In today’s rapidly developing society, the concept of sustainability in relation to our people is deeply interconnected, forming the foundation of our ESG principles. Sustainability ensures the long-term viability of our society, while we strive to embed the relevant skills, knowledge and well-being of our people, which we recognise as essential for sustainable development.

The Group is committed to fostering an inclusive and diverse work environment, recognising that this is crucial for building a resilient and sustainable organisation. By emphasising on ESG principles, we aim to create a positive impact on our community, environment and workforce, contributing to a balanced and sustainable future.

Our Approach

Every employee deserves to be treated with dignity and have their interests considered fairly. The Group maintains its commitment to continuously improve the welfare of its employees, which includes giving them a fair, respectable and safe workplace across all levels in the organisation. The Group’s commitment to human rights is aligned with HLMG’s Code of Conduct and Ethics, which applies to all employees.

Our approach is guided by the relevant laws in Malaysia, listed as below:

We maintain an environment that provides a strong sense of belonging, and being valued and respected amongst our employees and stakeholders, including our customers, business partners and suppliers. We expect our management to live by our values and demonstrate these behaviours. At Southern Steel, everyone is expected to live by our core values of honesty, integrity and respect for people in line with our Code of Conduct.   We work in line with local policies, laws and regulations. 

These are the major areas where our people strategies apply:

Cultivating our Group’s Core Values

To foster a healthy and sustainable workforce that values people, we continue to preserve our best practices and uphold the Group’s core values as below:

The Group commits to the principles as stated in our Labour Standards Statement, which was first introduced in FY2023. The said statement is available in English and Malay language and has been communicated to our employees and stakeholders, including business partners. We foster an inclusive and diverse work environment and support the labour rights of our employees. It is our belief that all employees should be treated with dignity, respect and fairness. 

In the Labour and Human Rights section of our Supplier Code of Conduct and Ethics, all forms of forced, abusive and illegal labour are prohibited. Our suppliers are expected to treat their employees (whether contractual or permanent) with fairness, dignity and respect, and do their best to provide a working environment that is free from discrimination and harassment. The suppliers shall ensure compliance with all applicable labour laws and regulations, including and without limitation, those in respect of minimum age, minimum wage and benefits, working hours and provident/retirement fund contributions.

The following principles reflect our values:

The Group places importance on fair working conditions. We do our best in supporting a workplace that is 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 in our hiring and employment practices such as promotions, rewards and accesses to training. It begins with the creation and promotion of an inclusive workplace, where all employees can perform at their best while valuing our differences and diversity. This is also reflected well in our employee engagement activities.

Employee Engagement

The Group engages with its employees to obtain valuable insights on what matters the most to them and to understand specific sustainability or employment issues through multiple sources and touchpoints, such as targeted engagement through focused groups and one-on-one interviews. Employees’ engagement activities, department meetings, feedback platforms and employees’ events are also some of the approaches taken.

The Group has taken action to address labour issues, including the prevention of child labour and forced labour, as well as supporting a living wage and has mechanisms to allow employee representatives to engage with company management. The Group 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. We provide oversight responsibility and resources in support of respect for human rights and in our day-to-day responsibilities, for relevant functions, we have open communications and direct engagement between workers, union representatives and management which form effective ways to resolve any human rights, workplace and compensation issues. Workers are able to openly communicate and share grievances with management regarding working conditions and management practices without fear of reprisal, intimidation or harassment.

We provide oversight responsibility and resources to ensure respect for human rights and the responsibility is assigned to the Group’s Chairman of the Board Audit and Risk Management Committee.  Any concerns or violations to the above can be reported directly to the Group’s Chairman of the Board Audit and Risk Management Committee through the whistleblowing platform that is stated in our Whistleblowing Policy, which is widely available in our company’s website.

For FY2024, there were no cases of discrimination, harassment or violations of human rights, child labour or forced labour being reported or recorded.

We prioritise employees’ well-being by adhering to stipulated employment laws, ensuring statutory payments and parental leaves, which are not only compliant but also reflective of our commitment to a supportive work environment. We promote healthy work-life balance in our efforts to eliminate excessive working hours so that our employees have sufficient rest and time outside of work to focus on their families and other interests. In support of employees’ health and well-being, we have also worked with a government body, PERKESO, to perform health screening for targeted age groups of our employees, to help detect and prevent any health risks on non-communicable diseases, such as diabetes, high blood pressure, and others.

To encourage people engagement within our Group, we have launched initiatives such as the Foreign Workers’ Hostel Competition.

Foreign Worker Engagement

To enhance the well-being of our foreign workers, we have launched the quarterly hostel competition. The judging criteria focus on cleanliness and organisation, health and safety, 5S and Kaizen improvements. The objective of this competition is to ensure safe, comfortable and clean accommodation for our workers.

Our Human Resources also organised grocery shopping as part of prize giving activities to the foreign worker winners.

