Annual Report 2023 - Part 1

INSIDE THIS REPORT
OVERVIEW 2-7
2 About Us
3 Our Business
4 Financial Highlights
6 Key Milestones
7 Corporate Structure
VALUE CREATION 8-15

8 Our Business Model
24th
10 Stakeholders Engagement
MANAGEMENT DISCUSSION AND ANALYSIS 16-23

16 Operating Environment: Key Market Trends ANNUAL
19 Review of Financial Performance
22 2024 Outlook & Prospects GENERAL
SUSTAINABILITY STATEMENT
24 What Sustainability Means to Us
24-107
MEETING
26 Our Approach to Sustainability
27 Sustainability Governance Structure
32 Supporting Sustainable Development Goals
33 Our Strategic Goals, Sustainability Targets and Performance
35 How We Manage Sustainability Issues
36 We Care for Environment
65 We Care for Business Broadcast Venue:
77 We Care for People Lot 9-11
99 We Care for Society Menara Sentral Vista,
104 Performance Data Table
No.150, Jalan Sultan
Abdul Samad,
OUR LEADERSHIP 108-120 Brickfields,
108 Directors’ Profile 50470 Kuala Lumpur
119 Key Senior Management’s Profile
Date:
GOVERNANCE FRAMEWORK 121-171 21 June 2024
121 Corporate Governance Overview Statement
150 Audit Committee Report Time:
155 Statement of Risk Management and Internal Control Friday,
170 Additional Compliance Information 10:00 am
FINANCIAL STATEMENTS 172-280 Meeting Platform:

Dvote Online website at
https://www.dvote.my
OTHER INFORMATION 281-292
281 Corporate Information
282 Analysis of Shareholdings
285 Analysis of Warrant Holdings
287 Notice of Annual General Meeting
Form of Proxy
Scan the QR code to

download our Annual Report
2023 or visit our website
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report-presentation/
www.kelington-group.com
K E L INGTON GROUP BERHAD
OVERVIEW
ABOUT US
24 Years
OUR VISION
To be a sustainable, leading and well-diversified
of Engineering high-technology Company in the Asia Pacific

region.
Excellence OUR MISSION
At Kelington Group Berhad, Cultivate KGB as a profitable organisation that

is continuously investing in new technology,
we are proud to be industry
delivering world class quality services to meet our
leaders in providing Ultra High customers’ requirements without unnecessary
Purity (“UHP”) gas and chemical harm, ensuring safety and cost effectiveness.
delivery solutions. With a relentless
commitment to innovation, quality,
OUR CORE VALUES
and customer satisfaction,
we have established ourselves
as trusted partners to businesses
across a wide range of industries. BUILDING PARTNERSHIP
Commitment to create a
Originally founded in 1999, Kelington Group Berhad (“KGB” network of shared success.
or the “Company”) commenced operations as one of the
leading providers of Ultra High Purity (“UHP”) gas and
CONTINUOUS
chemical delivery solutions for the high technology industry. IMPROVEMENT
Over the years, the Group has increased its engineering Always pushing the
capabilities and expanded its service offering to cater to a
boundaries of what’s
diverse range of clients.
possible
The Group is positioned as a one-stop facility solution
provider of turnkey engineering services from the initial ENCOURAGE INNOVATION
system design up to maintenance and servicing after
completion. Establish a workplace that
nurtures creativity and
In addition to that, the Group is involved in the Industrial empowers individuals to
Gases business, mainly providing on-site gas supply as shape the future.
well as manufacturing Liquid Carbon Dioxide (“LCO2”).
SAFETY FIRST
To-date, the Group has accumulated a vast track record
of completed projects for a myriad of international clients
Committed to being
in Malaysia, China, Taiwan, Singapore, Philippines and
responsible stewards of
Indonesia.
safety in everything we do.
RM1.6 BILLION RM1.4 BILLION

REVENUE MARKET CAPITALISATION
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Annual Report 2023
OUR BUSINESS
With a dedicated workforce of approximately 800 professionals, we maintain regional offices in Malaysia, Singapore,
China, and Taiwan, enabling us to serve our clients efficiently across multiple locations.
ENGINEERING BUSINESS
01 02 03
ULTRA HIGH PROCESS GENERAL
PURITY ENGINEERING CONTRACTING
We engineer solutions We engineer and We provide general
that ensure safe construct mechanical contracting works
handling of the delivery and electrical systems encompassing, civil
and distribution of that support industrial and mechanical and
ultra-high purity gases processes across many engineering services to
and chemicals all the sectors. We offer custom construct specialised
way from source to integrated process facilities such as clean
equipment to waste skid fabrications all the rooms and Research &
disposal. (ie. wafer way up to large scale Development (“R&D”)
fabrication). constructions. centers.
Revenue
62% 8% 23.0%
RM1,006.0 mil RM123.9 mil RM370.7 mil
We Serve
Semiconductor Oil and gas, Manufacturing
players, Electronic petrochemicals, facilities and
manufacturers, industrial Industrial plants.
Gas Plants, etc. plants, etc.
INDUSTRIAL GASES
01 02 03
MANUFACTURING ON-SITE TRADING OF
OF LIQUID CARBON GAS SUPPLY SPECIALTY GASES
DIOXIDE AND DRY ICE We invest, operate and We distribute specialty
We manufacture and maintain on-site gas gases via portable high-
distribute liquid carbon generators via supply pressure gas storage
dioxide and dry ice to scheme contracts to tanks to various users.
various users. various users.
Revenue
7%
RM113.8 mil
We Serve Semiconductor players, Electronic manufacturers, Resellers,

Food & Beverages sector, commercial businesses etc.
3
OVERVIEW
FINANCIAL HIGHLIGHTS
FINANCIAL YEAR ENDED 31 DECEMBER

2019 2020 2021 2022 2023
Revenue (RM’000) 379,768 394,599 514,554 1,278,837 1,614,449
Profit Before Taxation (RM’000) 31,579 20,945 35,694 74,391 133,903
Profit After Taxation (RM’000) 23,920 17,591 29,700 58,506 106,018
Shareholders’ Funds (RM’000) 155,534 168,329 192,747 243,115 338,392
Total Assets (RM’000) 303,055 350,343 403,968 1,055,641 1,071,328
Net Assets Per Share (RM)* 0.25 0.26 0.30 0.38 0.52
Basic Earning Per Share
(RM’Cent)*# 5.19 3.67 6.0 8.67 16.17
Dividend per share (RM’Cent) 2 1.5 1.5 2.5 4.0

Number of Shares in Issue
(’000)*# 620,678 643,007 643,007 643,007 644,797
Share Price (RM)*^ 0.61 0.831 1.72 1.37 2.17
Market Capitalisation (RM’000)#^ 378,614 534,339 1,105,972 880,920 1,399,209
* The comparative net assets per share, basic earnings per share, number of shares in issue and share price have been
restated to reflect the effect of bonus issue on the basis of one new ordinary share for every one existing ordinary share
which was completed on 2 July 2021.
# Based on Company’s issued and paid-up share capital, excluding treasury shares.
^ As at the last trading day of the financial year.
RM2.42 MILLION
REVENUE PER EMPLOYEE
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Annual Report 2023
FINANCIAL HIGHLIGHTS
REVENUE PROFIT BEFORE TAXATION

(RM’000) 1,614,449 (RM’000)
133,903
1,278,837
74,391
514,554
31,579 35,694
379,768 394,599
20,945
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
PROFIT AFTER TAXATION SHAREHOLDERS’ FUNDS

(RM’000) (RM’000) 338,392
106,018
243,115
192,747
58,506 168,329
155,534
29,700
23,920
17,591
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
TOTAL ASSETS SHARE PRICE

(RM’000) (RM)
1,071,328 2.17
1,055,641
1.72
1.37
403,968 0.831
350,343
303,055 0.61
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
5
OVERVIEW
KEY MILESTONES
Incorporation Secured a large value contract to

of Kelington Achieved a record provide turnkey construction and
1999 2018 high in terms of net profit engineering services in Singapore
Technologies
and new order secured for one of the world’s largest gas
Sdn Bhd
companies
Commencement of
Secured our FIRST Secured our Operation of the new Carbon
2019
2000 semiconductor FIRST 10 - year industrial gas Dioxide Recovery Plant
project in Malaysia supply contract in Malaysia
Commencement of Operation of
2017 Signed a 15 - year agreement the new Dry Ice Plant
with PETRONAS to purchase
Carbon Dioxide (CO2) waste Commencement of
Set up office in gas for our manufacturing of Operation of the new UHP
2002 liquid CO2 gas business fabrication facility in China
Shanghai, China
Incorporated subsidiary Secured the largest gas hook-up

to commence new business contracts thus far for KGB from
Secured our FIRST 2016 2020 the largest semiconductor foundry
activity involving the supply
2003 TFT-LCD project in of industrial gases company in China
Taiwan
Achieved a new record
high for new orders secured in
Set up subsidiary FY2020 at RM 490 million
Secured our FIRST in Philippines
First full year operation of our
2004 semiconductor 2015 Secured large value project for new liquid CO2 plant and started
project in China a wafer fabrication facility exporting liquid CO2 products
in Singapore
Set up Secured our FIRST chemical Secured a landmark

2006 an office processing project in RM 420 million contracting project
2021
in Singapore Malaysia from world leading data storage
devices and solutions specialist
Secured our FIRST
pharmaceutical project in
Secured Malaysia New LCO2 plant in Kerteh,
2007 FIRST solar energy 2014 Terengganu with 70,000
Secured our FIRST research
project in China tonnes / yr capacity, expected to
and development complex
be completed in 4Q 2023
project in Singapore
Achieved a new record high for
Secured our FIRST military
new orders secured in FY2022 at
Secured the FIRST project in Taiwan
2022 RM 1.85 billion
2008 renewable energy
project in Singapore Received a Silver award
Secured a 2+1 year contract
for “most improved performance
from one of the world’s largest
over three years” in the Edge ESG
chip makers
Listed on the ACE Awards 2022 for companies with
Market of Bursa Secured our FIRST healthcare RM 300 million - RM 800
2009 project in Shanghai, China million market capitalisation
Malaysia Securities
Berhad 2013 Secured our FIRST oil & gas
related project in Malaysia Net profit surpassed the RM100
million mark for the first time.
Secured project Secured our FIRST aerospace
from the largest related project in Singapore FTSE4Good Bursa Malaysia ESG
2010 wafer fabrication rating has improved to four stars.
Secured our FIRST palm oil This places the Group within the
foundry in China
refinery project in Malaysia top 25% for ESG performance
among public listed companies in
Secured our FIRST 2023 the FBM EMAS, as assessed by
glass manufacturing Transferred to the Main Market
of Bursa Malaysia Securities FTSE Russell.
plant project in Vietnam
2011 Berhad Maintained its position as
Secured our FIRST 2012 a constituent of both the
Expanded business offerings by
bioscience project in FTSE4Good Bursa Malaysia Index
acquiring Puritec Technologies
Singapore and FTSE4Good Bursa Malaysia
(S) Pte. Ltd. in Singapore
Shariah Index.
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Annual Report 2023
CORPORATE STRUCTURE
Kelington Group Berhad

& Branch in Taiwan
Kelington Technologies (Sarawak)

100% Kelington Technologies Sdn Bhd. 100% Sdn. Bhd.
(Incorporated in Malaysia) (Incorporated in Malaysia)
Puritec Technologies (M) Sdn. Bhd.

100% Puritec Technologies (S) Pte. Ltd.
(Incorporated in Malaysia) 100%
(Incorporated in Singapore)
Kelington Engineering (S) Pte. Ltd. Kelington Solomon Philippines, Inc.

100% 90%
(Incorporated in Singapore) (Incorporated in Philippines)
Kelington Engineering (HK) Limited

100% (Incorporated in Hong Kong)
Become a subsidiary on 5 September 2023
Kelington Engineering (Germany) GmbH

100% (Incorporated in Germany)
Become a subsidiary on 6 March 2024
Kelington Trading (Shanghai) Co., Ltd

100%
(Incorporated in the People’s Republic of China)
Kelington Engineering (Shanghai)
100% Co., Ltd
Kelington System Integration
100% (ChuZhou) Co., Ltd
Ace Gases Sdn. Bhd. Ace Gases Marketing Sdn. Bhd.

90.71% 100%
(Incorporated in Malaysia) (Incorporated in Malaysia)
Ace Gases Marketing (S) Pte. Ltd

100%
(Incorporated in Singapore)
Hiti Engineering (M) Sdn. Bhd.
100%
(Incorporated in Malaysia)
Kelington Analytical Services Cryotech Logistics Sdn. Bhd.

100%
Sdn. Bhd. (Incorporated in Malaysia)
55%
(Incorporated in Malaysia)
Ceased to be a subsidiary on 4 October 2023
Kelington Nawik Sdn. Bhd.

90% (Incorporated in Malaysia)
Dissolved on 5 April 2024
7
VALUE CREATION
OUR BUSINESS MODEL
OUR CAPITALS
VALUE
F FINANCIAL CAPITAL
• Shareholder’s Equity RM338.4 million

• Retained Earnings RM204.8 million
CREATION
• Banking Facilities
approximately RM1.0 billion
• Revenue RM1.6 billion
PROCESS
M MANUFACTURED CAPITAL
• RM168.8 million worth of properties

and equipment.
I INTELLECTUAL CAPITAL 01 02 03 04
• 24 years of industry experience. INPUTS BUSINESS OUTPUTS DELIVERING

• UHP & cleanroom protocols. ACTIVITIES VALUES
• Training Modules for technicians.
• Data, process & systems.
Vision & Mission

H HUMAN CAPITAL Primary Activities CARE FOR
Supporting Activities BUSINESS
• >700 employees.
• RM450,000 invested in training & Governance
development. Strategy & Resources
Allocation CARE FOR
Risk & Opportunities PEOPLE
S SOCIAL CAPITAL
Performance
Management
• Shared values, norms, outlook in life.
• Government agencies & NGOs. CARE FOR
ENVIRONMENT
Supporting SDGs
N NATURAL CAPITAL Managing Impact

CARE FOR
Sustainable Value
• Minerals and metals as essential SOCIAL
Creations
components of project materials.
• 16,329 MWh electricity consumption.
• 76,813 m3 water consumption.
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Annual Report 2023
OUR BUSINESS MODEL
VALUE DELIVERED TO OUR STAKEHOLDERS AND THE ENVIRONMENT
SHAREHOLDERS • Financial performance & • Dividend payment

growth potential • Corporate Governance
• Increased share price • Risk Management
ENVIRONMENT • Strive to lower carbon emissions and waste in our operations.

• Promote and installed green exhaust systems.
• Value engineering to reduce environmental impact and optimise resources
utilisation.
CUSTOMERS • Offer customisable solutions tailored to the specific needs of

semiconductor and biotechnology manufacturing facilities.
• Deliver reliable UHP gas and chemical delivery systems on schedule.
• Construction of spherical ball tanks serves multiple industries,
providing customers with storage and handling solutions for
a diverse range of liquids and gases.
EMPLOYEES • Competitive Compensation.

• Employee benefits and perks.
• Career Development & Opportunities.
• Supporting work-life balance through flexible work arrangements.
• Prioritising employee health & safety, fostering positive work environment.
• Recognition and rewards.
COMMUNITIES • Engaging employees in corporate social responsibility initiatives.

• We are taking proactive initiatives to facilitate the transition to a
low-carbon economy, aiming contribute to building stronger,
healthier, and more resilient communities for the benefit of present
and future generations.
• Promoting social justice, fair labour practices via ethical supply
chain management.
VENDORS • Increased innovation via collaboration and synergy.

• Fair and timely payment.
• Transparent communication and build sustain and grow partnerships.
• Continuous supply chain development.
FINANCIAL • Commitment to build a resilient and profitable business.

INSTITUTION • Understand the expectations of bankers and work collaboratively
to address challenges and seize opportunities.
• Implementing robust risk management practices.
GOVERNMENT / • Contribute to economic growth and contribute to increased tax

REGULATORS revenues for governments.
• Contribute to achieving national and local environmental goals.
• Compliance with regulations standards and contribute to the overall
well-being of society.
9
VALUE CREATION
STAKEHOLDERS ENGAGEMENT
Kelington Group Berhad (“Kelington” or “KGB”) regularly engages with its stakeholders in soliciting a wide range of
inputs, perspectives and other types of feedback towards guiding its sustainability journey. Key stakeholders were
identified by mapping their level of influence on and level of interest in the Company to ensure that the Group is inclusive
in its approach and remains on track towards ensuring value creation for both the Group and its stakeholders.
EMPLOYEES
Employees are the driving force behind KGB’s operations. Sustaining operations relies heavily on effective leadership.
Engagement KGB's Response

Channels & Frequency
• Actively engage employee to promote a strong dedication to high performance.
• Annual Performance • Regular quality, environmental, safety and health training to raise awareness
Appraisal Review on potential risks.
• Annual Staff Meeting • Educate and raise awareness of urgent need to address climate change.
• Daily Toolbox meeting • Leadership training and personal development workshops to enable personal
• Weekly Safety & Health growth.
Committee Meeting at Sites • Recognising and rewarding employees’ contribution.
• Bi-annual Safety & Health • Competitive compensation and benefit packages for employees.
Communication Report • Maintain an inclusive workplace culture that leads to more creativity and
• Always welcome employees’ innovation.
feedback
• Annual Dinner & Festive Value Created for Stakeholders
Celebration
• Environmental Value: Promote sustainability and minimising waste and
As & when required: pollution.
• Social Value: Promote diversity and inclusion within the workforce, comply
• Recreational, training and with rules and regulations.
employee engagement activities. • Employee Value: Fair wages and benefits, offering opportunities for career
• Environment, Safety & growth and development, ensuring health & safety at workplace, promoting
Health Campaign work-life balance and employee engagement activities.
• On-job training & workshops
• Internal Newsletters
Material Matters Concerned: Capital:
SI Pollution & Waste Management • Contribute to KGB’s H

2 - environmental compliance
• Contribute to S by fostering internal relationships,
SI Occupational Safety & Health demonstration of leadership etc.
5 - safe & humane workplace
• Contribute to I by generating innovative ideas,
SI Talent Management & Development conducting R&D activities etc.
6 - career enhancement
SI
7 Diverse & Inclusive Workplace
SI Respect Human Rights

8 - fair & equitable compensation
SI Quality Products & Services

13 - delivering positive customer experience
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Annual Report 2023
CUSTOMERS
Kelington has a vast customer base across different geographies with a majority being multinational corporations that are
committed to high standards for social, safety, health and environmental practices. We support our customers to achieve
sustainable manufacturing process.

• Engaging in dialogue to identify customer expectations and preferences, and pain points.
As & when required: • Provide customised solutions tailored to meet the unique needs of customer.
• Prioritise quality assurance and adhering to industry standards and best practices.
• Qualification process • Timely delivering projects.
• Regular project • Maintain open lines of communication with customers, providing regular updates, addressing
meetings concerns promptly and transparent about project progress, challenges, and outcomes.
• Customer Visit • Commitment on sustainability management to meet customers’ expectation.
• Customer Satisfaction • Committed to continuous improvement.
Surveys
Value Created for Stakeholders
• Technical Expertise & Support: Provide customers with access to technical expertise,
support, and guidance throughout the project lifecycle.
• Quality & Reliability: Delivering high-quality, dependable solutions and help customers
minimise downtime, reduce risks, and enhance operational efficiency.
• Innovation & Sustainable Practices: By leveraging cutting-edge technologies, expertise,
and design approaches, we integrating resilience measures into design and planning and
help customers minimise risks, enhance safety, and protect investments.

SI Pollution & Waste Management • Contribute F via revenue
2 - environmental compliance and profit.
SI Respect Human Rights • Contribute to S through

8 - social compliance brand advocacy.
SI Sustainable Supply Chain

9 - risk management
SI Quality Products & Services

13 - ensuring customer satisfaction
SI Technology and Operational Innovation

14 - fulfil the high expectation of semiconductor and electronics industries
11
VALUE CREATION
SHAREHOLDERS / INVESTORS, ANALYSTS / BANKERS
Investors and bankers investing in the Group’s business and we have obligations rooted in the principles of transparency, accountability,
and fiduciary duty.

• Meeting or exceeding financial targets.
• Annual General • Disclosures of transparent and accurate information about our financial health,
Meeting operations and strategic direction.
• Annual Report • Rewarding shareholders according to dividend policy.
• Quarterly Analyst • Maintaining good corporate governance practices.
Briefing • Addressing ESG issues.
• Manage risks and prepare to handle unexpected challenges.
As & when required: • Ensuring adherence to relevant rules and regulations.
• Overseeing compliance with bank covenants.
• Company • Respect shareholders’ right.
announcements
and press released Value Created for Stakeholders
• Updated investor
relations webpage • Shareholder Value: Financial returns on investment such as capital appreciation and dividends.
• Social media platform • Government and Regulators: Compliance with laws and regulations, contributing to
economic growth and stability.
• Environmental Value: Enhance environmental value through management of carbon
footprint, adopting of sustainable practices, and active measures to mitigate climate
change.

SI Preventing Climate Change • Direct contribute to F via investment / bank facilities.
1 - manage environmental risks
• Indirectly contribute to the acquisition and development
SI Pollution & Waste Management of M and I .
2 - environmental compliance • Contribute to S by supporting long term sustainable
growth and value creation.
8 - social compliance
SI Governance & Ethics

11 - safeguarding shareholder interests
SI Economic Growth & Profitability
12
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Annual Report 2023
CONTRACTORS, INDUSTRY PARTNERS AND SUPPLIERS

We build partnerships and leverage external expertise, resources and capabilities to deliver high quality solutions on time and
within budget.

• Strive to be transparent when dealing • Proactively identify and mitigate risked
• Annual Suppliers with subcontractors and supplier. associated with vendors including potential
and Sub-Contractors • Fair tender practice and ensure delays, cost overruns and quality issues.
Evaluation transparent procurement process. • Monitor performance via annual vendor
• Setting realistic expectations regarding evaluation.
As & when required: project deliverables, timelines and • Communicate Kelington’s Code of Ethics
performance standards. and Conduct and Company Policies.
• Communication
of Kelington’s Value Created for Stakeholders
Expectations
• Vendors Due • Economic Value: Provide business opportunities which in turn generates revenue for them.
Diligence • Social Value: Promote social responsibility such as fair labor standards, environmental
Questionnaire sustainability, and community involvement.
• Innovation and Collaboration: Leverage expertise and improved products and services.
SI Pollution & Waste Management SI Sustainable • Contribute to M to KGB via supply raw
2 - environmental compliance 9 Supply Chain materials and components; provide production
equipment, machinery and tools.
SI Occupational Safety & Health SI Governance &
• Contribute to KGB’s I via provide access to
5 - safe & humane workplace 11 Ethics
innovative technologies and sharing of knowledge.
SI Respect Human Rights SI Quality Products • Contribute F via trade credit and early
8 - social compliance 13 & Services payment discounts.
GOVERNMENTS / REGULATORS
Governmental bodies regulate day-to-day business activities of Kelington and we are committed to adhering to all relevant local,
national, and international laws and regulations.

• Prioritising legal adherence. • ISO 14001 environmental
As & when required: • Disclosure accurate and timely information. management system certification.
• Proactive risk management.
• Submission of • Upholding ethical standards and contribute
statutory documents positively to the communities where we operate.
such as financial
reports, tax filings,
permits and licenses.
• KGB align with government priorities related to sustainable development and social
equity via managing carbon emissions, conserving natural resources, supporting local
communities, and promoting diversity and inclusion.
• Demonstrate commitment to compliance and accountability.

