individuals in its communities.

Blood Donation Campaigns

The Group recognises that donating blood is one of the most valuable gifts an individual can offer to save lives. As part of its commitment to public health and social responsibility, the Group organises blood donation campaigns in collaboration with government hospitals. These campaigns aim to:

■ Raise awareness about the importance of blood supply to save lives.

■ Encourage voluntary participation among employees.

■ Support national healthcare systems through reliable blood supply contributions.

To honour the generosity of participating employees, the Group provides refreshments, tokens of appreciation, and lucky draw prizes during each campaign. These gestures reflect the Group’s gratitude and help foster a culture of volunteerism and care within the organisation.

In addition to donating blood, employees benefit from mini health screenings and blood disease checks conducted by the collaborating hospital before and after donation. These health services not only ensure donor safety but also promote positive mental wellbeing, as many participants report a sense of fulfilment and emotional uplift from contributing to a life-saving cause.

Graduate Development Program ("GDP") and Internship Program

The Group aims to prioritise local employment and nurture local talent, particularly in critical operational areas. Through educational investment, it creates meaningful employment opportunities that support sustainable livelihoods, succession planning, and regional socio-economic growth.

GDP

The Group provides unwavering support for local youth, helping them realise their potential and nurturing their talents for long-term career success. The GDP is an 18-month structured initiative designed to prepare fresh graduates for the professional world and equip them with the skills and capabilities needed to thrive. Key highlights of the program are:

■ Structured Curriculum: Combines formal training, mentorship, and hands-on experience

■ Cross-functional Exposure: Participants work on real-world projects across various departments to gain broad operational insights

■ Leadership Development: Tailored to groom graduates for future leadership and subject matter expert roles within the organisation

■ Performance Assessment: Participants are evaluated throughout the program to track progress and readiness for future roles

At the end of the program, successful participants are offered career opportunities that match their skills and aspirations, while fulfilling the Group’s operational needs. This approach supports the Group’s strategy for:

■ Talent pipeline development

■ Succession planning

■ Local employment and community investment

The GDP reflects the Group’s commitment to building a resilient and future-ready workforce, contributing to both business sustainability and regional socio-economic development.

Internship Program

The Group offers internship opportunities to tertiary students, providing them with valuable exposure to the steel industry while fulfilling the industrial training requirements of their academic disciplines. These internships serve as a platform to:

■ Bridge academic learning with real-world experience

■ Introduce students to core operations and industry practices

■ Support local talent development and career readiness

Promising interns who demonstrate potential are often offered career opportunities within the Group upon graduation, contributing to a sustainable talent pipeline and reinforcing the Group’s commitment to local employment and succession planning.

Tree Planting

The Group believes that biodiversity conservation and environmental protection are essential for the survival of future generations. As part of its sustainability efforts, SSB organised a tree planting event in June 2025 in conjunction with World Environment Day.

This year’s event was especially meaningful as it was held outside company premises, at the edge of a mangrove swamp—a critical ecosystem. A total of 22 Bintangor trees were planted, chosen for their ecological compatibility, dense canopy, and strong root systems that help:

■ Prevent coastal erosion

■ Provide habitat for biodiversity

■ Strengthen mangrove ecosystem resilience

By planting native species like Bintangor, the Group ensures its restoration efforts are sustainable and beneficial to the natural environment, reaffirming its commitment to environmental stewardship.

E-Waste and 3R Waste Collection

E-waste is a broken, non-working or old/obsolete electric electronic appliance, such as television, computer, air conditioner, washing machine and refrigerator. The environment will be polluted if the disposal of e-waste is not properly managed. This will then affect human’s health and endanger life.

The Group recognises that e-waste is becoming a global issue, thus in our effort to protect the environment, the Group introduces E-Waste Collection Program on top of the normal 3R waste collection practice. The Group encourages our employees to send e-wastes, including e-waste of their neighbourhoods, to the Group. The collected e-waste is then disposed to the licensed e-waste collectors whilst 3R waste is via 3R waste collectors. The proceeds from the disposals are channelled to H2H as part of the community engagement programs.