SUSTAINABILITY PROGRESS
AND PERFORMANCE
Social
Aligning with UNSDGs:
Labour Practices and Standards
Formerly reported as Employment, this material matter has been expanded and renamed Labour Practices and Standards in
FPE 2025 to better align with Bursa Malaysia’s Common Sustainability Indicators and guidelines. The revised scope enables
ML to provide more comprehensive disclosures on workforce management, employee well-being, and labour rights across
our operations.
Labour practices remain fundamental to ML’s commitment to creating long-term value for our stakeholders and contributing
to the economic and social well-being of the communities where we operate. As a major employer within our operational
areas, we recognise that our employees are our most valuable asset. Their expertise, dedication, and collaboration drive
operational excellence, innovation, and sustainable business growth.
Providing meaningful employment opportunities supports not only individual livelihoods but also broader community
development. Through responsible employment practices, ML contributes to local economic participation, workforce
development, and improved living standards. By offering fair wages, safe working conditions, and opportunities for
professional growth, we cultivate a motivated and skilled workforce that supports the Group’s long-term resilience and
competitiveness.
Our approach to labour practices also reflects our commitment to the UNSDG8: Decent Work and Economic Growth, which
promotes inclusive economic development and productive employment opportunities.
ML implements a structured employment strategy focused on building a positive and inclusive workplace environment. Our
practices emphasise fair treatment, equal opportunities, and respect for employees at all levels. All employees are engaged
under formal employment arrangements, and during FPE 2025 there were no contract or temporary employees, reflecting
the Group’s commitment to stable employment relationships.
Recruitment and Retention
Maintaining a stable and engaged workforce remains
an important priority for ML, as it supports operational
continuity and long-term organisational resilience.
Monitoring employee turnover allows the Group to assess
workforce stability, identify potential areas for improvement,
and strengthen its talent retention strategies.
ML recognises that attracting and retaining the right talent
is essential to sustaining long-term growth. Guided by
applicable labour laws and employment regulations, the
Group is committed to protecting the rights of its employees
through fair, transparent, and responsible human resource
practices. ML’s Human Resources (HR) department ensures
that employees are treated with dignity, equity, and respect
across all levels of the organisation.
To support consistent workplace standards, ML has
established a comprehensive Employee Guidelines, which
outlines key policies, employee rights, responsibilities, and
workplace expectations. This framework promotes clarity
and alignment between employees and management while
reinforcing responsible employment practices across the
Group.
Beyond regulatory compliance, ML strives to cultivate a
supportive and inclusive working environment supported
by a holistic employee benefits framework. These include
healthcare coverage, insurance protection, parental
leave, annual and medical leave entitlements, as well as
performance-based appraisals that support professional
development and employee well-being. The Group also
maintains a three-month notice period for resignations and
terminations, ensuring transparency and facilitating smooth
workforce transitions.
In FPE 2025, ML recorded an overall employee turnover
rate of 27%, representing 108 employees who left the
organisation during the reporting period. In comparison, 56
resignations were recorded in FPE 2024. Monitoring these
trends enables the Group to better understand workforce
dynamics while strengthening employee engagement
initiatives, workplace conditions, and career development
opportunities. Through these efforts, ML remains
committed to fostering a supportive work environment that
encourages long-term employee retention while continuing
to attract skilled talent to support the Group’s operational
and strategic priorities.
Development and Workforce Capability
Developing the capabilities of our workforce is essential
to
sustaining operational efficiency and maintaining
industry competitiveness. ML invests in continuous learning
initiatives to equip employees with the knowledge and
technical competencies required to perform their roles
effectively. Throughout FPE 2025, the Group implemented
a range of structured training programmes covering areas
such as:
- Occupational safety and health coordination
- Technical and operational skills
- Sustainability awareness
- Climate change disclosure requirements
- Corporate compliance and regulatory development
These programmes support both regulatory compliance and operational excellence while ensuring employees
remain informed of evolving industry practices.
Human Rights and Responsible Labour Practices
ML believes that every individual has the right to work
in an environment founded on dignity, fairness, and
mutual respect. The Group is committed to upholding
internationally recognised human rights principles across its
operations and value chain.