SI Pollution & Waste Management • Contribute S via infrastructure
2 - governing environmental protection development, healthcare and social services,
implement labor market regulations etc.
SI Occupational Safety & Health SI Governance & • Contribute I of KGB via education and
5 - governing workplace safety 11 Ethics R&D funding.
- create responsible • Government enacts regulations and policies
SI Respect Human Rights business to protect natural resources, mitigate
8 - protecting human rights environment pollution and preserve biodiversity.
13
VALUE CREATION
LOCAL COMMUNITIES
KGB is dedicated to actively fostering social economic development through sustainable practices, job creation, and community
engagement initiatives.

• KGB provide employment opportunities and offering training program to enhance career
As & when required: path.
• Prioritising local suppliers and contractors.
• Community • Established working group to implement community investment programme.
Investment • Provide medical benefits to employees and their immediate family members.
Programme
• Local employment Value Created for Stakeholders
and internship
opportunities • Job creation and improving economic well-being of individuals and families in the
community.
• Enhancing overall human capital of the community through investment in training and
development programs.
• Stimulate economic growth by generating revenue, paying taxes and supporting local
suppliers and business.
• Address pressing social and environmental issue via community investment programme.
• Protect natural resources and mitigate the negative impacts of business activities.
• Contribute to improving the health & well-being of individuals and families in the community
via employee wellness program.

SI • F : from retail investor.
1 Preventing Climate Change
SI • H : The skills, knowledge, and expertise of local

2 Pollution & Waste Management residents contribute to the success of KGB business in
the community.
SI
8 Respect Human Rights
• S : provide valuable support, connection and resources.
SI
10 Community Investment • N : natural resources and environmental assets utilised.
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Annual Report 2023
NON-GOVERNMENTAL ORGANISATIONS
NGOs serve as a crucial link connecting KGB with other stakeholders and offer valuable insights into our social and environmental
initiatives.

• Implement sustainability initiatives that align with the goals and priorities of NGOs.
• Making public statement on sustainable development and climate change.
As & when required:
• Participated in campaigns aimed at promoting sustainable development and environmental
conservation.
• Discussion on
collaboration and Value Created for Stakeholders
partnership
• Support campaign • Stakeholder engagement and trust building.
of environmental • Foster positive workplace culture.
sustainability • Long term value creation for investors.
• Donations and • Supplier diversity and inclusions.
sponsorships • Create positive impacts on community well-being and quality of life.

SI
1 Preventing Climate Change • Wealth of H .
SI
Pollution & Waste Management • S : extensive networks and relationships with diverse
2
stakeholders.
SI
8 Respect Human Rights • I : conduct research, gather data, and develop
innovative solutions to address social, environmental,
SI
Community Investment and economic challenges.
10
SI
11 Governance & Ethics
MEDIA
The Media has great influence over the public perception of the Group.

• Providing access to key executives and spokespersons and ensure that accurate and
• Quarterly press balanced information is conveyed to the public.
released on financial • Transparent and open in communication.
results • Leverage social media platforms to engage with the media and the public, share news
and updates.
As & when required:
• Interviews
• Increases the visibility of KGB, reaching a wider audience of stakeholders.
• Media inquiries
• Timely and relevant information dissemination.
• Influencing market perceptions.
• Engaging stakeholders.
SI Pollution & Waste SI Governance • Brand visibility and awareness leading to increased
2 Management 11 & Ethics market demand and investor interest.
• Favourable media coverage attract investment capital.
SI Occupational SI Economic Growth
5 Safety & Health 12 & Profitability

8
15
MANAGEMENT DI SCUSSI O N AND ANALYSI S
MANAGEMENT DISCUSSION AND ANALYSIS
STRATEGIC OVERVIEW:
OPERATING ENVIRONMENT: KEY MARKET TRENDS
IN 2023, THE GLOBAL ECONOMY GREW BY 3.0%, A SLOWDOWN FROM

THE 3.5% EXPANSION OBSERVED IN 2022. THIS WAS LARGELY DRIVEN
BY AGGRESSIVE MONETARY POLICY MEASURES TO CURB INFLATION
AND ESCALATING GEOPOLITICAL TENSIONS THAT BROUGHT ABOUT
UNCERTAINTIES AND DISRUPTED GLOBAL TRADE.
The Malaysian economy grew 3.7% in 2023, coming in Kelington’s strategic diversification into both engineering
below target of 4% to 5% due to “prolong weakness” of services and industrial gas manufacturing creates a
external demand. Growth moderated from 8.7% pace balanced portfolio for long-term success. Engineering
recorded for the previous year amid a challenging services provide project-based income, while industrial
external environment, mainly due to slower global trade, gas manufacturing ensures a steady stream of revenue,
geopolitical tensions and tighter monetary policies. strengthening our financial resilience and growth potential
across diverse markets and sectors. This balanced
The semiconductor industry experienced a contraction approach allows us to capitalise on opportunities across
in global sales, totalling $526.8 billion in 2023. This various economic cycles.
represented an 8.2% decline from the record-breaking
$574.1 billion sales figure in 2022. During the year, the FTSE4Good Bursa Malaysia ESG
rating for the Group has been elevated to a four-star level,
Despite these broader economic and industry challenges, positioning it in the top quartile for ESG performance
Kelington demonstrated remarkable resilience with net among public listed companies in the FBM EMAS, as
profit surpassing the RM100 million threshold for the first evaluated by FTSE Russell. Additionally, the Group
time, setting a new record. has maintained its position as a member of both the
FTSE4Good Bursa Malaysia Index and the FTSE4Good
This accomplishment underscores Kelington’s strong Bursa Malaysia Shariah Index.
business model and adaptability in strategy, reflecting our
commitment to value creation and growing shareholder
value. From our foundations as an engineering solutions
provider, this value-driven philosophy has guided our
strategic decisions and targeted investments, propelling
continued growth.
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Annual Report 2023
Key Market Trends : US-China Trade Tensions

Since 2018, US and China, the world’s two largest economies have been in disagreements over trade practices and tariffs.
Actual / Potential Impact How We Responded
• Increased tariffs and trade barriers have disrupted • With established operations in strategic locations
supply chains. Companies are re-evaluating their (Malaysia, China, and Singapore), we are in a favourable
supply chain strategies, seeking diversification and position amidst the US-China trade tensions.
resilience against geopolitical uncertainties. • We have further expanded our global footprint
• China is intensifying its efforts in semiconductor by incorporating two new indirect wholly-owned
production to move towards self-sufficiency and to build subsidiaries: Kelington Engineering (Germany) GmbH
a stronger position in the global semiconductor industry. in March 2024 and Kelington Engineering (HK) Limited
• Multinational corporations are adopting the “China Plus in September 2023. It forms part of our strategic global
One” strategy, by adding an alternative manufacturing expansion plan to capitalise on the strong demand for
location beyond China. semiconductor manufacturing facilities globally.
Outlook
The diversification of manufacturing locations beyond China, coupled with China’s own ramp-up in semiconductor production
present significant opportunities for us.
Germany and Hong Kong are key hubs for innovation in these sectors, and we are optimistic of capturing a larger market share of
the global semiconductor capex in these two markets.
Our diversified service portfolio and strong track record positions us well to leverage this market shift. We are actively pursuing
projects in these regions, with a tenderbook valued at RM1.9 billion.
Key Market Trends : Semiconductor Industry is Cyclical in Nature

This was exemplified during the pandemic when demand rose significantly as people went online to stay in touch with
their families and loved ones and corporations quickly rode on the digitalisation wave and embraced cloud computing.
• As pandemic eased and supply caught up with demand, the • Over the years, we broadened our
semiconductor sector entered a cyclical downtrend that began in the engineering services, from UHP to
second half of 2022, continuing into 2023 with a further contraction in Process Engineering and General
global semiconductor sales. Contracting. This has extended
• Despite a downturn in 2023, World Semiconductor Trade Statistics our reach across multiple sectors,
(WSTS) projects a robust recovery for 2024 with global semiconductor including semiconductor, industrial
sales growing 13.1%. plants and oleochemical industries.
• Semiconductor manufacturing equipment growth is expected to resume • We diversified into a new business
in 2024 with sales expected to strongly rebound in 2025 and 2026. segment, the Industrial Gas Segment,
• Global 300mm fab equipment spending for front-end facilities is involved in manufacturing and trading
expected to begin a growth streak from US$74 billion in 2023 to rise 12% of industrial gases to buffer against the
to a US$82 billion in 2024, 24% to US$102 billion in 2025 and 17% to cyclical nature of the semiconductor
US$119 billion record high in 2026. (Source: Quarterly report 300m Fab industry.
Outlook Report to 2026 by SEMI).
Outlook
Structural semiconductor growth in the areas of high-performance computing, renewable energy, electromobility, especially in
China, and microcontrollers for the automotive industry remains strong, and will fuel double-digit spending in equipment over the
three-year period from 2024 to 2026.
With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the
semiconductor market is extremely strong.
Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help
the industry continue to grow and innovate for many years to come.
17
Key Market Trends : Green Energy Transition

Global shift from fossil fuel-based systems of energy production and consumption to renewable energy sources.
• The closure of petrochemical plants has • In our Industrial Gas segment, we invested to increase our
disrupted the supply chain to produce production capacity of LCO2, with our second LCO2 plant
Liquid CO2 (“LCO2”). These closures have commenced operations in March 2024. This significantly expands
led to the limited availability of CO2 waste our production capacity, adding an additional 70,000 tonnes
gas, a key raw material in LCO2 production. annually, bringing our total capacity to 120,000 tonnes annually.
• This presents opportunity as shortage of • Our LCO2 plant purifies CO2 waste gas sourced from Petronas Gas
CO2 waste gas has led to a global shortage Processing Plant and converts it into food-grade LCO2, catering
of LCO2 for industrial use. LCO2 plays for use across diverse applications, particularly in the “F&B” sector
a vital role in a wide range of industrial for the production of carbonated drinks and the creation of dry ice
applications, including food and beverage for food freezing.
(“F&B”) production, construction welding, • We have obtained HALAL certification for our LCO2 plant from
and many others. Jabatan Kemajuan Islam Malaysia.
Outlook
With our first LCO2 plant operating at full capacity, our second LCO2 plant strategically positions us to tap the growing demand
for LCO2 in both local and overseas markets.
Currently, over 70% of our Group’s LCO2 is exported, catering to shortages in Singapore, Australia, New Zealand, Fiji, Indonesia,
and the Philippines.
Contribution from the industrial gas segment is expected to provide steady, and recurring income for our Group and allows us to
capitalise on opportunities across different market cycles and sectors.
Key Market Trends : Rising Inflationary Pressures

Pandemic-induced supply chain disruptions and surging post-lockdown demand have led to inflationary pressures globally.
• Increased raw material, • Our China fabrication facility provides Engineering, Procurement, Construction
labor, and logistics costs. and Commissioning (“EPCC”) of process systems for the electronics industry
Disruptions in shipping routes and fabrication of own-brand UHP gas and chemical delivery equipment.
due to geopolitical tensions • By manufacturing own design UHP equipment for our operations as well as
further exacerbate these offering it to other customers, this will lead to higher cost savings and better
pressures. quality control, enhancing operational efficiencies and cost competitiveness.
• Higher interest rates lead to • We prioritise strengthening our financial fundamentals by focusing on building a
higher cost of borrowings. strong order book while actively managing costs and adjusting prices.
• Continuous decline of Ringgit. • Capital spending is directed towards strategic areas that enhance our
competitive advantage and deliver high returns on investment.
• Increase competitiveness by focusing on delivering high-quality products and
services across all business segments to ensure customer satisfaction.
Outlook
Building on our strong foundation and strategic initiatives, we are confident in navigating the current economic landscape.
Our commitment to quality, operational efficiency, and competitive pricing allows us to capture new opportunities and expand our
market share domestically and internationally.
By staying agile, adaptable, and customer-centric, we are well-positioned to capitalise on emerging market trends and solidify our
position as a leading player in the segments we operate in.
18
Annual Report 2023
REVIEW OF FINANCIAL PERFORMANCE
Despite headwinds from a semiconductor market downturn, Kelington’s revenue continued to soar to a second year of
record high of RM1,614.4 million for the financial year ended 31 December 2023. This strong 26% year-on-year growth
from RM1,278.8 million a year ago reflects the significant orderbook carried over from the previous year and new orders
secured throughout the year.
The Group also reached a new significant financial milestone, surpassing the RM100 million mark in net profit for the first time.
Revenue breakdown by business segment
Equipment and Equipment and

Industrial Gases materials materials
Industrial Gases
0.1% 0.2%
Process Engineering 4.9% 7.0%
4.0% Process Engineering
7.7%
General
Contracting
27.4%
FY2022 General FY2023

Contracting
RM1,278.8 23.0% RM1,614.4
MILLION MILLION
63.6% 62.1%
Ultra High Ultra High
Purity Purity
All business segments achieved revenue growth during the substantial intercompany sales. Meanwhile, revenue from
year, demonstrating the effectiveness of our robust strategy our in-house fabrication, which forms part of the equipment
to capture market share and solidify our competitive edge. and materials sales, escalated to RM105.4 million from
RM24.5 million in FY2022. A significant portion of this, 98%,
In terms of business segments, UHP continued to be the pertains to the fabrication of equipment for our UHP projects,
major contributor to Group’s revenue with RM1,002.2 million underscoring the certification and recognition of our in-
recorded for the year. The increase of 23% y-o-y from house fabricated equipment for advanced wafer production
RM813.1 million recorded in FY2022 was largely due to facilities.
project contributions from Singapore, China and Malaysia.
Revenue contribution by UHP remain robust at 62% of our Manufacturing and trading of industrial gases grew at a
group’s total revenue. remarkable 82% to RM113.8 million from RM63.0 million a
year ago. The higher contribution from the Industrial Gases
General Contracting business segment was the second segment was mainly boosted by increased demand for
major revenue contributor to the Group, with RM370.2 million LCO2 from both local and export markets.
revenue recorded for FY2023, representing an increase of
6% y-o-y from revenue recorded in FY2022 of RM350.3 During the year, the Group further expanded its footprint in
million. This was mainly due to positive operating conditions international markets, exporting 74% of total capacity. Our
in Singapore. LCO2 plant achieved 100% capacity utilisation during the
year, maximising production output to meet strong demand.
Revenue from the Process Engineering segment more than
doubled to RM123.9 million from RM51.0 million previously Our Group recognised that there is a growing demand for
due to a significant project undertaken in Malaysia. industrial gas currently as the closure of petrochemical plant
overseas due to environmental concerns have led to global
The revenue for the equipment and materials division shortage of LCO2 and this represents a potential opportunity
experienced an increase, reaching RM3.8 million, up from for our Group to broaden our footprint into existing territories
RM0.7 million in FY2022. However, it’s important to note that and new regions.
this figure represents the adjusted revenue after excluding
19
FY2022 FY2023 Variance
Industrial Gas Segment Revenue (RM’ million) 62.4 113.8 +82%

Utilisation Rate of LCO2 Plant 80% 100%
Revenue breakdown by geographical segment
Revenue Revenue contribution for our Group in terms of

geographical segment continue to be dominated by its key
31.12.2023 31.12.2022
operating markets, ie Malaysia (43%), Singapore (38%)
(RM’mil) (RM’mil)
and China (15%). The 3 countries cumulatively contributed
approximately 96% of the total Group’s contribution.
Malaysia 699.5 571.6
China 238.2 179.0 China’s contribution to the Group’s revenue from on-going
Taiwan 30.5 33.6 projects has increased by [33%] y-o-y, with a close following
Singapore 610.5 477.6 by both Singapore [(+28%)] from General Contracting
projects currently in progress and Malaysia [(+22%].
Indonesia 7.1 2.1
Philippines 8.9 7.2 The growth in Malaysia’s revenue resulted from enhanced
Australia 7.4 1.0 contributions of one UHP project and one Process
Engineering project, both of which were awarded in
Fiji 5.5 2.9
the second half of FY2022. Additionally, the improved
New Zealand 5.6 2.9 contribution from General Contracting jobs and favourable
Others 1.2 0.9 impact from the Industrial Gas segment in the Malaysia
Total 1,614.4 1,278.8 market has further fuelled the increase in revenue
contribution from Malaysia.
The Industrial Gas segment has experienced a notable increase in export revenue from LCO2. As a result, revenue
contribution from Indonesia, Philippines, Australia, Fiji and New Zealand grew from the previous year.
It also strengthens our Group’s profile of being well diversified in terms of geographical position and enables our Group
to mitigate region specific risks.
FY2022 FY2023
(RM’ mil) (RM’ mil) Variance
Revenue 1,278.8 1,614.4 26%

Cost of sales 1,130.7 1,384.9 22%
Gross profit 148.1 229.5 55%
Gross profit margin (%) 11.6% 14.2%
Other income 4.2 9.6 128.6%
Administrative expenses (56.4) (72.9) 29%
Selling and distribution expenses (2.6) (3.8) 46%
Other expenses (13.5) (17.5) 29.6%
Finance costs (5.4) (11.0) 103.7%
Profit before tax 74.4 133.9 80%
Profit before tax margin (%) 5.8% 8.3%
Taxation (15.9) (27.9) 76%
Effective tax rate (%) 21.4% 20.8%
Profit after tax 58.5 106.0 81%
Profit after tax margin (%) 4.6% 6.6%
Net profit attributable to shareholders 55.8 104.1 87%
Net profit margin (%) 4.4% 6.4%
20
Annual Report 2023
Other income increased Finance costs have increased by 103.7% from RM5.4
by 128.6% from RM4.2 million in FY2022 to RM11.0 million in FY2023 due to the
million in FY2022 to
RM9.6 million in FY2023
RM9.6 upswing in term loans and revolving credit, primarily a
result of capital expenditure and working capital for the
mainly due higher interest MILLION industrial gases division.
income derived for the
OTHER INCOME
year of RM2.5 million Improvements in gross profit, profit before tax and profit
INCREASED BY
(FY2022: RM0.5 million). after tax margins can be attributed to a favourable project
128.6%
This was due to the profile mix as revenue from segments with higher profit
change of major current margin increased.
accounts to interest bearing bank accounts, and stronger
cash and bank balances as a result of the change and also Our Group recorded Profit After Tax of RM106.0 million
overall improvement in our Group’s financial performance. in FY2023, almost doubled (approximately 1.8x) from the
PAT of RM58.5 million generated in FY2022. This record
The increase of administrative expenses for FY2023 of breaking PAT is in tandem with the increase in revenue for
RM72.9 million from RM56.4 million in FY2022 mainly the year and favourable project mix with higher proportion
due to higher bonus awarded to our employees. This of higher margin projects.
underscores our Group’s commitment to sharing our
financial success, rewarding and retaining our employees A lower effective tax rate for the Group also contributed to
in line with the Group’s stronger financial performance. the higher PAT achieved for the year. The effective tax rate
for the Group for the current financial year is lower than
the statutory tax rate due to the lower tax rate in Singapore
and some tax exemptions received by our Group from
China due to expenditure on research and developments.
CASH FLOW AND CAPITAL RESOURCES
FY2022 FY2023
Net Cash from/(used in) (RM’ mil) (RM’ mil)
Operating Activities 29.3 177.0

Investing Activities (39.0) (68.1)
Financing Activities 157.0 (106.8)
Net increase in Cash and Cash Equivalents 147.3 2.1
Cash and Cash Equivalents at end of the financial period 229.5 237.3
The healthy cash flow generated from operations allowed our Group to deliver steady cash dividends while keeping
up with capital expenditure requirements. Our cash and cash equivalents as of 31 December 2023 stood at RM237.3
million as a result of the following:
(i) Net cash generated from operating activities of RM177.0 million in FY2023 compared with RM29.3 million in
FY2022;
(ii) Total cash spent in investing activities of RM68.1 million in FY2023 compared with RM39.0 million spent in the
previous financial year. The 75% increase was mainly due to capital expenditure for industrial gas division
representing investment for continued expansion of production facilities and increases in production capacity
mainly for the new LCO2 plant; and
(iii) Financing activities registered a net outflow of RM106.8 million in the financial year mainly due to repayment of
project financing.
21
BALANCE SHEET
FY2022 FY2023 Variance

(RM’ mil) (RM’ mil) (%)
Total Assets 1,055.6 1,071.3 1.5

Fixed deposits, cash and bank balances 260.0 269.3 3.6
Total Liabilities 812.5 732.9 (9.8)
Total Borrowing 245.0 188.2 (23.1)
Total Equity 243.1 338.4 39.2
Gearing Ratio (times) 1.01 0.56 (44.6)
In FY2023, our Group maintained a strong balance sheet The increase in shareholders’ value has allowed our Group
with total assets standing at RM1.07 billion, increasing to continue to reward our shareholders by distributing
marginally from RM1.06 billion in FY2022. This was dividends, which we have been doing since our listing.
mainly due to the capital expenditure for industrial gases
division, and also a decrease in contract assets and other Resulting from the stellar performance during the year, our
receivables. Group’s net asset value per share increased from RM0.38 as
of 31 December 2022 to RM0.52 as of 31 December 2023.
Meanwhile, our Group’s total liabilities for FY2023 has
reduced by approximately 10% y-o-y, with a decrease in Our Board has declared
borrowings of approximately RM56.8 million. The decrease
was mainly due to settlement of project financing loan as
a total dividend of 4.0
sen per share in FY2023,
4.0 SEN
specific projects reached their final stage. The upswing representing an increase TOTAL DIVIDEND PER
in term loans and revolving credit is primarily a result of of 60% y-o-y from the SHARE IN FY2023,
capital expenditure and working capital for the Industrial dividend per share paid REPRESENTING AN
Gases division. in FY2022. The total INCREASE OF
dividend was made up 60% Y-O-Y
Capital structure of our Group is sound with overall of the first interim tax-
reduced borrowings for the year, leading to a lower exempt dividend of 1.5 sen per ordinary share, amounting
gearing ratio, dropping from 1.01 times in the previous to RM9.7 million paid on 2 October 2023. This was followed
year to 0.56 times as at 31 December 2023. Furthermore, by a second interim tax-exempt dividend of 2.5 sen per
our cash and bank balances of RM269.3 million exceeds ordinary share, amounting to RM16.6 million paid on 5
total borrowings of RM188.2 million, resulting in a net cash April 2024. Total dividend payout for the year amounted to
position of RM81.1 million for our Group. approximately RM26.3 million and represents a dividend
payout ratio of 25%, consistent with our dividend policy.
Consistent profits through the years have enabled us to
grow retained earnings and thus, our equity attributable
to ordinary shareholders to RM332.6 million in FY2023.
2024 OUTLOOK AND PROSPECTS
In 2024, the International Monetary Fund projects a rebound in global trade, with growth anticipated at 3.3%, from 0.4%
in the previous year. In addition, capital expenditure spending for semiconductor industry is also expected to rise,
driven by capacity expansion, new fab projects, and high demand for advanced technologies and solutions across the
front-end and back-end segments.
Bank Negara Malaysia is projecting GDP to grow between 4% and 5% in 2024, supported by more resilient domestic
spending and improvement in external demand fuelled by the rebound in global trade and the tech upcycle.
22
Annual Report 2023
New Orders Secured Outstanding Orderbook