Festive Seasons Employees’ Engagement Activities

Deepavali Celebrations

The vibrant spirit of Deepavali shimmered brightly as the employees came together at each of their operating sites to celebrate this cherished festival of light and togetherness. 

Chinese New Year Celebrations

Chinese New Year 2024 is the Year of the Dragon according to the Chinese zodiac and the Group celebrated the festive occasion together to strengthen the unity among our people.

BUBUR LAMBUK in conjunction with the month of Ramadan  

For the first time, the H2H Club organised a Bubur Lambuk cooking event for our employees at SSB's premises in conjunction with the month of Ramadan. A total of 1,050 parcels were distributed to our employees. With events like this, we hope to maintain the spirit of harmony and teamwork among our employees.

Hari Raya Celebrations

During this occasion, our premises were adorned with traditional Hari Raya decorations, creating a festive and welcoming atmosphere. Colourful lights, intricate patterns, and cultural ornaments transformed the space, reflecting the spirit of joy and togetherness.

Sports Employee Engagement Activities

The Hong Leong Group Sports Tournament 2024 commenced with round-robin matches at Kampar in January 2024, featuring a variety of sports including volleyball, football, futsal, sepak takraw, basketball, netball, badminton, and table tennis.

The final event unfolded in Shah Alam end of March 2024. Here, the finalists vied for their ultimate rankings in the sports previously contested in Kampar. Additionally, 5km run, tug of war and track and field competitions were also organised on the same day.

Despite the hot weather in Malaysia, the sports tournament was brimming with excitement, energy and enthusiasm as colleagues from various companies competed in diverse events. The event culminated with a grand prize-giving ceremony, where senior management members presented the medals to the deserving winners.

Workforce diversity has emerged as a key driver of success in today’s globalised and interconnected world. The Group continues to focus on employee diversity in order to bring unique perspectives, experiences and talents to the table.

The Group has created a workforce that reflects a mix of different ethnic origins and nationalities, aiming for inclusivity and equal opportunities regardless of race or nationality. Promoting ethnic diversity requires ongoing efforts and initiatives to eliminate biases and provide equal opportunities to foster a culture of inclusivity. The Group will continue to embrace the diversity of our employees. We celebrate Chinese New Year, Hari Raya Aidilfitri and Deepavali annually, embracing the diverse celebrations of our workforce.

Generally, the Group’s mix of employees at different age groups had remained fairly constant and healthy over the years:

Starting from FY2024, we further categorized our employee age information into different employee categories to understand more regarding our employee age demographic.

In terms of gender balance, we continuously strive to achieve a balance of genders at departmental and group levels. Although there are more male employees due to the nature of our business, we continue to make an effort to identify more female candidates for the executive and above levels and especially for technical positions, where female applicants tend to be fewer.

 Starting from FY2024, we further categorized our employee gender information into different employee categories to understand more regarding our employee gender demographic.

For FY2024, the Group expanded its age group and gender group reporting to cover the board of directors.

Employee retention is vital for sustaining a stable and productive workforce. Throughout the Group in FY2024, we achieved an improvement in the full-time staff turnover rate, reducing it to 7.5% compared to 9.6% in FY2023.

The ratio of permanent staff to contractors/ temporary staff stands at 75.2%:24.8% vs 76.7%:23.3% the previous year. Notably, we currently do not have any staff with disabilities. We remain committed to fostering a supportive and engaging work environment to retain our talent, focusing on their skills development and learning needs

Starting from FY2024, we began recording the total number of employee turnovers by category to identify trends and patterns within specific groups, helping us enhance retention strategies and improve workforce planning.

Learning and Development

The Group actively invests time and resources in employee development and training to enhance their knowledge and skills. We recognise that systematic and continuous training is essential for maintaining the efficiency, effectiveness, and growth of the company. Our training policy 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, taking into account 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 FY2024 to enhance their abilities and individual skills: 

In FY 2024, the Group recorded an overall improvement of a total of 19,544 training hours with an average of 11.1hours per employee and average of 1.4 days per employee. We will continue to focus on people development as a continuous effort to raise the employees’ service and skill levels to ensure a steady supply of talent for now and the future.

Starting from FY2024, we began recording the total hours of training by employee category to make informed decisions about resource allocation, ensuring employees have the necessary skills to perform their duties effectively.

The Group recognises that community is an integral part of our business. It is crucial for the Group to give back to the communities where we operate, contributing to a better and sustainable world.

Our Approach

The Group believes that every effort and initiative can make a meaningful impact in the communities we operate and serve. We respect our roles in society and strive to operate in a way that creates a more sustainable business and better shared future, making a difference and positive impact to people’s lives, communities and our planet.

The Group encourages participation in community investment works and cultivates a sense of responsibility among our employees toward local communities. The Group gives back to the community through community investment in 3 focus areas: Social Wellbeing and Development, Education, and Environment.