Human rights considerations are embedded within our
workplace policies and daily operational practices, ensuring
that employees are treated with respect and provided with
a safe and supportive working environment. During FPE
2025, no substantiated complaints or violations relating to
human rights were reported across the Group’s operations.
ML also maintains a strict zero-tolerance policy towards
forced labour, bonded labour, and child labour. All
employment relationships are based on free and informed
consent and comply with the provisions of the Employment
Act 1955 and other applicable labour regulations.
The Group expects contractors, suppliers, and business
partners to adhere to the same standards, as outlined in ML’s
Worker Guidelines and procurement practices. Through
ongoing monitoring and engagement, we strive to ensure
that labour rights are upheld throughout our operational
value chain. In FPE 2025, no incidents or allegations of
forced or child labour were reported within ML’s operations
or supply chain.
Moving Forward
As ML continues to grow, strengthening our workforce
management practices will remain a key priority. We
will continue refining our talent attraction and retention
strategies while enhancing employee development
programmes to build a resilient and capable workforce.
Employee engagement will remain central to our efforts. Through open communication channels and regular feedback
mechanisms, we aim to foster a workplace environment where employees feel valued, supported, and motivated to contribute
to the Group’s success. By continuously improving labour practices and maintaining fair, inclusive employment opportunities,
ML reinforces its commitment to UNSDG 8 while supporting both employee well-being and long-term business sustainability.
Occupational Health and Safety
Occupational Safety and Health (OSH) is a critical
priority at ML, as it directly impacts the well-being of
our employees and the continuity of our operations.
Maintaining a safe and healthy working environment
enables us to protect our workforce from potential
hazards while supporting productivity and operational
reliability.
Given the nature of our timber and manufacturing
operations, safety management is particularly
important. ML therefore places strong emphasis on
implementing robust safety procedures, continuous
monitoring, and regular training to mitigate
workplace risks. By prioritising occupational safety,
we not only comply with regulatory requirements
but also reinforce a workplace culture built on
accountability, vigilance, and care for our employees
Building a Strong Health and Safety Culture
ML remains committed to providing and maintaining a
safe and healthy working environment for all employees.
Safety standards are embedded into daily operations and
supported by regular facility inspections, safety briefings,
and compliance monitoring. The Group’s Safety and Health
Department oversees the implementation of workplace
safety policies and ensures that operational procedures
adhere to relevant occupational safety regulations and
industry standards.
Beyond regulatory compliance, ML actively promotes a
culture of safety, care, and vigilance across all levels of the
organisation. Recognising that awareness and preparedness
are critical in preventing workplace incidents, the Group
conducts regular training programmes to equip employees
with the knowledge and skills necessary to respond
effectively to potential hazards and emergency situations.
These initiatives strengthen collective responsibility and
reinforce ML’s commitment to ensuring that every employee
plays an active role in safeguarding their own well-being
as well as that of their colleagues. The occupational health
and safety training programmes conducted throughout FPE
2025 are outlined below.
Kursus Penyelaras Keselamatan dan
Kesihatan Pekerjaan
Safety and
Health Officer Course
Site Safety
Supervisor Course
Internal Fire Prevention
and Protection Training
Record on Work-related Injuries
ML places strong emphasis on maintaining a safe and
incident-free workplace. The Group actively monitors and
records key occupational health and safety performance
indicators, including Lost Time Injuries (LTI), as part of its commitment to transparency and continuous improvement
in workplace safety.
For FPE 2025, ML recorded zero Lost Time Injuries (LTIs)
across its operations. This reflects the Group’s strong
safety culture, consistent adherence to established safety
procedures, and the collective vigilance of employees in
maintaining a safe working environment. The achievement
also highlights the effectiveness of ML’s preventive
measures, regular safety training, and ongoing employee
engagement in health and safety initiatives.
Moving Forward
ML remains committed to continuously strengthening
its occupational safety and health framework. Moving
forward, we will continue to conduct regular safety audits
and risk assessments, enhance safety training programmes
for employees, improve communication and enforcement
of workplace safety protocols as well as explore new
technologies and equipment to further strengthen
workplace safety. Through these efforts, ML aims to maintain
50
a proactive safety culture that prioritises the protection,
well-being, and long-term health of our workforce.