(RM’ mil) as at 31 December 2023
Process Engineering
RM80 mil
1,848 6%
General
Contracting
RM257 mil
1,190 20%
1,100
FY2023
490
386 RM1.30
BILLION
2019 2020 2021 2022 2023
RM967 mil
74%
Ultra High Purity
For the past 3 years, our Group has had a healthy RM434 million (33%) and China (RM404 million or 31%).
replenishment of orderbook and have been able to secure We also have outstanding orders in Taiwan worth RM10
new orders exceeding RM1 billion annually. The streak million.
continued this year with RM1.1 billion new contracts
secured, resulting in a total outstanding orderbook of The outlook for our Industrial Gas segment is promising,
RM1.3 billion as at 31 December 2023 which includes especially with our second LCO2 plant which has begun
projects carried forward from the previous years. operations in March 2024. This expansion will elevate our
total annual production capacity to 120,000 tonnes. Given
We have started strong this year with secured orders the global LCO2 shortage, triggered by the shutdown of
totalling RM200 million in January and February 2024, petrochemical plants amid environmental considerations,
which includes a major contract amounting to RM143 we are optimistic that our increased capacity will position
million in China. The contract is awarded by China’s largest us well to cater to the escalating demand both locally and
semiconductor foundry, to perform design, procurement, internationally.
construction, and commissioning of gas hookup systems
in Shanghai, China. Moving forward, our Group expects growth momentum to
continue in 2024, buoyed by the strong demand in the
74% of the total outstanding orderbook is attributable to semiconductor industry and our strategic initiatives to
our UHP division, amounting to RM967 million. Contracts enhance competitiveness and strengthen our position in
secured under UHP division carries higher profit margins, the market.
and having a big proportion of it as part of our outstanding
orderbook is beneficial for our Group. It also represents a Despite ongoing economic challenges, we are confident
solid testament to our brand name and leadership position in our ability to capitalise on the solid relationships we’ve
in the UHP industry as we have been able to consistently built with customers across various markets and offerings.
secure contracts in the UHP industry. We are poised to benefit from the anticipated market
upswing in 2024 and beyond, leveraging our established
The General Contracting and Process Engineering reputation to secure new contracts and opportunities.
divisions have contracts worth RM257 million and RM80
million respectively to contribute the remaining 26% to the As we eye expansion into new markets such as Germany
orderbook. and Hong Kong, our key markets - Malaysia, Singapore
and China - remain crucial to the growth of our Group. We
Geographically, our outstanding orderbook is well spread will continue to focus on strategies to improve production
between Malaysia, Singapore and China, with each capacity and utilisation, while strengthening our operational
representing circa 30% of the total outstanding orderbook. efficiencies to maintain competitiveness. This is expected
Malaysia is leading with 35% of orders with contracts to drive higher revenue and improved profitability, and
amounting to RM455 million, followed by Singapore with allow us to continue charting an accelerated growth path.
23
E NSURING SUSTA I NABLE VALUE CREATI O N
What Sustainability Means to Us

Sustainability holds paramount importance at Kelington Group (“Kelington” or “the Group”), where Environmental,
Social, and Governance (ESG) considerations guide our every action. We recognise our impact on the environment
and natural resources as we pursue our organisational goals. Our commitment extends to upholding the quality of our
products and services for our valued customers, while delivering sustainable value to our stakeholders.
At Kelington, we are committed to establishing a robust framework of policies, dedicated committees, and management
systems. These structures, along with regular process reviews, are designed to uphold the highest levels of integrity
and transparency at our management practices. We prioritise regular employee training and engagement to ensure
that Kelington’s sustainability approach is not only well understood but also effectively implemented across the Group.
In essence, sustainability at Kelington means conscientiously balancing our business objectives with our responsibility
towards environmental stewardship, social welfare, and ethical governance. Through our unwavering commitment to
sustainable practices, we aim to make a positive impact on the world around us while fulfilling our obligations to all our
stakeholders.
REPORTING PERIOD AND SCOPE REPORTING FRAMEWORK
This Sustainability Statement covers the non-financial The disclosure of our sustainability performance is guided
performance of the Group’s operating units during the by the following Malaysia and global reporting frameworks
period from 1 January 2023 to 31 December 2023: and benchmarks:-
Principal Guidelines
Engineering Business
• Bursa Malaysia Sustainability Reporting Guidelines
3rd Edition
• Task Force on Climate-related Financial Disclosures
Process General (“TCFD”) Recommendations
UHP
Engineering Contracting
Supplementary Guidelines
• FTSE4Good Bursa Malaysia Index Rating Guide

• Global Reporting Initiative (“GRI”) Standards
Commitment
• Sustainability Development Goals (“SDGs”)

• United Nations Global Compact (“UNGC”) Principles
ACCESSIBILITY & FEEDBACK
This report, which is available in HTML & PDF format is

available at our corporate website at https://kelington-
Industrial Gases group.com/sustainability-2/
We welcome and value feedback on our sustainability

Manufacturing of liquid carbon dioxide and dry ice,
disclosures and consider it as an opportunity to identify
trading of specialty gases and on-site gas supply. areas for improvement for future reports. Please direct
any questions or comments to the Sustainability Working
Group at [email protected]
24
Annual Report 2023
SUSTAINABILITY FRAMEWORK
Care Care Care Care

for Business for Environment for People for Society
Our Commitment
Strive to contribute and become part of the solution as we build a sustainable society for future generations.
Value We Created
Value Engineering through Committing to reduce

innovation and collaboration carbon emissions
and protecting the
Building a thriving workplace Improve access to education
environment through
for employees for underprivileged
Be an effective, sustainable practices and
accountable and transparent implementation of climate
organisation change strategy
SI SI SI SI SI SI SI SI SI SI SI SI SI SI
9 11 12 13 14 1 2 3 4 5 6 7 8 10
Supporting Sustainable Development Goals
Alignment with United Nations Global Compact
Principles 1, 9, 10 Principles 7, 8, 9 Principles 2, 4, 5, 6 Principle 1
We Manage Sustainability Issues
SI 1: Preventing Climate Change SI 8: Respect Human Rights

SI 2: Pollution and Waste Management SI 9: Sustainable Supply Chain
SI 3: Resources Management SI 10: Community Investment
SI 4: Support Biodiversity SI 11: Governance & Ethics
SI 5: Occupational Safety & Health SI 12: Economic Growth & Profitability
SI 6: Talent Management & Development SI 13: Quality Products & Services
SI 7: Diverse and Inclusive Workplace SI 14: Technology & Operational Innovation
RECOGNITIONS
FTSE4Good
Inclusion in FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Shariah Index
since December 2021.
25
OUR VISION FOR ENGINEERING A SUSTAINABLE SOCIETY
Various issues exist in the society surrounding Kelington, including environmental challenges such as climate change,
energy, and resources depletion; as well as social matters including unequal opportunities and digital divide. Keeping that in
mind, Kelington strives to contribute and become part of the solution as we build a sustainable society for future generations.
Our Approach to Sustainability
We Engineer a sustainable society and promote well-being for all people.
Engagement Implementation Innovation Value Creation
Implement eco- Realisation of

efficiency and business value
Commitment sustainability Embedding from sustainable
management Sustainability practices.
Management system.
Commitment to Sustainability
Sustainability. considered as
business as
Footprint Systems
usual.
Elements of Sustainability Management
Policies & Organisational Processes Continuous Communication Preparatory

Rules Structure Improvements tasks
• Integration • Leadership &
• Policies • Board of in business • Goals and Commitment • Understanding
& Rules director processes measures for • Stakeholders the organisation
• Code of responsibilities • System progress tracking dialogue and its context
Conduct • Senior to ensure • Monitoring • Sustainability • Understanding
Management compliance indicators and Reporting the needs of
responsibilities performance • Internal interested
• Sustainability evaluation Communication parties
Working Group • Management of • Stakeholder • Determining the
• Other working ESG risks engagement relevant aspects
committees • Grievance • Determining
mechanisms the scope of
• Training management
systems
26
Annual Report 2023
SUSTAINABILITY GOVERNANCE STRUCTURE

Oversight
Board of Directors
Risk Management
Committee
Group CEO
Strategic Management
Executive
Management
Committee Chief Operating Officer
Business Functions Sustainability Working Group

Execution
Working Committees
Corporate Health & Safety Environmental Human & Social Capital
Corporate Compliance & Integrity Sustainable Supply Chain
Oversight Strategic Management Execution
Sustainability strategies and The Group CEO is supported by the The Sustainability Working Group
performance are governed by Executive Management Committee (“SWG”) identifiy key improvement
the Group’s Board of Directors (“EMC”) and the Chief Operating areas of ESG, oversees the execution
(“BOD”) and supported by the Risk Officer (“COO”). of improvements, and advises
Management Committee (“RMC”) the Board on the matters related
to ensure we achieve profitability The EMC oversee sustainability risk to enabling Kelington to operate
and sustainable returns whilst and opportunities and reviews the sustainably for the benefit of current
ensuring the Group’s ESG targets Group’s sustainability roadmap and and future generations as well as
are reached in the long term. The ensure best practices are upheld effectively managing sustainability
Board has entrusted the RMC with across the Group. risks. The SWG is also tasked
the responsibility of risk management with developing the Sustainability
oversight. An Enterprise Risk The COO drive integration of Statement and reporting directly to
Management Framework has been sustainability strategy into the the COO on a quarterly basis.
adopted to identify, evaluate and Group’s business plans and ensure
manage principal risks for the implementation of appropriate On the other hand, all head business
Company. policies, procedures and controls. functions shall support strategy
The COO is responsible for approving implementation, ensure processes
major sustainability initiatives. and controls are in place within its
department and report management
targets on a timely basis.
27
CORPORATE COMPLIANCE FRAMEWORK MATERIALITY ASSESSMENT
The Corporate Compliance and Integrity Department The materiality assessment helps the Group in identifying,
(CCID) at Kelington Group leads all compliance-related refining and focusing on the areas of importance to our
initiatives, working under the guidance of the Group’s business and stakeholders and subsequently help to
Chief Operating Officer (COO). Collaborating closely with create values over the short, medium and long term for
the SWG and various Working Committees across the Kelington.
organisation, the CCID ensures that compliance efforts are
comprehensive and aligned with our corporate objectives. Kelington conducts a comprehensive materiality
assessment at least once every three years to identify,
The overarching goals of these initiatives, implemented understand and prioritise the environmental, social and
throughout the entire Group, are to bolster our management governance issues that matter most to our business and
of Environmental, Social, and Governance (ESG) issues. stakeholders. We also carry out an annual evaluation on
This includes raising awareness around compliance the material matters to ensure the issues identified reflect
matters, with a particular focus on corporate governance evolving stakeholder priorities and our impact creation
topics such as bribery and corruption, harassment, and potential. The first comprehensive materiality assessment
discrimination. Additionally, we continuously enhance was conducted in 2019.
and fortify our compliance programs to meet evolving
regulatory requirements and industry standards. In FY2023, Kelington reviewed its material matters, taking
into consideration the following factors in view of the
Furthermore, the CCID remains vigilant in responding current operating environment:
to any specific compliance-related issues as they arise,
swiftly addressing them with appropriate measures. • Operational Impact: Consider potential operational
Regular assessments of the Group’s integrity and impact such as disruptions to production, distribution,
compliance performance are conducted, with reports or supply chain logistics, as well as operational
submitted to the Risk Management Committee (RMC) at inefficiencies or constraints.
least once a year.
• Regulatory and legal compliance: Considering the
At Kelington Group, Corporate Compliance Framework potential consequences of non-compliance, including
serves as a cornerstone of our commitment to conducting fines, penalties, legal proceedings, and reputational
business ethically, responsibly, and in accordance with damage.
the highest standards of integrity. By fostering a culture
of compliance and accountability, we aim to uphold the • Reputation: Factors such as negative publicity,
trust and confidence of our stakeholders while driving stakeholder concerns, ethical lapses, and corporate
sustainable growth and success. scandals are evaluated.
• Stakeholder expectations: We assess the

significance of issues or events based on stakeholder
feedback, engagement, and prioritisation. Stakeholder
inquiries, complaints, feedback, and preferences are
considered.
• ESG considerations: Factors such as climate

change risks, labor practices, diversity and inclusion,
and board effectiveness are considered.
28
Annual Report 2023
THE MARKET AND TRENDS THAT SHAPE US
With the growing awareness of climate change and the increasing demand for
sustainable practices, there is a rising interest in renewable energy solutions.
While renewable energy has become more cost-competitive over time, it
still encounters affordability challenges compared to traditional fossil fuels
GROWING DEMAND in certain markets. Kelington aims to address these challenges by assisting
FOR RENEWABLE clients in implementing energy-saving strategies and solutions. By offering
ENERGY comprehensive energy efficiency services during design phase of project,
Kelington can enhance the attractiveness of its engineer solutions to clients,
providing them with cost-effective and sustainable options for optimising their
manufacturing process. This approach not only reduces energy consumption
and operational costs but also enhances the overall efficiency and environmental
performance of their facilities.
Industrial clients operate in a globalised marketplace, often seeking to

establish manufacturing facilities in diverse locations to access new markets GLOBALISATION
or optimise supply chains. Kelington capitalise on this trend by expanding our AND MARKET
geographical footprint and adapting our services to meet the regulatory and EXPANSION
cultural requirements of different regions.
The engineering industry faces challenges related to workforce shortages and

WORKFORCE AND skills gaps. To address this issue, we need to invest in workforce training and
SKILLS SHORTAGES development programs, adopt innovative technologies that help bridge the
skills gap, and implement human capital strategy to attract and retain skilled
workers.
MNC customers may evaluate the resilience and sustainability of their supply
chains, including the performance of suppliers. Kelington as their approved
SUPPLY CHAIN
vendor need to demonstrate robust supply chain management practices, risk
MANAGEMENT AND
mitigation strategies, and business continuity plans to maintain the confidence
RISK MITIGATION
of MNC customers. Failure to effectively manage supply chain risks can
impact the company’s reputation and customer relationships.
29
MATERIALITY METHODOLOGY
To ascertain which sustainability matters are material to our business from both company and stakeholder perspectives,
we have carried out a materiality assessment in accordance with the methodology described in the Sustainability
Reporting Guide (3rd Edition) published by Bursa Malaysia. This process allows us to align both internal and external
perspectives, with the aim of identifying areas of potential optimisation and to further developing sustainability-related
management approaches and reporting.
The annual process for determining material sustainability topics involves three steps: identification, prioritisation and
validation. Kelington’s SWG gather crucial inputs, conduct stakeholder analysis, and prioritises sustainability matters
on the matrix along these two axes: importance to stakeholders and importance to Kelington Group. The respective
matrices are reviewed and validated by the management of each division before being consolidated into the Group’s
matrix and reviewed by the EMC and COO.
01 02 03 04
IDENTIFY PRIORITISE MATERIAL VALIDATE & REVIEW

SUSTAINABILITY SUSTAINABILITY COMMUNICATE
ISSUES ISSUES
Review of External Stakeholder Validation of Material Review of Material

Sources:- Prioritisation Issues Issues
• SDGs Assess the level of Validate material Review the impact

• UNGC Principles influence & interest matters against of material matters,
• TCFD they have in Kelington. stakeholders’ taking into account
• Recommendations expectations and of emerging trends,
FTSE4Good Bursa Stakeholder SDG’s to identify most changing customer
Malaysia Index Engagement material indicators. expectation.
Rating Guide
• Relevant Industries Engage with internal &
publications external stakeholders
• Analyst report to produce & rank a
list of 14 sustainability
Review of Internal issues.
Sources:-
• Review of
management data
• Feedback received
from stakeholders
Output
√ Sustainability
Governance Structure
√ Influence on
√ Preliminary list of √ Sustainability
stakeholder √ Materiality Matrix
Sustainability matters Management Process
assessment
√ Sustainability
Reporting
30
Annual Report 2023
MATERIALITY MATRIX
In FY2023, we continue to prioritising the 14 material issues that have been identified as having the most significant
impacts for reporting.
We Manage Sustainability Issues
SI 1: Preventing Climate Change SI 8: Respect Human Rights

SI 2: Pollution and Waste Management SI 9: Sustainable Supply Chain
SI 3: Resources Management SI 10: Community Investment
SI 4: Support Biodiversity SI 11: Governance & Ethics
SI 5: Occupational Safety & Health SI 12: Economic Growth & Profitability
SI 6: Talent Management & Development SI 13: Quality Products & Services
SI 7: Diverse and Inclusive Workplace SI 14: Technology & Operational Innovation
Key Sustainability Issues
MATERIALITY MATRIX
SI SI SI
11 12 5
100%
SI
SI 14
90% 3
SI SI
SI 2 SI 13 SI
1 6 8
80%
Importance for External Stakeholders
SI
9
70%
SI
7
SI
60% SI 10
4
50%
40%
30%
20%
10%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Significant of ESG impact to Kelington
31
SUPPORTING SUSTAINABLE DEVELOPMENT GOALS
FY2023 Year on Year

Progress
SDGs Our Targets Indicator 2022 2023
Zero work-related
100%
0 0
fatalities Workplace Workplace
fatalities fatalities
Year-on-year improvement TRIFR TRIFR

Protect labour rights of total recordable injury 100%
and promote safe frequency rate (TRIFR) 0.75 0.72
and secure working
environments for all Achieve Zero incident
workers. of unfair employment
practices & Zero incident 100% 0 0
incident incident
of violation of labour laws.
Participate in Participate in
Project Sambung Project Sambung
Implement programme Sekolah and Sekolah and
to improve access support support
to education for 25%
Improve access
to education
underprivileged. 5 5
underprivileged underprivileged
and ensure life- students students
long learning for
disadvantaged youth.
30% female
27% 28.6%
female female
representation in total representation in representation in
workforce 90%
Ensure women’s total workforce total workforce
(Executive level & above) [Executive level & [Executive level &
full and effective
participation and above] above]
equal opportunities
for leadership.
Short Term Goal by

FY2024: Reduce our own
CO2 emissions intensity
763 492
100% CO2e tonnes / CO2e tonnes /
by at least 20% (Baseline
RM million RMmillion
Take urgent action Data FY2020:2,345 CO2e
EBITDA EBITDA
to combat climate tonnes / RM’million EBITDA)
change and its
impacts.
1 1
session awareness session awareness
Promote a culture training training
of integrity through
awareness campaigns 100%
Develop effective, and regular 0 0
accountable communications. Case noncompliance Case noncompliance
and transparent of laws and of laws and
institutions regulations against regulations against
acts of corruption. acts of corruption.
32
Annual Report 2023
OUR STRATEGIC GOALS, SUSTAINABILITY TARGETS AND PERFORMANCE
Kelington seeks to improve our sustainability performance, transparency and accountability as we embed sustainability
measures in our business operations to manage ESG factors.
The following sustainability targets are structured around two pillars: sustainable values creation and managing impacts:
Key
Sustainability
Issues Target 2024 Base Year Data Progress FY2023
Sustainable Values Creation

SI To continue Profit After Tax KGB saw an PAT RM’ million
12 generating and FY2019 increase of 106.0
Economic distributing RM23.9 million 79.9% in
Growth & economic value +343.5% Profit After Tax 58.5
Profitability to stakeholders in FY2023. 23.9

17.6
29.7
by sustaining a
resilient financial 2019 2020 2021 2022 2023
performance
Ö Please refer to page 4 for more details.
SI To achieve average FY2019 Training hours Average training hour per employee
6 12 training hours 10.36 hours per employee 15.05 15.46
14.25
Talent per employee per per employee increased 11.52
10.36
Development year +49.2% 2.7%
in FY2023.
2019 2020 2021 2022 2023
SI To achieve FY2019 Maintain Average Customer Satisfaction Rate (%)

13 average 88% average
Quality Customer Customer 93 91 91 88
88
Products & Satisfaction Satisfaction
Services Rate of 90% Rate of
88%
in FY2023. 2019 2020 2021 2022 2023
33
Key
Sustainability
Issues Target 2024 Base Year Data Progress FY2023
Managing Impacts
SI To maintain zero Zero Maintained No. of Work Related fatalities Case
5 work related work related zero fatalities
Occupational fatalities fatalities as a result of
Safety & Health work-related
injuries
0 0 0 0 0
2019 2020 2021 2022 2023
SI Industrial Gases 1,180 MWh 32% reduction in electricity intensity-Industrial Gases

3 division: / RM’mil Division in FY2023.
To reduce electricity
Resources
intensity by 5%. EBITDA
Management -61.7%
Industrial Gas Division 2020 2021 2022 2023
Electricity Consumption 5,853 9,377 12,331 14,321
In view that our (MWh)
Industrial Gases EBITDA (RM’mil) 4.96 10.35 18.58 31.70
manufacturing
Electricity Intensity 1,180 906 664 452
business consumes Ratio -32%
substantial amount (MWh / RM’mil)
of electricity,
improving the Ö Please refer to page 57 for more details.
power efficiency of
our manufacturing
facilities would be
instrumental for KGB
to manage electricity
intensity.
SI Industrial Gases 2,732 m3 Reduced Water Intensity by 23.5% in Y2023.
3 division: / RM’mil
To reduce water
Resources
intensity by 5%. EBITDA Industrial Gas Division 2020 2021 2022 2023
Management Water Consumption (m3) 13,552 24,791 28,012 36,539
-57.8%
EBITDA (RM’mil) 4.96 10.35 18.58 31.70
Water Intensity 2,732 2,395 1,508 1,153
(m3 / RM’mil) -23.5%
SI Engineering 14.4 tonnes 67.6% decreased in Non-Recycled Waste Intensity.

2 division: / RM’mil
To reduce non
Pollution
recycled waste EBITDA Engineering Division 2020 2021 2022 2023
and Waste Construction Waste 330 200 717 422
intensity by 5% -76.4% (tonnes)
Management
EBITDA (RM’mil) 22.9 43.1 68.2 123
Non-Recycled Waste 14.4 4.6 10.5 3.4
Intensity -67.6%
(tonnes / RM’mil)
34
Annual Report 2023
HOW WE MANAGE SUSTAINABILITY ISSUES
Care Care Care Care

for Business for Environment for People for Society
SI 09: Sustainable SI 1: Preventing Climate SI 5: Occupational SI 10: Community

Supply Chain Change Safety & Health Investment
SI 11: Governance & SI 2: Pollution SI 6: Talent
Ethics and Waste Management &
SI 12: Economic Growth Management Development
& Profitability SI 3: Resources SI 7: Diverse and
SI 13: Quality Products & Management Inclusive
Services SI 4: Support Workplace
SI 14: Technology & Biodiversity SI 8: Respect Human
Operational Rights
Innovation
Policies and Standards available online
• Responsible Supply Chain • Sustainable Development • Safety & Health Policy • Community Investment
Policy & Climate Change Position • Gender Diversity Policy Policy
• Code of Ethics & Conduct Statement • Human Rights Policy
• Anti-Bribery & Corruption • Environmental Policy
Policy
• Conflict of Interest Policy
• Whistleblowing Policy
• Risk Management Policy
• Corporate Disclosure
Policy
• Shareholder’s Right
• Quality Policy
Principal risks that have key links to the sustainability issues
• Supply disruption • Climate related risk and • Industrial Accident / • Low school achievement
• Ethical misconduct financial impact Workplace Injuries affect the quality of the
and poor governance • Natural resources scarcity • Dependence on the local workforce.
avialability of technical
practices • Environmental Liability risk • High level of crime
professional
• Legal and Reputation Risk • Physical and transition • Changes in Customer increased costs for
• Operational Risk risks perception and / or security measures.
• External Risk • Compliance risk preferences • A recession and
• Cybersecurity risk • Discrimination in the increasing unemployment
workplace can harm rates can impact the
employee health and an
organisation’s productivity overall economic
• Poor labor relations and environment, affecting
inadequate human capital Company’s financial
management. performance and stability.
Non-Financial KPIs
• Progress of Supplier • Reduce our own CO2 • Zero work related fatalities • Implement programme
Development emission intensity by at • 30% female representation to improve access
• Percentage of local least 20% by FY2024 in total workforce to education for
sourcing • To reduce electricity • Average 12 Training underprivileged
• Customer Satisfaction intensity by 5% Hours per employee per • Total number of persons
Rate • To reduce water intensity year received benefit
• ESG ratings by 5% • Zero incidents of through our supporting
• Zero Incidents of • To reduce non recycled violations of labour laws schools and non-profit
Corruption and Bribery waste intensity by 5% / unfair employment organisation.
• Number of complaints practices
concerning breaches of
customer privacy and
losses of customer data.
35
E USTAINABILITY
S NSURING SUSTASTATEM
I NABLE ENT
VALUE CREATI O N
Protecting
the Environment
The Climate is changing.
Why aren’t we?
6 Actions
to fight climate change
1. Value Engineering for Sustainability.