The programs for each focus area are reviewed annually and the summary of community investments are listed as follows:

The Group has a steadfast commitment to prioritising local employment and nurturing local talent, especially in the critical areas of our operations. The education programs and activities identified, not only support individual growth but also align with the succession planning strategy of the Group, whereby a steady pipeline of well-prepared, talented professionals is ready to contribute to the future success of the Group.

Our Value Creation

Here are some snapshots of the activities carried out in FY2024:

Orphanage and old folks home festive program

The Group is committed to supporting the underprivileged for sustainable livelihood and better quality of life. We visited orphanages and old folks' homes during major festivals, contributing cash donations, providing food, and organising fun activities for the residents. It was heartwarming to see their happiness despite the hardships they had endured.

The visits reflect the importance of social responsibility and demonstrate the impact that small acts of kindness could have on the lives of others.

The passion of the Group aligns with the rights outlined in the Convention on the Rights of the Child, emphasising that children have the rights to the best health care possible, access to clean water, healthy food, a clean and safe environment to live in, which translated as adequate standards of living, health care, education, and opportunities for play and recreation.

Blood donation campaigns

The Group considers donating blood as the most valuable gift that we can give to save lives. The Group held blood donation campaign bi-annually to raise awareness of the need for safe blood and blood products, in collaboration with government hospitals. The Group provided refreshments, appreciation gifts, as well as lucky draws to thank our employees for voluntarily contributing their life-saving blood.

During June 2024’s blood donation campaign, we had also pledges on organ donation by three of our employees.

Our employees who donated blood also benefited from the mini health screening and blood disease screening conducted by the collaborating hospital before and after the blood donation. Donating blood also creates positive feelings to blood donors and does wonders in the mental health and feeling of well-being.

Graduate Development Program (“GDP”) and Internship

The Group has a steadfast commitment to prioritise local employment and nurture local talent, especially on the critical areas in our operation. Our community investment in education provides employment opportunities to members of our community, where we not only empower them with sustainable livelihoods but also contribute to the overall economic growth and social well-being of the region.

·       GDP

The Group renders unwavering support for local youth in realising their potential, developing and nurturing their talents. The Group participated in the GDP rolled out by HLMG.  This is an 18-month development initiative designed to prepare fresh graduates for the working world and further develop their skills and capabilities. 

GDP is a structured program tailored to groom recent graduates for leadership and subject matter expert roles within the organisation. Formal training sessions and opportunities to work on projects or assignments that provide exposure to various aspects of the company's operations will be given to the graduates as part of the process to mould them as potential future leaders of the Group.

The GDP offers a comprehensive curriculum that combines hands-on experience, mentorship, and professional training. Participants will have the opportunity to work on real-world projects, gain insights from industry experts, and develop essential skills that will set them up for long-term success in their careers. The participants will be assessed as part of the program. 

At the end of the GDP program, the participants will be offered the opportunity to continue their career in a position that requires their capabilities, skills, and talents, while also fulfilling the needs of the Group. This aligns with our company’s strategy of building our talent pipeline, talent development and succession planning, which are essentials to the future success of the Group.

·         Internship

The Group also provides internship program to tertiary students, giving them exposure to the steel industry whilst fulfilling the requirement of industrial training of their academic disciplines.  Promising interns who have potential are often offered career opportunities of various vacant positions within the Group upon graduation. 

Tree Planting

The Group is convinced that caring for biodiversity and protecting the environment is vital for the survival of future generations.

On Earth Day 2024, SSB organised a tree planting event as part of our Penang state’s 1 Million Tree Planting event. We planted around 300 trees inside the company’s premises following a simple opening ceremony by our Group Managing Director.

This event contributed to the Malaysia’s Book of Records, as Penang has successfully planted 1 million trees in a day. These collective efforts demonstrate our commitment to environmental stewardship alongside economic excellence.

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 license e-waste collectors whilst 3R waste is via 3R waste collectors. The proceeds from the disposals are channeled to H2H as part of the community investment.

The Group adopted and implemented the HLMG 5S system for both office and plant since 2012 with target to prepare a conducive working environment and drive bottom-up approach of continual improvements in the areas of productivity, quality, cost, delivery, safety and moral.

The Group has an established 5S central steering committee to plan, execute and update the 5S activities of all operating companies. In FY2024, key 5S promotional and publicity activities across the Group are weekly 5S communication through email to all the office employees, 5S quiz, 5S puzzle games, Kaizen competition, rewards and recognition for the best 5S zone with the target to continue the momentum of employee participation in 5S activities. The Group also publishes Quarterly newsletter or E-newsletter to capture employees’ achievement in 5S.

In FY2024, all operating companies in the Group were audited by HLMG 5S auditors and were successful in sustaining 5S performance and rating in accordance to the HLMG 5S guideline.