Diversity, Inclusions and Indirect Economy
Diversity and inclusion are essential to building a resilient and forward-looking organisation. By embracing individuals from
different backgrounds, perspectives, and experiences, ML strengthens its ability to innovate, collaborate, and adapt within
a dynamic business environment. The Group is committed to ensuring equal opportunities for all employees regardless
of gender, ethnicity, or age. This commitment fosters a workplace culture where individuals feel respected, valued, and
empowered to contribute meaningfully to the organisation.
Board Composition
As the highest governing body, the Board plays a pivotal role in shaping ML’s strategic direction and long-term sustainability.
Diversity at this level is vital to ensure balanced perspectives, effective oversight, and sound decision-making. In line with
the Malaysian Code on Corporate Governance (MCCG) 2021, the Group recognises the importance of maintaining a diverse
Board composition in terms of gender, age, experience, and professional background. ML reports on the composition of
its Board by gender and age group, demonstrating its commitment to transparency, inclusivity, and alignment with best
Vgovernance practices. This approach ensures that the Board reflects the broad range of insights necessary to navigate the
evolving business landscape and deliver sustainable performance.
Community Engagement
Community engagement is an integral part of ML’s sustainability approach. The Group recognises that long-term business success is closely linked to the well-being of the communities in which we operate. By maintaining open dialogue and
collaborative relationships with local stakeholders, ML aims to ensure that our operations generate meaningful and lasting social value.
Community-focused Initiatives
During FPE 2025, ML continued to support a range of
initiatives that contribute to community development and
social well-being. These initiatives include:
- Stakeholder Engagement Forums: Organising dialogues and meetings with local communities, including orang kampung, to understand their needs, gather feedback, and foster collaborative relationships.
- Student Internship and Experiential Learning Programs: Providing practical work experience for students to bridge the gap between education and employment, while building future-ready talent.
- Employee-Led Community Giving Initiatives: Implementing a donation-matching scheme to amplify employee contributions to community-focused charitable activities.
During the financial period, the Group contributed RM
1,700 in donations to support community programmes and
charitable causes.
A total of RM1,700 was invested in community
programmes during FPE 2025, underscoring
ML commitment to supporting social well
being and growth
Moving Forward
Moving forward, ML will continue strengthening its
engagement with local communities through collaborative
initiatives and ongoing dialogue. Our focus will remain
on enhancing partnerships with community stakeholders,
supporting education and youth development initiatives
and expanding community development programmes
where possible. Through these efforts, ML aims to create
sustainable social value while maintaining its role as a
responsible corporate citizen.
SUSTAINING NATURE,
ENGINEERING THE FUTURE
As we conclude this year’s Sustainability Report, ML reaffirms its commitment to advancing environmental, economic, social,
and governance (EESG) performance across all aspects of our operations. While we have made meaningful progress, we
recognise that the journey toward sustainability is ongoing, presenting both challenges and opportunities that will shape our
long-term growth.
Key challenges include verifying the sustainability credentials of our suppliers and maintaining a robust, transparent supply
chain. Achieving this requires consistent auditing, capacity-building, and long-term partnerships with stakeholders who share
our dedication to responsible practices. At the same time, we continue to address the environmental impact of our energy
intensive manufacturing processes, striving to reduce our carbon footprint through efficiency improvements, renewable
energy adoption, and cleaner production technologies.
Compliance with environmental regulations, occupational health and safety standards, and social responsibility obligations
remains a priority. Through ongoing training, engagement with regulators, and regular audits, ML ensures that its operations
meet and exceed legal and ethical expectations while reinforcing a culture of safety, fairness, and accountability.
Looking ahead, we see opportunities to innovate and elevate our EESG initiatives. Advancing green manufacturing practices,
promoting employee participation in sustainability, and collaborating with industry partners, NGOs, and academic institutions
will be central to our strategy. These efforts will reduce environmental impact, enhance social value, and strengthen ML’s role
as a responsible industry leader.
Guided by our principle of Sustaining Nature, Engineering the Future, we will continue embedding sustainability into every
facet of our business. By making thoughtful decisions today, ML is building a resilient, inclusive, and environmentally conscious
tomorrow, ensuring that our growth delivers lasting benefits for the Company, the communities we serve, and the natural
environment that sustains us.
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