2. Engineering Solutions to reduce
environmental impact.
3. Measure & Analyse GHG Emissions.
4. Be Energy Efficient.
5. Reduce Waste.
6. Raise Awareness of the urgent need
to address climate change.
Ong Weng Leong

Executive Director
We Care for Environment
Highlights Page
SI Preventing Climate • Our Role in Low Carbon Future 37
1 Change • Kelington’s Climate Change Strategy 42
• Climate related Disclosures
- Governance 40
- Strategy 42
- Risk Management 43
- Metrics & Targets 49
SI Pollution & Waste • Prevent Pollution (Water Quality / Air Quality / Noise) 52
2 Management • Our approach to sustainable waste management / reduction 53
• Construction Waste 55
• Scheduled Waste 56
• Electronic Waste 57
SI Resources • Energy Management 58

3 Management • Water Management 60
SI Support • Key Initiatives and Strategies 62

4 Biodiversity
36
Annual Report 2023
SI
1 Preventing Climate Change
Tackling Climate Change
At Kelington, we want to be part of the solution to help address the climate change. Our aim is to ensure our business, and
those in our supply chain, continue to deliver economic and social benefits as we assist in the transition to a low-carbon future.
Our role in a low-carbon future
“We Engineering Solutions to reduce environmental impact”
Climate change is of strategic importance for the world and for Kelington. It presents a long-term challenge if government,
society and business do not take action. Long-term perspective is required to address both the risks and uncertainties,
and opportunities.
We believe that Kelington can and should be part of the solution, as we engineer solutions to ensure safe handling of
the delivery and distribution of specialty gases and chemicals all the way from source to equipment to waste disposal.
Meanwhile, we enable new technologies to solve environmental challenges in the industry.
How does exhaust affect the environment? How can Kelington be a part of the solution?
Exhaust streams in a fab frequently contain Kelington delivers complete solutions for Wet Scrubber System;
very corrosive and / or toxic gases that must Greenhouse Gas Reduction System; VOCs Removal System;
be removed by chemical scrubbing prior to Odor Control System; and acid / general / exhaust / solvent
release to atmosphere. The process exhaust is ductwork system which capable to remove harmful gases from the
fed to a centralised exhaust treatment facility in semiconductor fabrication process.
most semiconductor fabs. These facilities are
generally described as exhaust “scrubbers”. Harmful gases include hydrogen fluoride, hydrogen chloride,
chlorine, fluorine, silicon tetrafluoride, carbon dioxide, methane,
nitrous oxide, fluorinated gases (HFCs, PFCs, SF6, NF3), nitric and
sulphuric acids, as well as with other acidic and caustic compounds.
Kelington supply and install wet scrubbers system which is a type

of air pollution control device that is used to remove harmful gases
and particles from industrial exhaust streams and we can customise
to meet specific emission control requirements.
Exhaust systems are generally associated with emissions of

pollutants and GHG that contribute to air pollution and climate
change. However, we engineer solutions to design exhaust systems
with emission reduction technology and used to reduce the
environmental impact.
37
How does industrial water / wastewater How can Kelington be a part of the solution?
affect the environment?
The manufacturing of semiconductors generates Wastewater Treatment System is used to convert spent streams into
wastewater that contains heavy metals and an effluent that can either be reused or safely discharged to the
toxic solvents. environment or municipal treatment facility.
The untreated wastewater can contaminate the We provide waste water treatment system used to remove
ground water. This is one of the primary reasons contaminants from prior to returning the treated water back to
for water pollution. the water cycle / sewage. Kelington’s well-designed wastewater
treatment system helps the facility avoid harming the environment,
human health, and a facility’s equipment, process or products
(especially if the wastewater is being reused).
Valuable materials used in manufacturing How can Kelington be a part of the solution?
process can be expensive to dispose of as
waste.
The photolithography process is widely Kelington design and build Stripper Reclaim System (SRS) and
used in the semiconductor industry to create allowed the manufacturer to recover and recycle the valuable
microcircuits and microelectronic devices, materials and thus reducing waste, saving on material costs, and
such as computer processors, memory chips, minimise the environmental impact. The SRS involves the use of
and integrated circuits. It is also used in the filters and chemical treatment processes to recover and purify the
production of flat panel displays, including materials for reuse.
LCD, OLED, and plasma displays.
The photolithography process is a critical

manufacturing process for many high-tech
industries to create the circuitry and components
on the wafer.
After the circuitry is completed, a chemical

solution is used to strip away the unwanted
layers, leaving only the desired components
on the wafer. The chemical solution used in this
process can contain valuable metals or other
materials that can be expensive to dispose of
as waste.
Emissions How can Kelington be a part of the solution?
Emissions from the combustion of fossil fuels, Reduce CO2 emission through Separation and Utilisation.
cement production and human activities
increase, they build up in the atmosphere Kelington captures waste gas emitted by petrochemical complex
and warm the climate, leading to many other for re-use as key raw material to produce Liquid Carbon Dioxide
changes around the world - in the atmosphere, via CO2 separation technologies. Liquid carbon dioxide produced
on land, and in the oceans. is used for freezing and chilling of food products, carbonation of
beverages etc.
38
Annual Report 2023
Climate related Disclosures
In FY2023, Kelington Group continues its commitment to transparency and sustainability by adopting the TCFD
recommendations to disclose both our direct and indirect climate change-related impacts. While we have made significant
progress in integrating the TCFD recommendations into our existing management processes, we acknowledge the need for
further enhancement, particularly in refining our strategy and disclosure on metrics and targets.
Our governance structure and process to

manage climate related risks and opportunities
Governance
How are we incorporating climate-related

risks and opportunities into Kelington’s
overall business strategy
The processes used to identify, assess, and Strategy

manage climate-related risks
Risk Management
Disclosure of metrics and targets related to climate
related risks and opportunities
Metrics & Targets
Climate related Disclosures
TCFD Key Pillars Kelington’s Key Approaches Refer to page
Governance Kelington’s board maintains oversight of the group’s climate-related risks 40

and opportunities. They receive biannual updates on the sustainability
strategy and initiatives and approve the Sustainability Statement, which
comprehensively discloses the company’s environmental and climate
change agenda.
Strategy The Executive Management Committee acknowledging the significant 42
impact of environmental and climate change issues on our business
operations and strive to integrate these concerns into the Group’s business
operations, strategy, and financial planning, encompassing both adaptation
and mitigation efforts.
Risk Management As part of our sustainability strategy, the Board and the Risk Management 43
Committee have actively considered the risks and opportunities associated
with climate change within the context of Kelington’s businesses, recognising
them as key material issues for the Group. Environmental and climate
change concerns have been integrated into the Group’s risk profile and are
deliberated during Risk Management Committee meetings.
Metrics and Targets Kelington employs environmental data monitoring to track and benchmark 49
our environmental progress and performance. We initiated the monitoring
of direct and indirect greenhouse gas emission data from our operational
business units since FY2020.
In FY2023, we achieved zero case of significant fines and non-monetary sanctions for environmental non-compliance from
government authorities.
39
Our Approach to Climate Change
Governance
Climate Change is discussed at senior management level and by the Board. The Board Risk Management Committee has
oversight of the key sustainability risks, including climate change, the quality of the controls and performance against our targets.
The Board Risk Management Committee met two times in FY2023.
The assessment of the resilience of our business to transition risks and to climate scenarios have been discussed with both
the Executive Management Committee (“EMC”) and the board as a key part of the business strategy discussion.
In this evolving operational environment, the Board with the support from the management team, adapts and creates resilient
business strategies and models that view progress on sustainability as a means of long-term value creation and innovation.
At the Management level, the Executive Directors are responsible for ensuring climate-related risks and opportunities are
fully integrated into the Company’s long term business strategy. The Executive Directors oversee and report to the Board on
management’s progress against the Company’s key strategic ESG objectives, covering various sustainability and climate-
related topics and initiatives.
Summary of Climate Risk and Opportunity Governance
Governance Overview
Board Board of The Board develops strategies to promote and strengthen ESG culture across the
Oversight Directors Group in pursuit of long-term sustainability. The Board carries the ultimate responsibility
over the effectiveness of our ESG risk management practices and ensures Kelington’s
sustainability principles are in line with the Group’s long-term business objectives.
ESG discussions have been integrated into the boardroom agenda and infused into
the board’s deliberations regarding the company’s strategies.
Audit The Audit Committee, with the assistance of RMC, has oversight over the Group’s risk
Committee management framework and obtains assurance, through the independent consultant
appointed, on the adequacy and effectiveness of the risk management and internal
control systems.
Risk The RMC reviews and discusses with management the Company’s Enterprise Risk
Management Management process including its risk governance framework, risk management
Committee practices and key risk factors.
The RMC review the risks and opportunities associated with climate change; review
climate change adaptation strategies and initiatives; address climate risks and
opportunities; and ensure that climate risks and opportunities are integrated into
KGB’s overall corporate strategy.
Executive Executive Executive Directors oversee corporate risk functions such as Business Continuity
Leadership Directors Management and Disaster Recovery. They are members of the Board and are
accountable for reporting to the Board on all risks and opportunities.
Chief Operating The Group COO holds responsibilities for the Group’s climate change strategy and
Officer implementation framework, with direct oversight by the Risk Management Committee.
Chief Financial Reports directly to the Executive Directors and oversees functions related to
Officer the governance of climate risks and opportunities including those related to the
Company’s reporting on its management of financially material climate-related risks
and opportunities and footprint.
40
Annual Report 2023
Governance Overview
Sustainability Executive In 2023, the Executive Management Committee (EMC) convened to review the strategic
Management Management plan for FY2024-2026, now fortified with the incorporation of ESG considerations and
Committee opportunities.
The EMC proactively addresses climate impacts, navigating the challenges posed by
escalating energy costs while capitalising on cost savings from operational efficiency
enhancements.
Furthermore, the EMC advocates for continuous monitoring and quantification

of company-wide climate-related risks and opportunities. Additionally, proactive
resiliency measures are undertaken to mitigate the potential impacts of natural
disasters on Kelington’s operations.
Sustainability The SWG is involved in collecting and tracking of key environmental metrics,
Working Group monitoring environmental performance targets and has ownership of related policies
and programming.
The SWG is also tasked with developing the Sustainability Statement and reporting
directly to the COO on a quarterly basis.
Ir. Raymond Gan (Group CEO), Puan Rahima (Independent Non-executive Director), Mr. Chin Wei Min (Independent Non-
executive Director) attended JC3 Journey to Zero Conference 2023 on 23 Oct 2023 at the prestigious Sasana Kijang, in
Kuala Lumpur. By engaging with JC3’s initiatives, the board demonstrated a profound awareness of the urgency surrounding
climate action and a willingness to lead by example.
41
KELINGTON’S CLIMATE CHANGE STRATEGY
Expected Outcome:
Reduce our carbon footprint and support our customers to achieve sustainable manufacturing process
and mitigate climate change.
We are focused on:
(1) Carbon reduction: We have successfully met our goal of reducing carbon emissions intensity by 20% by 2024, and
our focus has now shifted to setting science-based targets to achieve Scope 1, 2 and 3 net-zero emissions by FY2050.
Kelington’s Industrial Gases manufacturing activities are energy-intensive as the production and machinery operations
run for 24 hours daily. We are taking action to improve both productivity and efficiency, as we reduce emissions.
(2) Value engineering for sustainability: Incorporating sustainable design principle into our projects. Consider climate
risks from the way we design and construct new projects to closure and beyond.
(3) Engineer solutions to reduce environmental impact: Environmental engineering solutions to design and build
wastewater treatment plants that remove contaminants from wastewater before it is discharged into the environment.
We design and build Stripper Reclaim System (SRS) and allowed the manufacturer to recover and recycle the valuable
materials and thus reducing waste. Committed to designing exhaust systems that reduce noise pollution and equipped
with emissions reduction technology.
(4) Advocacy: Increase awareness of the urgent need to address climate change and engage both internal and external
stakeholders to drive change.
(5) Innovation: Explore opportunity to collaborate with international players to develop innovative technology that can
contribute the mitigation and adaptation to climate change. i.e solutions that can help to address climate change such
as energy storage, carbon capture and storage.
Since its inception, Kelington has been diligently developing a strategic plan that considers both environmental and
social risks. The greatest risk associated with the gas and chemical delivery system is the flammable, explosive, or
toxic materials that it carries. These substances can pose danger to people and property if a release occurs because
of a delivery system failure.
The climate change actions we take are consistent with our objectives of delivering world class and quality services
to meet our customers’ requirement without unnecessary harm, safely and cost effectively.
42
Annual Report 2023
Climate Change Adaptation Strategies & Initiatives
Given that greenhouse gas (GHG) emissions are a significant contributor to climate change, transitioning to a low-carbon
economy will profoundly impact Kelington’s long-term strategy and operations. Assessing the full range of impacts is
complex, as it involves navigating technical, social, and political factors over an extended period. Consequently, we integrate
climate change considerations into our strategic planning and commercial frameworks to comprehensively address risks and
opportunities.
Climate change is not just a concern but a strategic imperative for our business, requiring a holistic approach across all facets
of our operations. To ensure continual improvement, Kelington pledges to conduct an annual review of our climate change
approach as an integral part of our ongoing strategy refinement process.
We recognise that there may have been instances of inadequate or underreporting of total emissions data within the Kelington
Group. To address this, we are committed to enhancing our data collection processes by leveraging advanced technology.
This proactive step will enable us to attain more accurate and comprehensive emissions data, thus laying the groundwork for
setting science-based targets and advancing our commitment to environmental sustainability.
MANAGING CLIMATE RISKS AND OPPORTUNITIES
We address climate risks through our risk management framework. The framework reflects our exposure to a variety of
uncertainties that can have financial, operational and compliance impacts on our business performance, reputation and ability
to operate successfully. It includes clearly defined oversight responsibilities for the Board, Risk Management Committee, and
the Executive Management Committee, who are supported by the Sustainability Working Group and support functions, to
enable effective risk identification, evaluation and management across Kelington.
Climate Change Scenario Analysis
The Executive Management Committee conducted a comprehensive climate change scenario analysis to assess potential
impacts on our business operations under varying temperature increases, specifically focusing on short, medium, and long-
term effects. The study encompassed our key business segment, namely engineering and industrial gases. Based on our
analysis, climate change is anticipated to directly affect our business in the following ways:
• Intense storms and flooding could result in infrastructure damage, potentially disrupting
transportation and communication networks, thus affecting our operations.
Physical Impact
• Rising temperatures and changes in precipitation patterns may affect the availability and
reliability of water and energy resources, which are essential for manufacturing processes.
• The uncertain future of water quality, quantity, and availability could result in contractual
or legal obligations.
• Increased emissions reporting requirements may necessitate additional compliance
Legislative Impact
measures.
• Inadequate hazardous waste treatment could pose environmental risks and expose the
Group to legal and reputational liabilities.
• Procuring water from alternative sources or relocating operations due to business

interruptions may incur increased costs.
Financial Impact • Energy shortages may escalate production costs.
• Transitioning to lower emissions technologies could require substantial investments.
• The introduction of a carbon tax and higher sales costs may lead to increased expenses.
43
Climate-related risks and financial impacts
PHYSICAL RISKS POTENTIAL FINANCIAL IMPACTS
Chronic Hazards
Legal and
Sea Level Rise reputational
liabilities
Temperature Patterns
Physical damage to
Air Pollution assets and rising
insurance costs
Drought
Acute Hazards Supply Chain

disruptions
Flooding
Tropical Climate Financial

cyclones Risks Impacts Changes in
resource / input
prices
Landslides
We Engineer Solutions
Production /
TRANSITION RISKS Operation
disruptions
Policy & Legal Risks (e.g power,

transportation,
worker availability)
Reputation Risk
Technology Risk Changes in demand

for products /
services
Market Risk
44
Annual Report 2023
Potential Impacts of Climate-related Risks & Opportunities
Under Kelington’s risk management framework, emerging risks are identified, assessed and appropriately managed.
Kelington has used the major risk categories identified in the TCFD recommendations as the basis for its risk assessment:-
(i) Risks related to the transition to a lower-carbon economy

(ii) Risks related to the physical impacts of climate change
Potential Financial Impact Level: Timeline:

Short Term : 0-1 year
Low Medium High Risk Opportunity Medium Term : 1-5 years
Long Term : 5-20 years
Potential Impacts of Climate-

Transition related Risks and Opportunities
Risks on our business Short Medium Long Our Strategy
Policy and Current and emerging regulation Implementing ISO14001 Management

Regulations has the potential to impact System, to ensure full compliance with
business costs associated with environmental regulations.
meeting regulatory requirements
and the impact on semiconductor Continuous improvement of resource
markets. efficiency and reduction of greenhouse
gas emissions across our operations.
This includes the potential for
increases in carbon pricing and
emissions reporting obligations.
Market Chip manufacturing contributes To develop innovative solutions that

to the climate crisis. As the address environmental challenges and
semiconductor industry grows, enhance Kelington’s competitiveness and
and so with its carbon footprint. attract environmentally conscious clients.
The chip industry used different
gases during the production Explore tender opportunities on Wet
process, many of which have a Scrubber System; Greenhouse Gas
significant climate impact. Reduction System; VOCs Removal System;
Odor Control System; and acid / general /
Kelington’s products and exhaust / solvent ductwork system which
services have an important role in capable to remove harmful gases from
a low-carbon economy. semiconductor fabrication processes.
Promote our capability to design and

build Stripper Reclaim System (SRS) and
allowed the manufacturer to recover and
recycle the valuable materials and thus
reducing waste, saving on material costs,
and minimise the environmental impact.
Technology The development and deployment Opportunity to collaborate with international

of low-emissions technology players to develop innovative technology
minimise environmental impact that can contribute the mitigation and
while meeting consumer needs. adaptation to climate change. Thus to
increase corporate value and revenue from
Technology deployment in the expanded collaborations. We are seeking
electricity sector, and the sector’s to identify the technologies that are most
transition to low carbon, has the relevant and valuable to our business
potential to impact the future price and, where appropriate, to partner and
of purchased electricity. collaborate with others.
Negotiate long-term supply contracts

with energy providers or renewable
energy developers to secure stable and
predictable electricity prices.
45
Potential Impacts of Climate

Transition related Risks and Opportunities
Risks on our business Short Medium Long Our Strategy
Legal Climate change has the potential Regularly review sustainability

to result in legal compliance management framework includes policies,
problems and litigation. There governance structure, ESG integration
is increasing emphasis on the process, communications and continuous
duty of directors to consider and improvements.
disclose climate change risks.
Reputation Stakeholder expectations on We are committed to demonstrating

climate change are evolving our adherence to public commitments
and will impact the sector and regarding climate change by adopting
Kelington’s reputation and sustainable practices, minimise our carbon
operational capabilities. footprint, and aligning our disclosures
with best practices and globally accepted
frameworks.
Physical
Risks
Acute Changes to the intensity and We consider climate risks from the way
physical frequency of extreme events, we design and construct new projects to
risks such as severe floods, have the closure and beyond. We have seen the
potential to damage infrastructure impacts of climate change in recent years
and interrupt business and we are using scenarios to assess
operations. This could result in further medium to long-term risks.
increased operational costs and
loss of revenue from reduced
LCO2 production or suspension
of works. The changing nature
of extreme weather events also
has the potential to impact on the
design criteria for new projects.
Chronic Longer-term trends can be GHG Emission Reduction Initiatives. We

physical more difficult to identify and measure and track our carbon emissions
risks respond to. For example: at our offices and subsidiaries, with the
extreme weather resulting in base year of 2019.
supply chain disruptions and
increased operational costs; Kelington is committed to enhancing our
rainfall patterns may vary both data collection processes by leveraging
in terms of average rainfall, and advanced technology. This proactive step
seasonal variability, impacting will enable us to attain more accurate
water availability and requiring and comprehensive emissions data, thus
stronger discipline in water laying the groundwork for setting science-
balance management; and based targets towards achieving net zero
temperature increases will result emissions by 2050.
in more extreme-heat days. This
could have knock-on, indirect
impacts, including employee and
community health. We anticipate
that energy use profiles at
facilities may change, particularly
where energy is used for heating
or cooling.
46
Annual Report 2023
Green House Gas (GHG) Emission Management
One of the significant contributors to climate change is the emission of greenhouse gases (“GHG”). In line with global
efforts to reduce GHG releases, Kelington is committed to respond and act accordingly whilst improving our operational
efficiency. In return, Kelington enjoys cost savings by spending less on raw materials, energy, water and resource
recovery.
We strive to protect our environment and planet via mitigation of carbon dioxide emissions, waste reduction and the
preservation of natural resources. In FY2023, we reviewed and managed our environmental risks according to the ISO
14001:2015 Environmental Management System.
Kelington’s Environmental Initiatives in the areas of energy management, water management, waste management,
emission management, biodiversity conservation and recycling are presented in the table below:
Company /
Environmental Operation
focus area Environmental Initiatives country
Energy • Optimise manufacturing processes to reduce energy usage. Malaysia & China
Management • Temperature control for air conditioning. Group
• Turn off lights in rooms not used. Group
• Replacing faulty lights to LED lights which is more environmentally Group
friendly.
• Educating employees on energy saving through posters & emails. Group
• Solar Panel Installation Investment. Malaysia
• Video Conferencing to replace air travel. Group
Water • Water Management Plan outlining approach to manage and reduce Group
Management water resources.
• Regular checking and immediate action taken for any water leakage. Group
Waste • Scheduled / hazardous waste to be stored in designated container Malaysia
Management for onward disposal by Department of Environment (DOE) licensed
contractor to licensed location.
• Monitor non-recycled waste intensity and track progress towards waste Malaysia
reduction targets.
• Introduction of e-waste bin at office for employees to dispose household Malaysia
or office e-waste properly.
• Implement waste segregation practices to seperate recyclable materials Group
from general waste streams.
Emission • Capture waste gas emitted by a petrochemical complex, to be reused as Malaysia
Management a key raw material in our liquid CO2 production.
• Committed to enhancing emissions data collection processes, thereby Group
laying the groundwork for setting science-based targets aimed at
achieving net-zero emissions by 2050.
Biodiversity • Conducted Environmental Aspect Identification (EAI), Risk & Opportunities Malaysia
Conservation for Environment and Hazard Identification, Risk Assessment and Risk
Control (HIRARC) before new construction.
• Regular monitoring programme, continuous risk assessment and audits Malaysia
covering water quality, air quality and noise.
• Continuous participation in programmes that contribute towards positive Malaysia
biodiversity impacts.
Recycling • Implement comprehensive recycling program at all offices. Group
• Reduce paper printing under digitalisation program Group
47
OUR CARBON FOOTPRINT
To determine the carbon footprint of Kelington, we categorise our GHG emissions in Scope 1, Scope 2 and Scope 3 in
accordance with the Greenhouse Gas Protocol. Our calculation of Scope 1, Scope 2 and Scope 3 emissions are based
on the guideline on how to measure and report GHG emissions published by the Department for Environment, Food and
Rural Affairs, UK (www.defra.gov.uk).
In addition, we also refer to the UK Government’s GHG Conversion Factors for Company Reporting Rev 1.0 for the CO2e
data computation.
SCOPE 2 SCOPE 1(a) SCOPE 3(b)

Indirect Emissions Direct Emissions Other Emissions
Process emissions
Purchased materials
Direct gas emissions from
Water consumption, Papers,
carbon dioxide production site
Construction materials etc.
Owned Transport
Fuel used
Transport related activities
Business Travel (Land & Air)
Fuel Combustion
Natural Gas used
Consumption of purchased
Waste Disposal
electricity, heat & steam
Residual & Recyclable
Electricity
Fugitive Emission
None
Notes:
(a) Except for Carbon Dioxide (CO2), the current operations of Kelington do not emit other Scope 1 GHG emissions i.e Methane (CH4);
Nitrous Oxide (N2O); Chlorofluorocarbons (CFCs); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); sulfur hexafluoride (SF6); and
Nitrogen Trifluoride (NF3) in FY 2023.
Furthermore, the operations of Kelington Group (included manufacturing and construction processes) are not likely to cause Nitrogen
Oxide (NOx), Sulphur Oxides (SOx), Particular Matter (PM) and Volatile Organic Compounds (VOC) Emissions or air pollution.
(b) Scope 3 emissions are indirect emissions that occur because of Kelington’s operations, but from sources not owned or controlled by
Kelington i.e employee commuting, use of sold products, processing of sold products, investment, capital goods, transportation and
distribution etc.
Managing Scope 3 emissions is important because it allows Kelington to identify opportunities for reducing emissions throughout its
value chain. Addressing Scope 3 emissions is crucial for effectively managing climate change and achieving long-term sustainability
goals. Kelington’s SWG are working hard to gather the best information possible about scope 3 emissions to begin addressing this
significant part of our footprint.
48
Annual Report 2023
We recognise that there may have been instances of inadequate or underreporting of total emissions data within the
Kelington Group. To address this, we are committed to enhancing our data collection processes by leveraging advanced
technology. This proactive step will enable us to attain more accurate and comprehensive emissions data, thus laying
the groundwork for setting science-based targets and advancing our commitment to environmental sustainability.
Acknowledging the possibility of inadequate or underreporting of total emissions data within the Kelington Group, we are
dedicated to improving our data collection processes through the leveraging of advanced technology.
Through digitalisation, all ESG data can be seamlessly collected, inputted, and managed in a unified platform, ensuring
compliance with reporting standards or frameworks and eliminating the need for manual processes. This streamlined
approach not only enables Kelington to consolidate information but also facilitates the validation of data and tracking of
goals, empowering the company to take corrective actions promptly when necessary.
This proactive approach will facilitate the attainment of more precise and comprehensive emissions data, thereby establishing
the foundation for setting science-based targets and reinforcing our dedication to environmental sustainability.
METRICS AND TARGETS
Target:
FY2024
To reduce GHG (CO2) Emission Intensity by 20% as compared to base year.

Progress:
FY2023
YOY
CO2e Intensity Ratio -35.5%
Base Year:
492 CO e tonnes / RM’ million EBITDA
2
FY2020
CO2e Intensity Ratio 2,345 CO e tonnes / RM’ million EBITDA

2
GHG (CO2) Emission of Kelington Group
Unit of
GHG (CO2) Emission Measure FY2020 FY2021 FY2022 FY2023
Scope 1: Direct Emissions from manufacturing tCO2e 9,349 10,688 11,173 12,495
facilities, distribution tankers
+11.8%
Scope 2: Indirect Emissions from electricity tCO2e 2,281 2,270 3,004 3,807
purchased and used
+26.7%
Scope 3: Other Indirect Emissions from the Group tCO2e 5,583 5,470 33,605 24,137
activities
-28.2%
Total GHG (CO2) Emission tCO2e 17,213 18,428 47,782 40,439
-15.4%
49
Unit of
Scope 3 GHG (CO2) Emission Measure FY2020 FY2021 FY2022 FY2023
Purchased goods and services tCO2e 5,246 5,181 32,137 23,215

-27.8%
Capital goods tCO2e Estimate Pending
Fuel and energy related activities (not include in tCO2e Estimate Pending
Scope 1 or 2)
Upstream transportation and distribution tCO2e Estimate Pending
Waste generated in operations tCO2e 159 94 332 193

-41.9%
Business Travel (By Land) tCO2e 150 157 260 517
+98.9%
Business Travel (By Air) tCO2e 23 29 865 186
-78.5%
Employee Commuting tCO2e Estimate Pending
Upstream leased assets tCO2e Data not available
Investments tCO2e N/A
Downstream transportation and distribution tCO2e Data not available
Processing of sold products tCO2e Data not available
Use of sold products tCO2e Data not available
End of life treatment of sold products tCO2e Data not available
Downstream leased assets tCO2e Data not available
Franchises tCO2e N/A
Water Supply tCO2e 5 9 11 26

+136%
Other tCO2e Data not available
Total Scope 3 GHG (CO2 e) Emission tCO2e 5,583 5,470 33,605 24,137
-28.2%
Unit of
CO2 Equivalent Intensity Ratio Measure FY2020 FY2021 FY2022 FY2023
Scope 1: Direct Emissions from manufacturing tCO2e 9,349 10,688 11,173 12,270
facilities, distribution tankers
+9.8%
Scope 2: Indirect Emissions from electricity tCO2e 2,281 2,270 3,004 3,339
purchased and used
+11.2%
11,630 12,958 14,177 15,609
*EBITDA – Industrial Gases Division RM’ million 4.96 10.35 18.58 31.70
+70.6%
CO2e Intensity Ratio tCO2e / 2,345 1,252 763 492
RM’ million -35.5%
EBITDA
*Note: In view that Kelington’s Scope 1 and Scope 2 CO2 emission are mainly contributed from Industrial Gases Division’s LCO2 manufacturing
process and business activities, the EBITDA of Industrial Gases Division (excluding revenue generated from one-off project) was adopted
for CO2e Intensity ratio calculation.
50
Annual Report 2023
Key Highlights:-
• Kelington’s Industrial Gases Division has shown a positive trend towards sustainability by emitting fewer
greenhouse gases per unit of revenue. In FY2023, the CO2e intensity ratio improved by 35.5% to 492 tCO2e /
RM’ million EBITDA. This enhancement in CO2e intensity ratio is closely linked with a significant 70.6% increase
in EBIDTA, indicating improved energy efficiency and productivity within the division.
• In FY2023, the increased in LCO2 production required more electricity, heat, or steam, which in turn affected
Scope 2 emissions. Kelington’s Scope 2 emissions increase by 26.7% in FY2023, primarily due to the Industrial
Gas Division. However, the additional LCO2 production led to increased plant efficiency and energy-efficiency,
which mitigated the impact of the rise in Scope 2 emissions, resulting in a lower electricity intensity ratio. (Cross
Reference: page 59)
• Kelington achieved a 28.2% reduction in Scope 3 emissions, largely attributed to a 41.9% decrease in total
waste generated during operations, driven by reduced civil and structural works. Additionally, a 27.8% decrease
in material purchased was observed due to decreased construction activities, contributing significantly to the
reduction in emissions.
• The reduction in business travel related Scope 3 greenhouse gas (GHG) emissions by 37.5% in FY2023 mainly
attributed to optimise travel and increased use of virtual communication platforms.
• Collecting and compiling data on Scope 3 emissions poses significant challenges, as it entails sourcing
information from various entities such as suppliers, customers, and other stakeholders. This process can
be hindered by the unavailability or incompleteness of data, making accurate quantification of emissions a
daunting task.
• Scope 3 emissions encompass a wide array of indirect emissions throughout the entire value chain, rendering
them intricate and multifaceted. Identifying and prioritising the most impactful emission sources becomes
challenging, impeding the development of effective reduction strategies.
• To tackle these challenges, Kelington will implement ESG digitalisation solutions coupled with cloud-
based software and benchmarking data. This integrated approach aims to resolve complex issues such as
accurately quantifying tCO2e linked to acquisitions and precisely capturing employee commuting data. For
example, during the acquisition of plant and machinery, Kelington will utilise digital tools to conduct a thorough
assessment of GHG emissions. This encompasses evaluating emissions associated with both manufacturing
and transportation processes, enabling a comprehensive understanding of the carbon footprint.
51
SI
2 Pollution & Waste Management
Target:
FY2024
To reduce non-recycled waste intensity by 5% as compared to base year.

Progress:
FY2023
YOY
Non-Recycled Waste Intensity -67.6%
Base Year:
3.4 tonnes / RM’ million EBITDA
FY2020
Non-Recycled Waste Intensity 14.4 tonnes / RM’ million EBITDA
Prevent Pollution
In recognition of the heightened pollution risks inherent in manufacturing industries, Kelington prioritises environmental
stewardship in all our operations. We are committed to stringent pollution prevention measures, diligently ensuring
compliance with both local and international environmental standards.
At our Kerteh facility, where manufacturing activities occur, we proactively mitigate pollution risks through rigorous
monitoring initiatives. Engaging an independent company, we monitor key environmental parameters such as water
quality in nearby rivers, air quality, and noise levels on a monthly basis. These efforts align with the standards established
by the Department of Environment (DOE) Malaysia. We maintain transparency by making detailed data on sampling
locations and collected information readily available for inspection upon request.
All collected data undergoes monthly review by our management team, with prompt action taken should any sampling
test results approach alert thresholds. Additionally, we compile an Environmental Monitoring and Auditing Report
quarterly, which is then submitted to the local Department of Environment (DOE) office.
Sampling Locations Reference Standards
Water Quality • Sungai Labohan Class IIB of the National Water Quality
(Upstream,Midstream,Downstream) Standards of Malaysia
• Sungai Kerteh (Point 1 & Point 2)
Air Quality • Boundary of Factory Malaysian Recommended Ambient Air Quality
• Masjid Kampung Labohan Guidelines, 1989
Noise • Boundary of Factory Guidelines for Environmental Noise Limits and
• Masjid Kampung Labohan Control by DOE Malaysia 2007
In the FY 2023, we are proud to report zero instances of non-compliance with local government regulations and
standards, and consequently, no penalties were imposed related to environmental pollution.
52
Annual Report 2023
Waste Management and Reduction
As part of our sustainability efforts, Kelington aims to minimise the amount of waste we generate. Our Environmental
Working Committee monitors the Group’s waste management processes as we aim to mitigate the impact of waste on
the environment through the reduction, reuse, recycle and disposal hierarchy of waste management. We also exploring
innovative solutions such as carbon capture and utilisation.
Our approach to sustainable waste management / waste reduction
Industrial Gases Division
SOURCES
Carbon Capture
UTILISATION and Utilisation CAPTURE
TRANSPORTATION OUR CO2 RECOVERY

PROCESS
Our LCO2 manufacturing process is engineered to capture the waste CO2 emitted by our raw gas supplier, a petrochemical
complex, which is then transformed into liquid CO2 (LCO2). This innovative approach effectively curtails the release of
CO2 into the atmosphere, previously vented as emissions.
Through carbon capture and utilisation (CCU) processes, we repurpose CO2 for various beneficial applications, including
enhanced oil recovery, carbonation of beverages, and industrial manufacturing. By harnessing and repurposing CO2
in this manner, Kelington not only mitigates environmental impact but also generates economic value from what would
otherwise be classified as waste.
FY2020 FY2021 FY2022 FY2023
Waste Gas (Carbon Dioxide) 30,369 47,599 60,471 70,278

Reuse tonnes tonnes tonnes tonnes
53
UHP / Engineering Division
For UHP / Engineering division, our approach to waste management encompasses several key strategies:
Value Engineering: We focus on maximising value while minimising waste throughout our operations.
Active Employee Involvement: We encourage and promote the active participation of our employees in our recycling
program, fostering a culture of sustainability within our organisation.
Effective Solid Waste Segregation: We implement robust solid waste segregation practices at every stage of our
general construction projects, facilitating recycling efforts and reducing overall waste output.
Comprehensive Site Induction: We prioritise comprehensive site induction for both staff and subcontractors,
emphasising the importance of responsible waste management practices and providing detailed information on site-
specific waste management measures.
54
Annual Report 2023
Continuous Monitoring and Improvement: We diligently monitor non-recycled waste intensity, achieving a remarkable
76.4% reduction in FY2023 compared to the base year of FY2020.
Unit of
Engineering Division Measure FY2020 FY2021 FY2022 FY2023
Construction Waste tonnes 330 200 717 422

EBITDA – Engineering Division RM’ million 22.9 43.1 68.2 123
Non-Recycled Waste Intensity tonnes / 14.4 4.6 10.5 3.4
RM’million -67.6%
EBITDA
However, we recognise that the volume of construction waste is primarily influenced by the project mix, including factors
such as the nature of construction activities, materials used, and project duration. For instance, projects involving
extensive demolition or renovation typically result in higher waste volumes compared to new construction projects.
The waste generated by Kelington can be segregated into three main categories: Construction Waste, Scheduled Waste
and E-waste:-
Construction waste / Non-Recycled Waste
Construction waste usually comprises metal / steel, wood, concrete / cement and other paper / cardboard. In FY2023,
the total construction waste generated by Kelington was recorded at 422 tonnes, mainly generated by our general
contracting division in Malaysia. All construction wastes are separated at the designated waste collection areas at
the work sites. We engage licensed waste collectors to collect and dispose the wastes to the approved dumpsite and
landfill areas.
The total volume of construction waste / non-recycled waste generated in FY2023 witnessed a significant decrease of
41.1% compared to FY2022. This decline attributed to a reduction in civil and structural activities during the year
55
Construction waste generated in

How we manage
FY2020 FY2021 FY2022 FY2023 construction waste
KE Malaysia 303 193 621 406 Manage waste in accordance to The

Solid Waste and Public Cleansing
Management Act 2007 as well as the
local government rules and regulations.
KE Singapore 0 0 94 0 Dispose construction waste via
KE China 26 6 1 3 site waste management facilities
and in compliance with the waste
KE Taiwan 1 1 1 2 management regulations.
Ace Gases - Malaysia 0 0 0 11 N/A
Total Construction 330 200 717 422
Waste generated -41.1%
Resource Efficiency Program
Kelington’s resource efficiency program is a continuous initiative aimed at waste reduction by identifying and implementing
waste minimisation measures during detailed design phases. Leveraging Building Information Modeling (BIM) software,
our engineers create intricate digital representations of buildings and infrastructure. This technology empowers us to
optimise designs, accurately quantify materials, detect clashes, and assess environmental impacts. These capabilities
collectively contribute to significant waste reduction during the crucial design stage of construction projects.
Furthermore, our resource efficiency program prioritises the enhancement of on-site waste prevention strategies, aligning
closely with our commitment to sustainable practices and minimising environmental impact. Through the implementation
of these strategies, we aim to not only reduce waste during the design phase but also throughout the entire construction
process. This dedication to waste prevention is reflected in our company’s recycling waste data, demonstrating tangible
progress towards our sustainability goals.
According to our recyclable waste collection record, we recycled a total of 47 tonnes of industrial waste in FY2023.
Unit of
Measure FY2021 FY2022 FY2023
Recyclable steel and metal tonnes 39 60 44

Wood tonnes 0 1 3
Total Industrial Waste Recycled tonnes 39 61 47
-22.9%
Scheduled Waste
A small percentage of hazardous waste has been regarded as intractable, or difficult to safely dispose of without special
technologies and facilities. These wastes are known as scheduled wastes. To ensure adequate protection of human
health and the environment, Kelington is committed to handling our scheduled waste strictly according to specific
guidelines and regulations.
To bolster our waste management practices, Kelington is embracing and implementing the ISO14001:2015 Environmental
Management System as a guiding framework for the management of scheduled and hazardous waste generated. Within
our industrial gases division, we strive to curtail the generation of scheduled waste to minimise the need for handling.
Routine monitoring and maintenance protocols are diligently carried out at our plant site to mitigate the risk of leakage.
Furthermore, we have established an emergency response plan to swiftly and effectively manage any potential spillage
of hazardous materials, ensuring preparedness for unforeseen circumstances.
Unit of
Measure FY2021 FY2022 FY2023
Scheduled Waste tonnes 27 38 33
We disposed scheduled waste in accordance with the Environmental Quality (Scheduled Wastes) Regulations 2005.
Only licensed contractors are allowed to transport these scheduled wastes offsite to a suitable treatment facility.
56
Annual Report 2023
Electronic Waste
E-waste is electronic appliances that are broken, obsolete or reaching the end of their useful life. E-waste has been
categorised as Scheduled Waste SW110 First Schedule according to the Environmental Quality (Scheduled Wastes)
Regulations 2005 as it contains chemicals like mercury, lead, beryllium, and cadmium. Improper disposal or mishandling
during disposal can cause the release of hazardous and toxic chemicals into the soil, water, and air.
This would induce adverse health effects and cause a deterioration of environmental quality. With this in mind, Kelington
is committed to recycling this e-waste and creating awareness among employees on proper disposal of e-waste.
Dispose your electronic waste safely
In FY2023, we provide E-waste Collection Box at all offices in Malaysia, aimed to educate and raise awareness among
employees on the appropriate disposal process of e-waste. All the collected e-waste during this programme was sent
to licensed and DOE-registered e-waste recyclers for proper discard.
The breakdown of e-waste recycled for the past three years are as below:
Unit of
E-Waste Type Measure FY2021 FY2022 FY2023
Monitor Number 5 2 3
Notebook Computer Number 7 - -
Printer Number 1 1 2
Server Number - - -
Others i.e typewriter, desk phone, wireless mouse, laptop Kg 30 6 20
battery, laptop adapters & cables
SI
3 Resources Management
Target:
FY2024
Progress:
To reduce electricity intensity by 5% as compared to base year. FY2023
YOY
To reduce water intensity by 5% as compared to base year. Electricity Intensity -32%

452 MWh / RM’ million EBITDA
YOY
-24%
Water Intensity
Base Year:
FY2020 1,153 m / RM’ million EBITDA
3
Electricity Intensity 1,180 MWh / RM’ million EBITDA

Water Intensity 2,732 m / RM’ million EBITDA`
3
As stated in our Sustainable Development and Climate Change Position Statement, Kelington is channelling efforts to
maintain sustainable development and reduce climate change impacts by optimising our own environmental resource
usage, including energy, water and other utilities.
57
Energy Management
At Kelington, a significant portion of our business operations take place at customers’ sites and fabrication facilities. Given
the nature of our manufacturing activities, electricity consumption constitutes a substantial component of our operations.
Particularly within Kelington’s Industrial Gases manufacturing division, our production and machinery operations run
round-the-clock, necessitating a focused approach to energy management to optimise production efficiencies and
mitigate greenhouse gas emissions.
One of our primary strategies involves closely monitoring and analysing the Group’s energy usage. This meticulous
scrutiny enables us to identify opportunities for improvement in terms of cost-effectiveness, performance enhancement,
and quality assurance. Kelington is committed to enhancing energy efficiency by proactively identifying avenues for
energy reduction and exploring the adoption of cost-effective practices and technologies.
Our production teams diligently assess both internal and external impacts arising from our processes, with a keen focus
on the energy consumed during production activities. Energy reduction targets are set in alignment with the Group’s key
financial metrics, such as the cost of goods sold. Additionally, our local committees conduct monthly assessments of
the plant’s energy consumption to identify areas for improvement and address performance gaps. As part of our energy-
saving strategies, we prioritise seamless and efficient operations while adhering to scheduled equipment maintenance
to minimise downtime. Furthermore, management regularly compares energy usage across similar plants to uncover
further efficiency opportunities.
To ensure continuous improvement, we track and benchmark our energy usage against industry peers and engage our
employees in discussions about our long-term goals and commitments. It’s worth noting that our trackable electricity
consumption is notably lower compared to other industrial manufacturing facilities in Malaysia, a testament to our
ongoing efforts in energy management and sustainability.
The trackable electricity consumption of Kelington Group in FY2023 are as follows:
FY2023 Electricity Consumption Total Electricity Consumption

of Kelington Group (MWh)
KE Malaysia 10% 16,329
KE China 2% 12,887
KE Singapore 0% 9,783 9,735

KE Taiwan 0%
Ace Gases Malaysia 88%
KGB Group 16,329MWh
0 20% 40% 60% 80% 100% 2020 2021 2022 2023
58
Annual Report 2023
Electricity Intensity
The chart above demonstrates that the major portion of the Group’s electricity consumption was derived from our
Industrial Gases division, representing 88% of the total electricity consumption in FY2023. As such, we measure the
energy performance of our Industrial Gases division with energy intensity by determining how much energy is required
to generate RM1 million in EBITDA.
Unit of
Industrial Gases Division Measure FY2020 FY2021 FY2022 FY2023
Electricity Consumption MWh 5,853 9,377 12,331 14,321

EBITDA RM’ million 4.96 10.35 18.58 31.70
Electricity Intensity MWh / RM’mil 1,180 906 664 452
EBITDA -32%
In FY2023, our industrial gas manufacturing division witnessed a remarkable 70.6% growth in EBITDA, alongside a
commendable 32% reduction in energy intensity. This significant reduction can be attributed to various factors,
including enhanced productivity, improved plant efficiency, and strategic energy efficiency initiatives. These initiatives
encompassed effective production planning, optimisation of gas loading and unloading processes, and meticulous
maintenance of major equipment, among others.
Renewable Energy Generation
The Group’s commitment to mitigating our climate change impact involves looking at our working environment. It is our
objective to minimise the environmental effects of our operations and buildings.
As part of our endeavours, we aim to increase the usage of clean energy. Renewable energy (“RE”) is increasingly
playing an important role in decarbonising the power generation sector, and solar has been one of the top RE sources
for electricity generation. Since FY2011, Kelington has installed and maintained solar photovoltaic (“PV”) panels on the
rooftops of our office building in Shah Alam for a more sustainable energy source. Although the power generation from
solar PV tends to be deficient due to environmental impacts i.e dust accumulation, water droplets and bird droppings,
we managed to maintain the standard performance of our solar PV systems and generated 13,908 KWh solar power in
FY2023.
Unit of
KE Malaysia – Renewable Energy Measure FY2020 FY2021 FY2022 FY2023
Solar Power Generated KWh 20,538 18,557 11,236 13,908
59
Water Management
Clean freshwater is a scarce resource, and it is crucial that we manage its distribution and use. In fact, the significance
of clean water and sanitation has been highlighted as one of the United Nations’ Sustainable Development Goals
(“SDG”). As such, Kelington endeavours to aid millions of people to gain two of life’s most fundamental necessities:
clean water to drink as well as safe and private restroom to use via strict implementation of our water management plan.
Our comprehensive water management plan encompasses the following key actions:
Engineering Solutions: We design and install wastewater treatment systems aimed at effectively removing contaminants
before returning water to the sewage system, ensuring environmental responsibility and regulatory compliance.
Data Analysis and Monitoring: Our Plant Operation team conducts regular collection and analysis of water consumption
data from meters. Through monthly monitoring, we gain insights into our water usage patterns, setting targets based on
historical data and industry benchmarks. We diligently track progress toward reducing water consumption and promptly
implement conservation measures if consumption trends indicate deviation from targets.
Regulatory Compliance: We closely monitor our plant’s process parameters to ensure that all water discharges meet
local government regulations. At our primary operating site in Kerteh, Terengganu, we conduct monthly checks on water
quality, rigorously ensuring that test results adhere to limits set by Malaysian government authorities.
Health and Safety Measures: Our cooling tower water treatment systems are equipped to prevent the growth of
Legionella bacteria, safeguarding the health of our workforce and prioritising employee well-being.
Despite operating in regions not classified as water-stressed or scarce, we recognise the intrinsic value of water as a
precious resource. As such, we remain committed to optimising water usage and continuously monitoring water quality
at our manufacturing plant. This proactive approach underscores our dedication to sustainability and environmental
stewardship.
Water Withdrawal
The Group primarily consumes municipal water supply, which is mainly derived from the water reservoir (municipal
potable water). We do not utilise any other water sources such as surface water from rivers, lakes, natural ponds,
groundwater from wells, or external wastewater. The total water withdrawal within our organisation amounted to 76,813
m3 in FY2023.
Unit of
Water Withdrawal (by sources) Measure FY2020 FY2021 FY2022 FY2023
Surface water from rivers, lakes, natural ponds m3 0 0 0 0

Groundwater from wells, boreholes m 3
0 0 0 0
Used quarry water collected in the quarry m3 0 0 0 0
Municipal potable water m3 14,831 25,730 31,241 76,813
External wastewater m3 0 0 0 0
Total Water Withdrawal m3 14,831 25,730 31,241 76,813
+145.8%
60
Annual Report 2023
Water Consumption
Our LCO2 manufacturing plant located in Kerteh relies on a significant volume of water for essential processes, including
wash water and cooling tower make-up water. In 2023, our engineering division in Malaysia utilised a significant amount
of water, surpassing levels observed in previous years. This increase was primarily driven by the extensive cleaning
efforts undertaken by our team, who were tasked with cleaning 22 units of newly constructed stainless steel tanks in
preparation for project handover.
FY2023 Water Withdrawal Total Water Consumption

of Kelington Group (m3)
KE Malaysia 49% 76,813
KE Shanghai 3%
KE Singapore 0%
KE Taiwan 0%
31,241
Ace Gases Malaysia 48% 25,730
14,831
KGB Group 76,813m 3
0 20% 40% 60% 80% 100% 2020 2021 2022 2023
In our Industrial Gases division, we utilise water intensity parameters to gauge the water consumption required to
generate an EBITDA of RM1 million. In FY2023, with the EBITDA of the LCO2 business division experiencing a notable
growth of 70.6%, water consumption also saw an increase of 30.4%. Despite this rise in water usage, there was a
noteworthy improvement of 23.5% in water intensity.
Unit of
Industrial Gases Division Measure FY2020 FY2021 FY2022 FY2023
Water Consumption m3 13,552 24,791 28,012 36,539

EBITDA RM’ million 4.96 10.35 18.58 31.70
Water Intensity m / RM’mil
3
2,732 2,395 1,508 1,153
EBITDA -23.5%
Water Discharge
The relationship between water discharge and adverse environmental effects is not linear as an increase in water
discharge volume does not necessarily correspond to a greater impact. With this in mind, the environmental impacts
shall depend on the quality of the water discharged and the sensitivity of the receiving waterbody.
Our LCO2 manufacturing facilities at Kerteh generates an intensive volume of water discharge. Nonetheless, this
discharge does not require treatment and is mainly emitted to the drains and subsequently flows to the rivers and sea.
We undertake quarterly monitoring of the water discharge according to the DOE’s Environmental Management Plan. In
FY2023, there were no reported incidents of non-compliance with the local government rules and standards, with no
penalty imposed in relation to water supply and discharge.
61
Furthermore, it is important to highlight that the water used in the cleaning process for the newly constructed stainless
steel tanks was discharged without causing harm to the environment. This is ensured through our commitment to
conducting regular inspections of the water discharge, ensuring that any potential environmental impact is minimised
and compliance with environmental regulations is maintained.
Unit of
Water Discharge by destination Measure FY2020 FY2021 FY2022 FY2023
Ocean total discharge m3 0 0 0 0

Surface water total discharge m 3
14,831 25,730 31,241 76,813
Subsurface / well total discharge m3 0 0 0 0
Off-site water treatment total discharge m 3
0 0 0 0
Beneficial / other use total discharge m3 0 0 0 0
Total Water Discharge m 3
14,831 25,730 31,241 76,813
+145.8%
SI
4 Support Biodiversity
Biodiversity provides functioning ecosystems that supply oxygen, clean air and water, pollination of plants, pest control
and wastewater treatment, among others. Hence, supporting biodiversity is therefore an integral part of Kelington’s
efforts to protect and preserve the environment. Kelington acknowledges that economic activities and population growth
may result in pollution and climate change, which may threat biodiversity. As such, we are committed to reducing the
impact of our operations on biodiversity through systematic management approaches.
Kelington’s Sustainable Development Position Statement reaffirms our commitment to environmental protection and
biodiversity preservation. We adhere to a systematic approach to ensure that our business activities minimise adverse
effects on the environment. Additionally, we actively engage with governmental agencies and non-governmental
organisations (NGOs) to promote positive impacts on biodiversity conservation.
Key Initiatives and Strategies
Kelington implements a range of initiatives and strategies to reduce our operational impact on biodiversity:
• Environmental Management Systems: We integrate environmental considerations into our management systems
to identify and address potential impacts on biodiversity.
• Stakeholder Engagement: We collaborate with stakeholders, including governmental agencies and NGOs, to
support biodiversity conservation efforts and promote sustainable practices.
• Environmental Impact Assessment: We conduct environmental impact assessments for any new proposed
projects that we intend to develop to understand local ecosystems and identify measures to minimise our impact.
• Habitat Restoration: Kelington supports habitat restoration projects to enhance biodiversity and mitigate the effects
of habitat loss.
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Annual Report 2023
Achieving Net Positive Biodiversity Impact
None of our operational sites, either owned or leased, are located in or adjacent to protected areas or areas of rich
biodiversity value. Nonetheless, Kelington strives to preserve the biodiversity of the locations and their surrounding
environment. Except for the Group’s major gas plant located in Kerteh, Kelington carries out its business activities at our
customers’ premises or within developed industrial areas.
Our overarching goal is to achieve a net positive biodiversity impact. By implementing sustainable practices and
supporting biodiversity conservation initiatives, we aim to contribute to the enhancement of biodiversity and ecosystem
resilience in the areas where we operate.
Target:
FY2024
• Generate positive biodiversity impacts.

• Ensure responsible sourcing practices that reduce
Progress:
negative impact on biodiversity.
FY2023
• Support habitat restoration

activities at Borneo
• Promote climate action via
Base Year: KEHourForEarth
FY2020
Complying landscaping requirement according to the local

regulations.
Continuous auditing and monitoring
At Kerteh, local employees are assigned responsibilities to manage our biodiversity impacts through regular monitoring
programme, risk assessments and audits covering water quality, air quality and noise. Guided by the relevant regulatory
environmental standards and guidelines, we conduct regular air and water quality test, as well as a noise level survey
at Kerteh to ensure the effective implementation of pollution prevention and mitigation measures to minimise negative
biodiversity impacts on the surrounding environment.
Environmental Impact Assessment shall be conducted for any new proposed projects that we intend to develop and
subsequently carry out business activities. In FY2023, our operations at Kerteh conducted monthly monitoring of the air
and water quality (rivers nearby), in addition to the noise level survey. All the test results are within the limits set by the
Malaysian government authorities.
Additionally, we also submit the Environmental Monitoring and Auditing Report (“EMAR”) to the DOE on a quarterly
basis to report on our compliance with the relevant standards and guidelines. During the year, we did not encounter any
negative comments or fine penalties from the local authorities in the locations where we operate.
63
Continuous participation in programmes that contribute towards positive biodiversity impacts
Known for its incredible biodiversity, Borneo is home to numerous rare and unique animals. Through the “ROAR
initiative”, Kelington contributes to the restoration of vital forest corridors that have been degraded through deforestation.
Kelington’s support for this reforestation project helps to create habitats for endangered animals (which include the
Bornean orangutan and Borneo Pygmy Elephant).
In the “ROAR Initiative” program, coordinated by APE Malaysia (Animal Projects & Environmental Education Sdn Bhd),
the primary objective is to revive and safeguard the biodiversity of the Lower Kinabatangan region in Sabah, Malaysia.
KE Hour for Earth
On 23 March 2023, we participated

in World Wildlife Fund’s landmark
movement, Earth Hour and
encouraged all our employees to
switch off their lights and spend 60
minutes doing something positive
for our planet. On Earth Day, we
encouraged our people to take a
natural walk, sorting trash at home,
separate recyclable items into
different bins, cooking dinner with
sustainable ingredients etc.
64
Annual Report 2023
SUSTAINABILITY
SUSTAINABILITYSTATEMENT
STATEMENT
Value Engineering
through
Innovation and
Collaboration
Be an effective, accountable
and transparent organisation
We Care for Business
Highlights Page
SI Sustainable Supply • Create awareness on Kelington’s Expectation 67
9 Chain
SI Governance & • Business Ethics and Policies 69

11 Ethics • Risk Management – our approach to a better business 70
SI Economic Growth • Our Journey Towards Sustainability for a Greener Growth 71

12 & Profitability
SI Quality Products & • Ensuring Customer Satisfaction 73

13 Services
SI Technology • Technology and Innovation framework 74

14 & Operational
Innovation
65
SI
9 Sustainable Supply Chain
Target:
FY2024 Progress:
Communication of Kelington’s Expectation to 100% of selected Key Vendors FY2023
Vendor Briefing
90% procurement in significant locations of operation was from local suppliers. 86%
Local Sourcing
Base Year:
FY2021 FY2020 82.6%
Vendor Briefing 2% Local Sourcing 93%
With operations spanning across four key geographies - Malaysia, Singapore, China, and Taiwan - Kelington has actively
engaged with over 2,208 global and local external providers in our supply chain during FY2023. These providers
encompass material suppliers, subcontractors, transporters, and professional service providers.
Given the diverse nature of our business, Kelington boasts a broad customer base spread across various geographies,
primarily comprising multinational corporations committed to stringent standards in social, safety, health, and
environmental practices. Aligning with these requirements, we ensure that our next tiers of suppliers and subcontractors
uphold similar parameters.
Recognising the paramount importance of integrating sustainability into our operations, Kelington has embedded
sustainability goals into our long-term strategy. We hold our external providers accountable for adhering to high
standards, thereby fostering a cascade of sustainable practices throughout our supply chain.
Throughout FY2023, our focus remained steadfast on key areas including occupational health and safety, environmental
preservation, combating corruption, and upholding human rights. Additionally, we maintained rigorous tracking and
monitoring mechanisms for local procurement, prioritising local sourcing whenever feasible to directly contribute to the
economies of the regions where we operate.
66
Annual Report 2023
Management approach
Effective supply chain management is imperative for optimising operational efficiency, fulfilling customer demands,
and achieving sustainable business success. At Kelington, we prioritise fostering robust collaboration and partnerships
with key stakeholders, including suppliers, distributors, logistics providers, and customers. Through strategic alliances,
Kelington leverages expertise, resources, and innovative practices across our supply chain network.
Proactive identification, assessment, and mitigation of supply chain risks are fundamental components of our management
approach. We embrace a culture of continuous improvement, driving operational excellence and innovation within our
supply chain. To this end, we conduct regular performance evaluations, implement feedback mechanisms, and engage
in benchmarking exercises to identify and capitalise on opportunities for optimisation.
We integrate sustainability principles into our supply chain strategy to minimise environmental impacts, ensure compliance
with regulations, and align with customer expectations regarding responsible sourcing and manufacturing practices.
Since FY2022, we have strengthened our external provider screening process by integrating additional evaluation
sections into our subcontractor qualification process. These added qualification criteria align closely with our Responsible
Supply Chain Policy, Environmental Policy, and Safety and Health Policy, ensuring that our partners uphold the same
high standards of sustainability and responsibility that we do. In addition, our Sustainable Supply Chain (SSC) working
group has been tasked with advancing sustainability initiatives and engaging with our selected key external providers
through formal and informal channels. Our objectives include:
a) Assessing the level of understanding among our key vendors regarding sustainability practices and their ethical
commitments.
b) Identifying any challenges they face in delivering supplies or services to our esteemed customers.
c) Offering assistance and support to our vendors in their sustainability journey, as needed.
Through these efforts, we aim to foster collaborative relationships, promote sustainable practices, and enhance the
overall resilience and responsibility of our supply chain ecosystem.
Create awareness on Kelington’s Expectation
In FY2023, Kelington conducted sustainability briefings for 43 out of 50 selected subcontractors, outlining our company’s
sustainability policies. Moreover, we actively encourage our key vendors to enhance their performance through
participation in a sustainable development management program. This program incorporates specific Key Performance
Indicators (KPIs) and targets aligned with local government regulations and international standards.
To effectively monitor the sustainability commitment of our key subcontractors and ensure the delivery of mutually
beneficial solutions in a sustainable manner, our SSC working group communicates Kelington’s expectations and
collects relevant data through due diligence questionnaires. In FY2023, 80 questionnaires were completed, revealing
that Kelington’s key subcontractors range from “pre-compliance” to “compliance” on the sustainability spectrum.
Recognising the critical importance of ethical issues within the supply chain, we understand their potential impacts on
our business, including reputation, legal and financial liability, and customer loyalty. As such, our SSC working group
diligently assesses potential risks on a regular basis and promotes collaboration and coordination across the supply
chain to ensure resilience and continuity of operations.
67
Local Sourcing
RM’ Million
Total Spending 2023 Local Spending % of Local Sourcing
1200
99.7% 99.4%
1000
85.3%
80.6%
800
82.6%
600
51.0%
400
200
0%
Industrial Gas - Engineering - Engineering - Engineering - Engineering - Kelington Group
Malaysia Malaysia Singapore China Taiwan
We are dedicated to supporting local vendors whenever

possible, as part of our commitment to bolstering % of Local Sourcing
homegrown businesses and contributing to the growth 100
of our nation’s economy. This not only fosters economic 82.5% 82.6%
development but also helps maintain positive community
relations. In our procurement process, Kelington actively 75
76.2%
seeks opportunities to procure materials and services
from local suppliers, prioritising their inclusion whenever 50
feasible.
Aligned with our core value of building partnerships, we 25

actively engage in developing smaller local companies
by offering them favorable supply conditions. These may 0
include more flexible payment terms, technical assistance, 2021 2022 2023
and guidance, among other benefits.
Note: After careful review and analysis, the decision was made
Since our inception, we have remained steadfast in our
to reinstate the three-year local sourcing data, accounting
efforts to nurture the local economies where we operate, for the change in calculation methodology. Instead of solely
cultivating strong relationships with various stakeholders considering the number of vendors, the new formula now
in these markets. Leveraging our established innovation incorporates the total value of sourcing. This adjustment
network, Kelington and our local partners are mutually ensures a more comprehensive assessment of local sourcing
practices, capturing the full extent of sourcing activities and
benefiting from these enduring relationships, driving
their regional impact.
sustained growth and prosperity for all involved.
In FY2023, we successfully procured over 82.6% of our total purchases groupwide from local external providers,
demonstrating our commitment to supporting local economies. Geographically, KE Taiwan and KE China led the way
with an impressive 99% local sourcing, closely followed by KE Singapore and KE Malaysia at 85% and 81% respectively.
The industrial division’s lower procurement percentage of 51% was primarily attributed to the acquisition of capital assets
from overseas sources. Moving forward, we remain steadfast in prioritising local external providers for our purchases,
aligning with our ongoing commitment to fostering economic growth and sustainability within the communities we
operate in.
68
Annual Report 2023
SI
11 Governance and Ethics
Target: Base Year: Progress:

FY2024 FY2020 FY2023
Committed to train all employees

on the Anti Bribery and Corruption
100% employees was trained 100% employees
on ABC and risk management. was trained on ABC and risk
Policy (ABC Policy) and risk
management.
management.
100% 100% vendors

Committed to
communication for all vendors on
100% vendors acknowledged acknowledged on ABC Policy
on ABC Policy
the ABC Policy.
Zero incident of corruption
Zero incident of corruption ZERO incident of corruption and bribery case
and bribery case and bribery case
Sound corporate governance is a material topic to Kelington and forms the basis for us to ensure long-term viability and
business growth. Kelington is committed to deliver sustainable value to our stakeholders, guided by the Malaysian Code
on Corporate Governance in ensuring the principles and best practices of good corporate governance are applied
throughout the Group. The corporate governance framework and practices, as in the Corporate Governance Overview
Statement on pages 121 to 149 of the Annual Report, demonstrate the robust board and management accountability to
our stakeholders.
Business Ethics and Policies
In adherence to the principles of sound corporate governance, the Board endeavours to promote a culture of integrity
and ethical values. Kelington has put in place its set of Code of Ethics and Conduct, which includes the Whistleblowing
Policy and No Gift Policy.
The Code of Ethics and Conduct is applicable to all directors and employees within the Group as well as third parties
performing works or services for and on behalf of the Company. It governs the desired standard of behaviour and ethical
conduct expected from each individual to whom the Code of Ethics and Conduct applies.
Apart from that, Kelington has enforced a number of Company codes and policies that establish the rules of conduct
within the organisation; representing the main points of reference for all who work for and with us. These codes and
policies can be found on the Company’s website.
Board Policy Corporate Code and Policies Sustainability Policies
• Board Diversity Policy • Risk Management Policy • Sustainable Development Position

• Remuneration Policy • Anti-Bribery and Corruption Policy Statement
• Whistleblowing Policy • Environmental Policy
• Code of Ethics and Conduct for • Community Investment Policy
employees and third parties • Diversity, Equity and Inclusion Policy
• Corporate Disclosure Policy • Human Rights Policy
• Conflict of Interest Policy • Responsible Supply Chain Policy
• Fit and Proper Policy • Safety and Health Policy
• External Auditors Policy • Quality Policy
• Drug Free Environment Policy
• Sexual Harassment Policy
69
At Kelington, annual awareness training on ethics is required to reinforce the importance of ethical behaviour, promote a
culture of ethics and mitigate risk for the Group. The percentage of employees who have received training on ABC policy
and risk management in FY2023 are as below:-
Malaysia Singapore China Taiwan
Director and Senior management 100% 100% 100% 100%

Middle management 100% 100% 100% 100%
Engineers / Executive 100% 100% 100% 100%
Operators / Technicians / Non Executive 100% 100% 100% 100%
In FY2023, there were no reported incidents of corruption and bribery; no employee dismissed due to non-compliance
with ABC Policy; and no fines, penalties or settlements made in relation to corruption. Kelington Group also confirm that
no political contributions were made during the year.
Risk Management: our approach to a better business
Kelington integrates material sustainability topics into our overall Risk Management framework by identifying specific
risks, opportunities, and key priorities to drive our strategic decisions.
Sustainability risks are considered from three perspectives: review of risks from external sources, such as environmental
trends, expectations from stakeholders, and legal and regulatory developments; review of potential impact on the
environment; and review of new and emerging risks from external sources as well as within the organisation.
Examples of ESG-related risks considered in our risk profile include workplace injuries, waste & hazardous material
disposal, collusion frauds and supply disruption, among others. Read more about the risk management process in our
Annual Report on page 155.
Violations of any codes and policies can be reported through any of these mechanisms:
Application Mechanisms
• Employee to raise their grievance in matters involving Grievance Procedures email:

work relations and conditions. [email protected]
• Member of the Public to raise any concern or complaint
in their dealing with or in relation to Kelington Group. Grievance Procedures Hotline:
+603 7845 8751
• Stakeholder / Public to report wrongdoings by any Whistleblowing Email:
employees in the conduct of Kelington’s business or [email protected]
affairs
In FY2023, there has been only one instance of whistleblowing reported, concerning matters related to staff ethics and
internal processes. Following our established protocols, the reported issue was promptly investigated by our corporate
compliance and integrity department and the appointed independent internal auditors.
We are pleased to confirm that the matter has been thoroughly addressed and resolved in accordance with our policies
and standards. As part of our commitment to transparency and accountability, we take all whistleblowing reports seriously
and ensure that appropriate actions are taken to address any concerns raised. We remain steadfast in upholding the
highest ethical standards and maintaining the integrity of our internal processes.
70
Annual Report 2023
SI
12 Economics Growth and Profitability
Our Journey Towards Sustainability for a Greener Growth Revenue RM’000
2012 The global wafer and semiconductor industries cut back on capital expenditure in view 116,168
of the weaker consumer sentiment globally. We realised our revenue was heavily reliant
on semiconductor industry.
2013 The high technology industry in which we served was subject to cyclical fluctuations. We 117,416
adapted to the change and successfully captured new opportunities across the market.
We embarked on our sustainability commitment and published our 1st Sustainability
Statement which was incorporated in our 2012 Annual Report.
2014 Leveraging on our core skill in engineering, we expanded to healthcare and process 189,102
engineering industries.
2015 Gained traction in Singapore and continued expanding our presence in the market. 206,356
2016 We continued to remain true to our core expertise in engineering and have accumulated 343,344
a strong portfolio of civil, mechanical and electrical projects. We commenced new
business activity involving supply of industrial gases.
2017 Succesfully clinched several contracts for UHP works from global semiconductor giants 313,333
in China, adding significant credence to our global customer profile with high-tech
clients in China.
2018 Along with our delivered continuous improvement in the operational performance as well 350,023
as constant growth in orderbook, our market capitalisation has doubled in Y2017 with
increasing interest in the Group’s shares amongst institutional investors.
2019 Slow down of semiconductor industries were largely affected by the trade war between 379,768
the largest chip producers, US and its largest chip consumer, China. Key development of
the year was the opening of an in-house fabrication facility in China and commencement
of operation of our new Carbon Dioxide Recovery Plant.
Identified the top 4 most material sustainable matters which are risk management;
workers’ safety & health; business growth; and quality products and services. Discussed
sustainability topics on managing our business; our people; focus of customers; and
environmetal care and protection.
2020 The prospects of strong and promising global growth were muted by the rapid spread of 394,599
Covid-19 pandemic that has severely impacted several key industries around the world.
On the other hand, the demand for integrated circuits continued to be at an all-time
high due to global chip shortages. Notwithstanding, Kelington continued to thrive with
record-breaking revenue.
We initiated quarterly environmental monitoring process to monitor water quality, air

quality and noise to minimise pollution risk for our manufacturing activities at Kerteh.
Our operations in Singapore obtained Singapore Green and Gracious Builder (“SMC”)
certification. Kelington Group was added into the FTSE Bursa Malaysia EMAS Index.
71
Our Journey Towards Sustainability for a Greener Growth Revenue RM’000
2021 2021 has been eventful for us at Kelington as we maneuvered through the fluid operating 517,825
conditions due to the heightening Covid-19 cases around the globe. Notwithstanding,
the Group remained steadfast and focused on fulfilling the surging orders from our
customers, which bolstered our financial performance for financial year ended 31
December 2021 (“FY2021”) to a historic high.
We established Sustainability Policies and Guidelines, groupwide sustainability

governance framework; and a base line for sustainability management.
During the review period of December 2021, Kelington met FTSE4GOOD criteria and
was added into:
• FTSE4Good Bursa Malaysia Index

• FTSE4Good Bursa Malaysia Shariah Index
2022 Kelington accomplished its most successful year to date, breaking new records in 1,278,837
terms of financial performance and value of new contracts secured. The revenue has
exceeded RM1 billion for the first time, marking a significant milestone in the Group’s
history. In addition, Kelington is also building a new on-site gas supply scheme to
provide hydrogen, nitrogen, and oxygen to an optoelectronics semiconductor giant in
Kulim, Kedah.
2023 Despite headwinds from a semiconductor market downturn, Kelington’s revenue 1,614,449
continued to soar to a second year of record high of RM1.6 billion FYE 2023. The Group
also reached a new significant financial milestone, surpassing the RM100 million mark
in net profit for the first time.
Kelington’s business success is founded on the principle of long-term value creation for our stakeholders. We achieve
this by upholding leadership positions in our core markets, harnessing innovative technologies, leveraging the expertise
of our employees to meet the ever-evolving demands of customers, and strategically entering new markets. Our robust
economic performance serves as a solid foundation, empowering us to consistently deliver excellence to our customers.
Our business model is explained in detail on pages 8 to 9 of this Report.
Kelington’s economic performance is intricately linked to the utilisation of six essential capitals: Financial, Manufactured,
Intellectual, Human, Social, and Natural. Our sustainability initiatives play a pivotal role in enhancing Kelington’s capacity
to generate financial value.
Our full economic performance can be found in our audited financial statements, as part of our FY2023 Annual Report:
Group Financial Highlights, pages 4 to 5.
Group Financial Statements, pages 172 to 280.
72
Annual Report 2023
SI
13 Quality Products and Services
Target:
FY2024
To achieve average customer satisfaction rate of 90%.

Progress:
FY2023
Customer Satisfaction Rate
Base Year:
88%
FY2019
Customer Satisfaction Rate 88%.
Kelington serves a wide range of customers from various industries with different requirements but they have one thing
in common: they require high quality products and services from us. We are expected to be meticulous and careful
in the work that we perform from UHP systems, construction management to industrial gases supply. Each project we
undertake must comply with the pre-defined objectives of our clients and we have tight control over project costs,
delivery time, accurate specifications and prioritising safety. Some of our gases products from our Ace Gases group
goes to the Food & Beverage industry, which requires us to maintain the highest quality to guarantee food safety to the
public. Our working philosophy of “Safety First, Quality Always” underlines the superior working standards we place
through implemented policies and is reflected in our zero lost time records.
Management approach
To ensure consistently high-quality standards across all our operations, the Group adheres to international quality and
food safety standards in conducting our business activities. Our Engineering division, responsible for project management
and construction, holds ISO 9001 certification, a testament to our commitment to quality management systems.
Additionally, our gas manufacturing business, serving the Food & Beverage industry, holds ISO 9001, FSSC 22000, and
Halal certifications, underscoring our dedication to quality, food safety, and adherence to religious dietary requirements.
We rigorously monitor and maintain product quality through sophisticated analysers on a regular basis. Standard
Operating Procedures (SOPs) are meticulously crafted in accordance with guidelines outlined by the aforementioned
quality certifications. We also actively solicit feedback from customers, utilising Non-Conformity Reports (NCR) and
Corrective Action Requests (CAR) to continually improve our performance and ensure the consistent delivery of
high-quality products and services.
Our Business Operations Certification
Malaysia - Engineering ISO 9001:2015

Malaysia - Ace Gases ISO 9001:2015, FSSC 22000, Halal certification (Jakim)
Singapore - Engineering ISO 9001:2015
China - Engineering ISO 9001:2015
China - Manufacturing ISO 9001:2015, SEMI S2-0810E, SEMI S8-0218
73
Ensuring Customer Satisfaction
Ensuring the satisfaction of our customers stands as a cornerstone of our business continuity. It not only dictates our
capacity to secure new and repeat business but also reinforces our ongoing relationships, paving the path towards
sustained economic success. With unwavering commitment, we prioritise meeting and exceeding our customers’ needs
and expectations.
Our annual customer survey serves as a pivotal tool designed to gauge the critical factors influencing customers in
their choice of a business partner or long-term supplier. Kelington’s comprehensive annual customer survey assesses
various performance benchmark skills, including:
• Timeliness and Reliability of Product / Service Delivery

• Quality of Products and Services
• Responsiveness to Customer Needs
• Communication with Customers
• Compliance with Safety and Environmental Standards
By meticulously analysing feedback across these key areas, we continuously refine our practices to ensure unparalleled
customer satisfaction and drive sustained growth and success for our business.
Customer Satisfaction Survey (“CSS”)
2019 2020 2021 2022 2023
Average 88% 93% 91% 91% 88%

Customer
Satisfaction Rate
Total no. of CSS 20 17 51 62 88
conducted
2019 2020 2021 2022 2023

No. of CSS Average No. of CSS Average No. of CSS Average No. of CSS Average No. of CSS Average
conducted Rating % conducted Rating % conducted Rating % conducted Rating % conducted Rating %
Engineering 17 86% 12 90% 35 94% 40 93% 47 94%

Division
Industrial Gases 3 100% 5 100% 16 85% 22 86% 41 82%
Division
SI
14 Technology and Operational Innovation
Since 2000, Kelington has been at the forefront of engineering and installing highly specialised Ultra High Purity (“UHP”)
systems tailored for the semiconductor and biotechnology manufacturing sectors. Our extensive expertise extends
across diverse applications including wafer fabrication, LCD TFT, biotechnology, pharmaceuticals, solar cell production,
and industrial gases, among others. Throughout the intricacies of the production line within manufacturing facilities, the
precision of gas and chemical purity is paramount for chip-making processes.
Continuously advancing, Kelington is dedicated to enhancing our capacity for knowledge, creativity, and innovation,
meeting and surpassing the rigorous demands of the semiconductor and biotechnology industries. Beyond traditional
engineering roles, we distinguish ourselves by seamlessly integrating specialised engineering expertise with
comprehensive insights into gas and chemical dynamics.
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Annual Report 2023
In an industry characterised by dynamism and rapid technological evolution, Kelington’s unwavering commitment to
safety and quality is globally recognised and endorsed by our esteemed clientele.
We firmly believe that sustainable competitive advantages and value creation are attainable only through strategic
technology investments and operational innovation. Thus, we continuously scrutinise and optimise our operations,
leveraging the latest technological advancements. Through our dedication to innovation, we not only enhance operational
efficiency and reduce costs but also minimise environmental footprints. Our organisational ethos fosters a pervasive
Technology and Innovation mindset among our workforce, ingrained as an integral aspect of our corporate DNA, driving
us towards excellence.
Kelington adopts a robust Technology and Innovation framework, guiding our endeavors and channeling innovative
initiatives towards targeted focus areas.
Collaboration & Research &

Partnerships Development
Continuous TECHNOLOGY
Improvement and & INNOVATION Digitalisation
Adaptation FRAMEWORK
Network Security & Risk Assessment &

Data Protection Identification
Research and Development (R&D)
Our UHP division operates in a high-tech environment sees constant advancement in new technology. To stay competitive
in the market, we endeavour to roll out new products designs to offer to customers. In this respect, we had set up a
Research and Development (“R&D”) center in China to focus on developing new UHP equipment to support our other
subsidiaries in bidding for new UHP contracts. The R&D center, which is located at Chuzhou, China had so far submitted
two applications for patents of our new innovations of highlow temperature-controlled exchanger and specialty gas
cabinet together with its exhaust system.
In FY2023, we had spent a total amount of RM11.9 million for R&D and this marks the sixth consecutive year we invest
in R&D since we set up our Chuzhou center. The R&D activities have so far yielded encouraging results where our
newly developed Gas Cabinet designs had managed to obtain the SEMI S2 and SEMI S8 certification and accepted as
qualified vendors by major Wafer Fabs customers.
75
Collaboration and Partnerships
Kelington actively pursues collaborations with international stakeholders to spearhead the development of innovative
technologies aimed at both mitigating and adapting to the challenges of climate change. Our focus lies in fostering
solutions designed to combat climate change, including advanced greenhouse gas treatment systems, exhaust gas
abatement technologies, energy storage solutions, and carbon capture and storage innovations.
By partnering with leading technology vendors and service providers, we tap into their specialised expertise and solutions
to fortify our cybersecurity measures, ensuring they are finely tuned to the unique needs and complexities of our industry.
Digitalisation
Digitalisation is an overall driver of organisational transformation that impacts every part of our business. Kelington
advocates that the smart application of business digitalisation will lead to significant increase in business productivity
and cost reduction, thus resulting in enhanced business performance.
With this concept in mind, Kelington is committed to exploring opportunities for digitalising our operations and processes,
covering various aspects from corporate endeavours to project and manufacturing activities. We embrace digitalisation
initiatives with the goal of optimising operations, enhancing efficiency, and leveraging cutting-edge technologies.
Furthermore, we prioritise the seamless integration of robust cybersecurity controls into our digital transformation efforts.
Digitalisation has transformed the landscape of engineering drawings, with computer-aided design (CAD) software
revolutionising the creation process by offering versatile tools for generating precise 2D and 3D drawings, eliminating
the need for manual drafting and reducing errors. Building Information Modeling (BIM) has further enhanced project
visualisation and collaboration by providing detailed 3D models containing comprehensive project data, facilitating better
understanding and decision-making among stakeholders. Additionally, BIM facilitates clash detection and construction
sequencing, pre-emptively addressing conflicts and minimising errors and delays.
Moreover, digitalisation streamlines processes by automating tasks previously performed manually, enhancing efficiency,
and minimising errors. Collaboration tools such as video conferencing and instant messaging foster seamless teamwork,
while centralised document management systems enable easy access and management of documents from a single
location. Remote access to systems and data promotes flexibility and agility, reducing dependency on physical office
presence. Leveraging Enterprise Resource Planning (ERP) systems enables real-time data-driven decision-making and
faster information sharing across the organisation, empowering management with timely insights for strategic planning
and execution.
Risk Assessment and Identification
In FY2023, we diligently conducted cybersecurity risk assessments to pinpoint potential vulnerabilities and threats across all
digital assets and systems. Our methodology included prioritising risks based on their potential impact on critical business
operations, safeguarding intellectual property, protecting client data, and maintaining regulatory compliance standards.
Network Security and Data Protection
Kelington employs robust network segmentation and firewall solutions to effectively isolate critical systems and safeguard
sensitive data from unauthorised access. Additionally, all sensitive data is encrypted both in transit and at rest, ensuring
comprehensive protection against potential breaches. Furthermore, we have implemented data loss prevention controls
to proactively mitigate unauthorised data exfiltration, thereby ensuring full compliance with stringent data privacy
regulations. In FY2023, Kelington experienced zero incidents of complaints regarding breaches of customers’ privacy
or loss of customer data.
Continuous Improvement & Adaptation
We diligently monitor customer needs, market dynamics, and regulatory shifts to pinpoint opportunities where emerging
technologies can provide solutions or add value for our clients. By proactively engaging with customers, we gain
insights into their challenges and collaborate with them to develop innovative solutions.
Internally, we cultivate a culture of continuous learning to ensure that our team stays abreast of emerging technologies
and their potential applications. We encourage participation in training programs, workshops, and industry conferences
to foster expertise and stay updated on the latest trends.
In tandem, Kelington maintains its agility and adaptability in response to evolving cyber threats and emerging technologies.
We continually refine our cybersecurity strategies and frameworks to effectively mitigate new risks, while nurturing a culture
of cybersecurity awareness and accountability across all levels of the organisation. Our employees are encouraged to
promptly report any suspicious activities or security concerns, enabling us to proactively address potential threats.
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Annual Report 2023
Building
a Thriving
Workplace
for Employees
We Care for People
Highlights Page
SI Occupational Our approach to workplace safety and employee well-being 78
5 Safety & Health
A. Management System 79
B. Safety Governance 79
C. Hazard Identification, Risk Assessment and Risk Control
Procedure 83
D. Emergency Preparedness 83
E. Communication makes workplace safer 83
F. Safety & Health Awareness and Competencies 84
G. Safety Recognition Program 85
H. Prioritise Employees’ Health and Welfare 85
Our Commitment to Global Health 85
Safety and Health Performance 86
Recognition and Awards 87
SI Talent Management • Employee Turnover Rate 88

6 & Development • Employee Engagement 89
• Employee Benefits 91
• Opportunities for Growth & Development 92
SI Diverse & Inclusive • Workforce analysis 94

7 Workplace
SI Respect Human • Human Rights Management 98

8 Rights • Contact Points for the general public and other stakeholders 98
77
SI
5 Occupational Safety & Health
We place a high priority on the safety and well-being of our employees, recognising that occupational safety and health
(OSH) is of paramount in the workplace. In the construction industry, where the risk of injury is particularly high, ensuring
a safe working environment is crucial. This responsibility extends not only to individual work sites, but to all operations
across the organisation.
We are committed to implementing safety measures aimed at preventing work-related illnesses and injuries, fostering a
productive and healthy workforce. We strive to enhance our occupational health and safety performance by proactively
implementing globally recognised standards such as ISO 45001:2018 Occupational Health & Safety Management
System (OHSMS).
Our dedication to safety is in line with UN SDG No. 3, which aims to ensure health and well-being for all. By prioritising
occupational safety and health (OSH) and implementing measures to prevent accidents and enhance employee well-
being, we are confident in our contribution to this global objective.
Kelington is committed to fostering a secure and healthy workplace for our employees and workers. Recognising safety
as a collective obligation, we are dedicated to continuously enhancing our occupational health and safety performance
by adhering to internationally recognised standards. Through these efforts, we safeguard our personnel while also
playing a role in creating a healthier and safer global community.
Our approach to workplace safety and employee well being
Our operations span various locations, making it vital for us to adopt a systematic approach to creating a safe working
environment at all project sites. To achieve this, safety considerations and practices have been incorporated into
our Standard Operating Procedures (SOP) as a guideline for all employees and workers who perform work involving
hazardous materials, equipment or operations.
Our Safety and Health Policy, along with our SOP and protocols, articulate our principles and unwavering dedication
to fostering a secure and healthy workplace for our employees and stakeholders. This commitment also extends to
our approved suppliers, appointed subcontractors, and service providers. We maintain a vigilant approach, ensuring
rigorous adherence to our safety and health policies. Any unsafe practices are deemed unacceptable, and swift action
will be taken against violations.
To ensure effective communication and accessibility, employees and workers can access safety manuals and safety
information via various channels, such as emails and newsletters, safety info and signage posted throughout the
workplace, daily tool box meetings and mass tool boxes, occupational safety and health training and education, and
communication during routine safety inspections and safety line walks. We also share quarterly S&H Communication
Report to promote learning and best practices.
We believe that enhancing safety efforts is essential, which is why we ensure that all employees and workers at our sites
have proper training, experience and knowledge to conduct their tasks in a proper manner. In addition, we equip our
staff with ergonomic tools, protective equipment and first aid kits. All relevant safety requirements, measures, work rules,
procedures and protocols set out in safety manuals, handbooks and documents are reviewed and updated regularly to
ensure continuous improvement of our safeguards.
At Kelington, we prioritise building a healthy workforce, and our Human Capital Strategy reflects that. We have crafted
employment packages with a range of entitlements and benefits to improve the well-being of our employees and assist
them in achieving work-life balance. We also offer healthcare insurance and medical coverage for accidents and
hospitalisation to all employees and direct family members who qualify for a health insurance subsidy.
At Kelington’s workplace, we prioritise a culture of caring for the well-being of our people, where safety and health stand
as paramount values. We maintain unwavering vigilance and dedicate continuous efforts to ensure that all practices
align with our stringent safety and health policies.
We believe that investing in our employees’ well-being and prioritising a culture of caring ultimately leads to our continued
success.
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Annual Report 2023
How does Kelington manage occupational health and safety
A) Management System
Kelington has implemented comprehensive and well-documented Occupational Safety and Health (OSH) policies
and procedures with the aim of creating a safe and supportive working environment for all individuals working at
our workplace. Our OHS Management System (OHSMS) encompasses all employees of Kelington Group as well
as individuals who are not employees but whose work or workplace is under the control of Kelington.
As at 31 December 2023, Kelington’s OHSMS has achieved 92% certification to ISO 45001:2018, demonstrating
our strong commitment to maintaining a high standard of health and safety measures for our employees and
other individuals under our care. Kelington is committed to advocating best practices and to ensure its safety
performance is benchmarked against industry standards.
Group Operating Occupational Health & Safety

Activities Workplaces Revenue (%) Management System
• Construct Customers’ site- 38% • ISO 45001:2018 certified since

specialised Singapore December 2020*
facilities
• Construct Customers’ site- 14% • Certified to OHSAS 18001:2007 from
mechanical China; UHP June 2019 to June 2020
and electrical Fabrication Facilities- • ISO 45001:2018 certified since August
systems China 2020*
• Installation of gas Customers’ site- 40% • Certified to OHSAS 18001:2007 from
and chemical Malaysia July 2014 to Sept 2019
distribution • ISO 45001:2018 certified since July
system 2020*
• Fabrications Customers’ site- 2% • Adapting safety & health standards to
Taiwan ensure workplace safety.
Manufacturing and Manufacturing 6% • Adapting safety & health standards to
trading of industrial Facilities-Malaysia ensure workplace safety and target to
and specialty gases obtain ISO 45001:2018 certification by
Y2024.
* Note: Regular audit was performed by the certification institution to verify Kelington’s conformity to the certification
criteria of ISO 45001:2018. Continual improvement is an on-going process via internal audits and regular reviews
of safety & health performance.
B) Safety Governance – Leading safety and health at work
At Kelington, our core belief is “Safety First, Quality Always”, which guides the way we operate our business. We
are fully committed to safeguarding the health and safety of not only our employees but also workers and members
of the public who may be impacted by our operations. This makes up an essential part of risk management led by
the Board.
By prioritising safety and health, we aim to continue delivering high-quality services while ensuring the well-being
of our people and the public.
In year 2023, Kelington adopted the following safety governance structure to lead and promote health and safety
across the Group.
79
The
Board
CEO
Executive Management Committee
Group Safety & Health Officer
Regional Safety & Health Lead
On-site Safety & Health Committee
All employees & workers
• Setting the Strategic Direction: The Board sets the overall strategic direction
of KGB, including our commitment to safety and health. The Board establish
policies and guidelines that align with KGB’s values and long term goals.
• Oversight & Governance: The Board provide oversight and governance
regarding health, safety and environment matters. They review and approve
safety policies, monitor compliance with regulations, and ensure that
management implements effective safety programs.
The Board • Risk Management: The Board via the Risk Management Committee (RMC)
accesses and manages OSH risks and work with management to mitigate risk
effectively. Agendas for RMC meetings include health, safety and environment
topics.
• Accountability: The Board holds the CEO and executive management
accountable for safety performance. They review safety metrics and quarterly
reports.
• Leadership & Culture: The CEO provides leadership in creating a culture of

safety throughout KGB Group.
CEO • Strategy implementation: CEO work with EMC to develop action plans, allocate
resources, and drive initiatives that enhance safety performance.
• Policy implemention: The Executive Management Committee (EMC) is

Executive responsible for implementing safety policies and procedures in alignment with
the Board’s directive and CEO’s vision.
Management • Operational Implementation: They oversee the operational aspects of safety &
Committee health programs, ensuring that safety measures are integrated into all levels of
activities.
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Annual Report 2023
• Developing Safety Policies & Procedures: Developing and implementing

comprehensive safety policies and procedures that align with regulatory
Group Safety & requirements and industry best practices.
• Training and Education: Organise and facilitate safety training programs for
Health Officer employees at all levels.
(a certified Greenbook
• Safety Audits and Inspections: Arrange safety audits and inspections, provide
holder who is registered
recommendations for corrective actions to address any safety deficiencies
as a certified safety
and health officer with identified during safety audits and inspections.
the Director General • Safety Reporting & Analysis: Maintain accurate records of safety incidents,
of the Department of near misses, and safety related data.
Occupational Safety and • Emergency preparedness & Response: Develops and implements emergency
Health in Malaysia.) response plans to effectively respond to workplace emergencies.
• Regulatory compliance: Stay abreast of relevant safety regulations and
standards applicable to KGB’s industry and locations.
• Developing Regional Safety Policies and Procedures: The Regional Safety

and Health Lead is responsible for developing and implementing safety policies
and procedures tailored to the specific needs and regulatory requirements of
the region. They work closely with KGB Group safety teams to ensure alignment
with overarching safety goals and standards.
• Training and Education: They coordinate and deliver safety training programs
for employees within the region.
• Regulatory Compliance: Provide guidance and support to local management
teams to address regulatory requirements effectively.
• Data Analysis and Reporting: They analyse trends and metrics to identify
areas for improvement and provide regular reports to regional and corporate
leadership on safety performance.
• Incident Management: In the event of a safety incident or accident within the
region, they lead the incident management process, including investigation,
root cause analysis, and implementation of corrective and preventive actions.
They collaborate with local management and corporate safety teams to ensure
Regional that lessons learned are shared and applied across the organisation.
Safety & Health • Communication and Collaboration: The Regional Safety and Health
Lead serves as a point of contact for safety-related issues within the region,
Lead communicating regularly with local management, corporate safety teams, and
other stakeholders.
• Demonstrate a strong commitment to safety and health: Tasked with
overseeing various aspects of the working environment to ensure the safety and
well-being of all individuals involved. This includes:
√ Conduct and review Hazard Identification, Risk Assessment and Risk

Control (“HIRARC”).
√ Emergency response testing.
√ Incident and accident investigation.
√ Workplace inspection/ audit.
√ Develop Safe Work Instructions.
√ Assist in development of safety and health rules and safe systems of work.
√ Review effectiveness of safety and health program.
√ Carry out studies on the trends of accidents and incidents.
√ Review the safety and health policies at workplace.
81
• Our Safety & Health Committees (“SHC”) at project sites primarily responsible
to identify, evaluate, and manage safety and health hazards within workplace
the respective facilities. SHC is responsible for improving safety and health
conditions, promoting safety awareness, and providing a forum for employees to
voice their safety concerns. SHC shall ensure all workers are well-equipped with
safety tools and equipment, and are responsible for scheduled maintenance of
equipment.
• The duties and responsibilities of the SHC includes:-
√ Conducting regular safety inspections to identify potential hazards and

make recommendation for improvement.
√ Establish and update health and safety standards, rules and procedures,
that are communicated to all workers to ensure adherence to OSH
requirements.
√ Use color codes, posters, labels or signs to warn employees of potential
hazards.
√ Communicating safety information, conduct daily toolbox meeting and
provide safety training.
√ Review and investigate accidents and incidents that occur in the workplace
to determine the root cause and recommend corrective actions.
√ Keep records of work-related injuries and illnesses.
On-site Safety √ Convene meetings on a quarterly basis while providing a communication
& Health and participation channel that can be utilised to discuss safety matters of
Committee our employees, appointed contractors and visitors at our premises and
workplaces. These meetings actively involve worker representatives in the
(SHC) discussions.
• The Chairman of SHC reports directly to the Executive Management Committee
to ensure that the Board is kept abreast of Kelington’s overall health and safety
performance and matters.
• The SHC is formed with representative of employees and employers as illustrated
in the figure below.
EXECUTIVE DIRECTOR
SHC CHAIRMAN
SHC SECRETARY
MANAGEMENT EMPLOYEE
REPRESENTATIVE REPRESENTATIVE
• All Kelington’s employees, approved vendors and appointed subcontractors

are obligated to work in a safe manner, to co-operate and to act responsibly
All Employees with the aim of preventing injury to themselves and others as well as to the
and Workers environment.
• Promptly report all accidents or incidents, as well as near miss cases to line
management, according to the Incident Reporting Guidelines.
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Annual Report 2023
C) Hazard Identification, Risk Assessment and Risk D) Emergency Preparedness

Control Procedure
Emergency preparedness is a cornerstone of the
Kelington places safety as a top priority, employing Occupational Health and Safety (OHS) Management
thorough risk assessment procedures for new System, comprising vital processes for anticipating
operations and large-scale projects. The Hazard and managing potential emergency situations. Our
Identification, Risk Assessment, and Risk Control on-site Emergency Response Team (ERT) is tasked
(HIRARC) committee meticulously evaluates potential with implementing the Emergency Response Plan
risks throughout various project stages, including (ERP) in response to categorised emergencies. To
project scope, risk assessment matrix, timelines, ensure readiness and proficiency in our planned
and approval levels. This process undergoes an responses, we conduct drills at least once a year
annual review, with additional reviews conducted and review our ERPs as needed.
as required or upon the identification of new work
processes. Led by the HIRARC team in collaboration E) Communication makes workplace safer
with process experts, this approach aligns with the
ISO 45001:2018 standard. Kelington places utmost importance on workplace
safety and prioritises the well-being of employees
The HIRARC team is tasked with identifying and stakeholders. Our Occupational Health
potential hazards, assessing associated risks, and and Safety Communication, Participation, and
implementing strategies to mitigate or manage Consultation Management Procedure Manual
them. This may involve developing policies and provide a comprehensive framework for fostering
procedures, delivering employee training, or a culture of safety and accountability. Through this
introducing engineering controls. The outcomes manual, we ensure that all stakeholders are informed
of hazard identification and risk assessment are about potential hazards and equipped with the
communicated to relevant stakeholders, including knowledge and tools to prevent them, promoting
management, employees, and external parties such effective communication and collaboration.
as regulators and customers.
Our Safety and Health Working Group ensures
Within our industry, specific work-related hazards dissemination of our Safety and Health Policy to
pose a risk of high-consequence injury, including suppliers and invites them to participate in awareness
falling from height, electrocution, exposure to training programs. This aligns suppliers with our
flammable materials, and machinery toppling. safety standards and helps identify and mitigate
In the fiscal year 2023, due to the continuous potential hazards in our supply chain. Employees and
implementation of hazard management measures, workers are actively involved in aspect and impact
no incidents were reported relating to these identified analysis, hazard identification, risk assessment, and
hazards. incident investigations, promoting understanding
and ownership of safety measures.
The management of change process oversees
modifications to existing operations or projects, We have a robust incident and accident reporting
mandating risk assessments based on project procedure that mandates prompt reporting to line
classification to identify and address potential risks management and investigation by the safety and
early on. To bolster safety measures, Kelington health department. Lessons learned from incidents
implements a “Stop Work Policy,” enabling individuals, are shared through toolbox meetings, facilitating
including non-employees, to halt unsafe activities preventive measures and swift action. Formal
without fear of reprisal. Additionally, a “Bad Weather reviews of incidents occur at quarterly Safety,
Policy” suspends outdoor work during adverse Health, and Environment (SHE) committee meetings
conditions. Daily toolbox meetings at project sites and annual management review meetings, fostering
foster communication about safety concerns, while continuous improvement in our safety and health
a “Whistleblowing Policy and Procedure” provides a initiatives. In FY2023, while no serious incidents were
secure reporting channel for unsafe acts or hazards, reported, five OSHE related reports were submitted
safeguarding workers against reprisals. and resolved internally, reflecting our commitment to
proactive risk management.
Kelington has implemented a Permit-To-Work (PTW)
system, requiring employees and contractors to Transparent Communication
conduct Risk Assessments or Job Hazard Analyses
for high-risk and non-routine tasks. These evaluations Transparent communication is vital when addressing
gauge hazard risk levels and must be accompanied safety or health issues in the workplace. Kelington
by detailed Job/Work Method Statements outlining prioritises prompt and transparent communication
work scope, activities, identified hazards, and to maintain trust and prevent further safety or
control measures. All PTWs undergo evaluation and health issues. Our biannual Safety and Health
approval by the safety and health manager before (S&H) Communication Reports are distributed to
work commencement, with daily monitoring ensuring all employees and interested parties, detailing
adherence to safety protocols. Non-compliance any accidents or incidents resulting in injuries or
results in PTW suspension until rectification, fatalities. These reports include information on safety
maintaining stringent safety standards. leading indicators, incident details, root causes, and
preventive measures. By fostering a culture of safety
through open communication, we aim to address
hazards proactively and prioritise safety for all.
Transparent communication empowers employees
to identify and mitigate potential hazards, enabling
Kelington to effectively manage risks, prevent injuries
and illnesses, and reduce associated costs.
83
F) Safety & Health Awareness and Competencies
Kelington acknowledges the pivotal role of training in mitigating workplace accidents. Our commitment to safety is
reflected in regular safety training sessions and daily on-job training during toolbox meetings.
Topic of training sessions covered in year 2023 includes:
• Hazard Communication • Fire Watcher

• Chemical Safety • Flagman and Spotter
• Personal Protective Equipment (PPE) • Workplace Ergonomics
• Fire Prevention and Emergency Evacuation • Mobile Elevated Work Platform (MEWP)
• Working at Heights and Fall Protection • Health Awareness
• Confine Space Awareness • Scaffold Safety
• First Aid, CPR and AED • Electrical Safety and Equipment Use
• Authorised Entrant and Standby Person • Rigging & Slinging
By monitoring training hours, we identify evolving training needs, enabling us to adapt programs to address
emerging hazards effectively. In 2023, we conducted 4280.5 training hours in health and safety, benefiting 326
employees, underscoring our dedication to ensuring a safe working environment.
Health & Safety General Training

which includes Safety
Country Total Training Total No. of Total Training Total No. of
Hours Employee Trained Hours Employee Trained
Malaysia 965 115 967 125

Singapore 2,379.5 145 3,457.0 274
China 846 63 1,601.0 325
Taiwan 90 3 38 2
Total 4,280.5 326 6,063 726
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Annual Report 2023
G) Safety Recognition Program
Kelington implements a Safety Recognition Program to honor employees who uphold workplace safety standards,
offering tangible rewards and meaningful recognition for their achievements.
Additionally, we celebrate safe man hours, acknowledging employees for their exceptional safety performance
and fostering a culture of safety and excellence. These initiatives not only show appreciation for employees’
dedication but also motivate others to prioritise safety protocols and strive for excellence in their work.
H) Prioritise Employees’ Health and Welfare
Kelington prioritises the health and welfare of its employees, a core aspect of our human capital strategy. In
addition to mandatory pre-employment health screenings, we provide comprehensive healthcare coverage for
employees and their eligible family members. We invest in the professional development of our workforce through
various training opportunities, empowering them with new skills and knowledge.
To ensure the immediate well-being of our employees, we have established first aid rooms and deployed medical
professionals at project sites. This proactive approach ensures easy access to medical attention whenever needed,
further demonstrating our commitment to employee health and welfare.
Our Commitment to Global Health
At Kelington, we are committed to improving global health equity by raising public awareness of non-communicable and
infectious diseases such as HIV/AIDS, malaria, and tuberculosis. We firmly believe that prevention is better than cure,
and community awareness is key to fighting these diseases effectively.
To this end, we regularly publish posters and newsletters that provide the latest information and preventative measures
against these illnesses to our employees. By raising awareness, we can help our employees understand the risks
associated with these diseases and encourage them to take preventive measures to protect themselves.
85
Safety and Health Performance
Figure 1
All Employees(1) All workers who are not Employee(2)

Work-related injuries FY2023 FY2022 FY2021 FY2023 FY2022 FY2021
Number of fatality(3) as a result of work- 0 0 0 0 0 0

related injury
Number of high-consequence work- 0 0 0 0 0 0
related injury
Number of recordable work-related injury 1 2 1 4 2 2
Number of lost time injury (4)
0 0 0 3 0 0
Lost time incident rate 0 0 0 0.12 0 0
Number of hours worked 1,741,838 1,400,120 954,803 5,158,312 3,940,817 1,827,048
Notes:
(1)
All individuals who are employed by the company, including both permanent and contract employees regardless of their job
function or whether they work full-time or part-time.
(2)
All individuals who were working as contractors for the company, regardless of the specific project they were working on.
(3)
An injury leading to immediate death or death within one year from the date of the accident.
(4)
Lost days (consecutive or not), counted from and including the day following the day of accident, includes injury, diagnosis of
occupational poisoning and occupational disease measured in calendar days, the employee was away from work.
Accumulated LTI Free Man Hour TRIFR/MILLION HOURS WORKED

TRIFR of
since Y2010 Employee
27.3 1.43 TRIFR of

Million Contractor
21.9
Million Overall TRIFR
19.5 1.09
Million 1.05
1.08
0.78
0.75 0.72
0.56 0.57
0.51
0.38
2021 2022 2023 2020 2021 2022 2023

Figure 2 Figure 3
Our group has recently achieved a notable safety Our Total Recordable Injury Frequency Rate (TRIFR) has
milestone by reaching zero fatalities and accomplished demonstrated year-on-year improvement, decreasing
a total of 19.5 million safe man hours since Year 2010. from 0.75 per one million hours worked previously to 0.72
In 2023, our Malaysia operation encountered a challenge in FY2023. Additionally, our accident rate stands at 1.74
with three Lost Time Injuries (LTIs), necessitating the reset accidents for every 1,000 employees.
of our previously attained milestone of 14 million LTI-free
man-hours for Malaysia, resetting it to zero. Despite this Our work-related injuries and TRIFR for both employees and
setback, our commitment to safety remains resolute. We non-employees are presented in Figure 1 and 3. The TRIFR
are proud to report zero fatalities, and we are actively is determined by dividing the total number of recordable
reducing our Total Recordable Injury Frequency Rate work-related injuries by the total number of hours worked,
(TRIFR), demonstrating our continuous progress toward then multiplying by one million hours. Our regional offices
achieving significant safety milestones. provide this information monthly, encompassing all
Kelington employees and contractors, with no exclusions.
Our health and safety data from Operation in Malaysia
undergo verification by SHASSIC and Intertek.
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Annual Report 2023
Lost Time Injury
We regret to report that despite our utmost efforts, Kelington Group did not sustain a zero Lost Time Injury (LTI) rate
for the year 2023. The recorded LTI rate for the year stands at 0.09, which, while commendable, does not meet our
aspiration of achieving zero LTIs. The increase in the LTI rate to 0.09 can be attributed to various factors, notably the
nature and extensive scale of our civil works in Malaysia. Moving forward, Kelington will take additional measures to
improve LTI rate, including intensified safety training programs, enhanced risk assessment procedures, and stricter
adherence to safety protocols on all our job sites. We recognise the importance of prioritising the safety and well-being
of our employees above all else, and we remain dedicated to achieving our goal of zero LTIs in the future.
Recognition and Awards
We are delighted that our dedication to upholding elevated standards of quality, safety, and professionalism has been
acknowledged through the CIDB SCORE program. The Construction Industry Development Board (CIDB) Malaysia
has awarded Kelington’s operations in Malaysia with a distinguished 4-star rating. One of our project sites in Malaysia
underwent an Safety and Health Assessment System in Construction and attained a four-star rating with a score of 89%.
In FY2023, our Kelington Group was privileged to receive safety accolades from esteemed customers, acknowledging
our outstanding safety record. Additionally, we were presented with an appreciation certificate from DOSH for achieving
5 million safe man-hours at one of our project sites in Malaysia..
Furthermore, we were honored to receive the Premier GOLD Award in the 19th MOSHPA OSH Excellence Award for
OSHE Management in EPCC. This prestigious accolade underscores our steadfast dedication to safeguarding the
health and safety of our employees and all stakeholders engaged with our organisation.
Every award or expression of appreciation from our stakeholders serves as a testament to the tireless efforts and
dedication of our entire team in upholding a safe and healthy work environment. We are steadfast in our commitment
to maintaining the highest safety standards and will persist in prioritising the health and well-being of all individuals
involved in our operations.
Our Singapore operation has been proudly

acknowledged as a BizSAFE partner.
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SI
6 Talent Management and Development
Target:
FY2024 Progress:
Average Training Hours per employee 12 hours FY2023
Average Training Hours per

Maintain annual staff turnover rate below 15%
employee 15.5 hours
Staff turnover rate
Base Year:
18.1%
FY2019
Average Training Hours per employee 10.36 hours

Staff turnover rate 8.9%
Kelington’s strength lies in the collective talent of our team. To nurture this asset, we prioritise maintaining a supportive
work environment conducive to growth and productivity. Employees who feel connected to the organisation work harder,
stay longer, and motivate others to do the same. We believe engaged and well-trained employees create and deliver
better products and services, and thus, contribute to the improvement of the Group’s business performance and results.
Employee engagement is critical in driving every important aspect of our organisation, including profitability, revenue,
customer experience, employee retention, and more. Our Group Human Resources (“HR”) function takes ownership of
employee engagement initiatives and holds teams accountable.
Furthermore, we invest in comprehensive employee training programs to foster continuous growth and development.
These initiatives aim to enhance the knowledge and skills of our workforce, keeping us agile and adaptable to industry
dynamics. By enhancing the productivity of our employees, we strive to improve the efficiency and financial performance
of the organisation.
As part of our commitment to sustained growth, we regularly evaluate our strategic talent management processes.
This enables us to attract top-tier talent from the market and fill critical roles to advance our operations seamlessly.
Additionally, it helps alleviate the workload for our employees, mitigating the risk of exhaustion and burnout.
Overall, Kelington’s dedication to nurturing talent and fostering a supportive work culture underscores our commitment
to excellence and sustainable growth.
Employee turnover rate
The turnover rate for Y2023 stands at 18.1%, with 115 permanent employees resigning out of total permanent workforce
of 635 individuals. This increase in staff turnover rate within Kelington Group was primarily attributed to the operational
adjustments made in Singapore, where the emphasis was placed on enhancing productivity. Throughout the year, a total
of 52 staff in Singapore resigned, while 8 new hires were brought onboard.
We recognise that turnover can have various underlying causes, ranging from career advancement opportunities to
workplace culture and management effectiveness. Moving forward, we remain committed to addressing the factors
contributing to turnover and implementing strategies aimed at enhancing employee engagement, satisfaction, and
retention.
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Annual Report 2023
We keep employee engaged, motivated, productive and happy

in a diverse workforce
Great managers create engaged employees
At Kelington, we encourage two-way communication where employees feel comfortable sharing their ideas, concerns,
and feedback. We regularly review and implement suggestions that are deemed feasible and beneficial. This approach
ensures that employees feel valued and empowered, as their contributions are taken seriously by the company. As a
result, we see a boost in employee morale and job satisfaction, as they witness their ideas making a tangible impact on
the organisation’s success.
We prioritise employee growth and development by offering regular performance evaluations. These evaluations help
identify strengths and areas for improvement, fostering excellence in roles. Additionally, we facilitate ongoing dialogue
between managers and employees to ensure continuous improvement and goal setting.
Positive Work Environment
At Kelington, we are dedicated to cultivating a culture deeply rooted in Diversity, Equity, and Inclusion (DEI), recognising
and cherishing the diverse backgrounds, perspectives, and contributions of each member within our organisation. In
line with our commitment to DEI principles, In FY2023, we organised a series of activities to bring together our diverse
workforce and create an inclusive environment where everyone feels valued, respected, and empowered to thrive.
At Kelington, we believe that diversity is our strength, and unity is our power. That’s why we are thrilled to share that
our annual dinner is not just a celebration of another successful year – it’s a vibrant showcase of the rich tapestry of
cultures, backgrounds, and talents that make up our incredible workforce!
89
At Kelington, we’re committed to fostering a culture of camaraderie, appreciation, and fun. What better way to
celebrate our team’s hard work and dedication than by indulging in one of nature’s most unique and beloved fruits –
the durian! This Durian Festival isn’t just about savoring delicious fruit – it’s about coming together as a team, creating
lasting memories, and celebrating the unique flavors that make our workplace special.
At Kelington, our festival celebrations are much more than just moments of joy and merriment – they’re powerful
reminders of the rich tapestry of cultures, traditions, and beliefs that make our workplace thrive!
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Annual Report 2023
Our monthly birthday celebrations are more than just a party – they’re an opportunity to strengthen bonds, foster a
sense of belonging, and make each member of our team feel valued and appreciated.
Employee Benefits
At Kelington, we offer a comprehensive range of employee benefits designed to support our employees in achieving
their best work-life balance and professional growth. Engineers on site or outstation enjoy various employee benefits
tailored to their needs and roles such as provision for hostel and meal allowances, as well as transport arrangement.
We provide insurance coverage and and out-patient medical coverage to ensure our employees have access to the
care they need, promoting their health and well-being. We go beyond mere compliance by providing extensive benefits,
including generous annual leave, participation in Employee Share Scheme, and performance-based bonuses.
For instance, our Group recorded a higher bonus awarded to our employees in FY2023 of RM23.0 million. This initiative
not only recognises the hard work and dedication of our team members but also aligns their interests with the success
and growth of Kelington Group. By providing these incentives and opportunities for financial participation, we aim to
foster a culture of excellence, loyalty, and mutual success within our workforce.
Work-life balance
At Kelington, we prioritise the well-being of our employees by advocating for a healthy work-life balance through the
provision of flexible work arrangements. We encourage our team members to embrace regular breaks and utilise their
vacation time. By fostering an environment that values personal time and rejuvenation, we empower our team members
to achieve optimal performance while maintaining harmony between their professional and personal lives.
At Kelington, we believe in the power of exploration, adventure, and creating unforgettable memories. Our company
trip is more than just a vacation – it’s a testament to our commitment to fostering a culture of teamwork, appreciation,
and adventure. By investing in experiences that bring us closer together, we strengthen our bonds, boost morale, and
inspire creativity and collaboration in the workplace.
91
Opportunities for Growth and Development
At Kelington, we are committed to facilitating the growth and development of our employees by providing robust avenues
for enhancing their skills, knowledge, and career paths. Through a variety of tailored training programs, engaging
workshops, and enriching mentorship opportunities, we empower our team members to expand their expertise and
reach their full potential. By investing in our employees’ development, we not only strengthen our workforce but also
foster a culture of continuous learning and advancement within our organisation.
In FY2023, our Group’s training expenses totalled at RM450,000. All employees received at least one training in FY2023.
In total, our employees completed more than 200 training sessions via online and offline channels. During the year, the
Group clocked in a total of 11,686 training hours, translating to an average of 15.5 training hours for each employee.
Total Hour(s) of Training by Total Investment

Employee Category in Training
11,685.5
Total Hour of Training FY2023
4,691.5
RM450,000
Operators/Technicians/
Non Executive
5,293.5
FY2022
Executive/Engineer
RM426,000
1,563.5
Middle Management
FY2023
137 FY2021
RM161,000
FY2022
Senior Management
FY2021
0 2,000 4,000 6,000 8,000 10,000 12,000
Recognition and Rewards
Recognition is a key part of our approach to retain talent. At Kelington, we have incorporated recognition into our
culture, making peer-to-peer, team, manager, and leadership recognition a regular occurrence. Important milestones
and personal achievements on and off-the-job are celebrated and appreciated on a frequent basis. These include
reaching a goal, completing a project, learning a new skill, collaborating well with a teammate and hitting a quota, to
name a few. Rewards can be monetary (additional bonuses) or non-monetary (public recognition, extra time off, career
development opportunities etc).
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Annual Report 2023
We celebrate milestones and recognising the dedication of our exceptional long-serving employees. We are proud
and honoured to be entrusted by our employees who have a true sense of loyalty and commitment to the Group. Their
unwavering resilience and dedication have driven the Group to where it is at today. In this regard, they have been
instrumental in propelling Kelington to navigate and prosper beyond setbacks, enabling us to grow from strength to
strength from each of these challenges.
Wellness initiatives
At Kelington, we are deeply committed to the well-being of our employees, recognising that physical, mental, and
emotional health are essential for overall happiness and productivity. We ensure all employees have equal access and
opportunities to participate, regardless of their individual circumstances. To uphold this commitment, we prioritise equity
in every aspect of our event planning and proactively remove barriers that may hinder participation.
We understand the importance of fostering connections beyond office hours. That’s why our bowling games and
Escape Park adventures offer more than just fun – they’re opportunities for our employees to come together, socialise,
and build lasting connections in a relaxed environment.
93
Employee Productivity
VALUE ADDED PER EMPLOYEE
With the implementation of our talent development
programs, we strive to bolster our employees’ efficiencies
to create a high performing workplace. To measure Engineering Industrial Gases
employee productivity, we use the value-added per RM ‘000
employee as a performance indicator. The data mainly
serves for inter-firm evaluation and for comparison against 300 278.4
a benchmark for the industry as a whole. 249.5
250
In FY2023, the Engineering division witnessed a remarkable 200

86% improvement in value added per employee, reaching 154.2
RM154,151 per employee. This significant enhancement 150 121.6
can be primarily attributed to optimised resource allocation 78.8 82.9
and the pursuit of high-value projects. In contrast, our 100
industrial gas division experienced a 10.4% decline in
50
value added per employee, primarily due to increased
headcounts and administration costs resulting from 0
business expansion. The value added per employee was
calculated by dividing the business’s profit after tax (PAT) 2021 2022 2023
by its total number of employees.
SI
7 Diverse and Inclusive Workplace
Target:
FY2024 Progress:
Female representative in total workforce (Executive level & above) 30% FY2023
Female representative in total

Female director on Board 30% workforce (Executive level &
above)
28.6%
Base Year: Female director on Board

FY2020 20%
Female representative in total workforce (Executive level & above) 22%
Female director on Board 10%
Kelington holds tightly the belief that employees are our most valuable asset and the key to growing a sustainable
business is via employee empowerment. Therefore, we continue to promote and espouse diversity, non-discrimination,
fair treatment and equal opportunity among our people to create a healthy, secured and motivated workforce by
cultivating an inclusive organisational culture.
Kelington’s Diversity, Equity and Inclusion Policy was updated in February 2023. KGB’s diversity initiatives are applicable
but not limited to our practices and policies on recruitment and selection; compensation and benefits; professional
development and training; promotions; transfers; social and recreational programs; layoffs; terminations; and the ongoing
development of work environment. Employees who believe they have been subjected to any kind of discrimination
that conflicts with the company’s Diversity, Equity and Inclusion policy may seek assistance from a supervisor, an HR
representative or through the Grievance Process available. Employees who do not comply with the Policy and/or are
found to have engaged in discrimination, harassment or bullying, will be subject to appropriate disciplinary action, up
to and including termination of employment.
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Annual Report 2023
Detailed analysis of KGB’s workforce is tabulated as below:-
Unit of
measure FY2021 FY2022 FY2023
No. of employee by employment type

Full Time Employees Number 417 85% 568 83% 635 84%
Contract Staff / Workers Number 75 15% 113 17% 121 16%
Total Workforce Number 492 100% 681 100% 756 100%
No. of full time employees resigned during
the year Number 56 110 115
Permanent Employee Turnover Rate % 11.84 16.22 18.11
Total number of employee turnover by

employee category
Senior Management Number 0 1 0
Middle management Number 3 2 2
Engineers/ Executive Number 17 43 52
Operators/Technicians/ Non Executive Number 36 64 61
Employee Turnover Rate by geography

Malaysia % 9 11 7
Singapore % 18 16 26
China % 8 24 20
Taiwan % 11 0 0
No. of employee with disability Number 0 0 0
No. of employee by gender

Male Number 380 77% 519 76% 578 76%
Female Number 112 23% 162 24% 178 24%
No. of Female Employees by category

Senior management % 11 11 11
Middle management % 16 20 19
Engineers/ Executive % 29 31 33
Operators/Technicians/ Non Executive % 18 19 18
Local Employment Rate

Employees who are Local (Malaysian) % 59 60 61
No of employees who are foreigner
(non Malaysian) % 41 40 39
95
Others 6% Over 50
years old
Indian 6% 6% Under 30
years old
40%
FY2023 FY2023
Employee by Employee by
Ethnicity Age Group
Malay 25%
30-50
years old
54%
Chinese 63%
over 50
years old
Female 1% Under 30
33% years old
63%
FY2023 FY2023
Employee New hiring by
Executive Level Age Category
by Gender
30-50
Male years old
67% 36%
• 63% of our workforce is of Chinese ethnicity, and 25% are Malay, showcasing the diversity of our talent pool.
• Kelington Group exhibits a diverse age demographic among its employees, with a majority falling between
the ages of 30 and 50, and a significant portion being under 30 years old. This balance of experienced
professionals and younger talent contributes to a dynamic and innovative work environment.
• At the executive level, our company boasts a workforce where women make up 33% of the team.
• We focus on hiring employees under 30 years old as part of our commitment to supporting youth. This
helps empower the next generation, tackle youth unemployment, promote diversity, develop talent, and
build sustainable communities. Our strategy aligns with government efforts to boost youth employment and
demonstrates our commitment to social responsibility and economic development.
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Annual Report 2023
Percentage of employees by age group and Unit of

employee category measure FY2021 FY2022 FY2023
Senior Management
Under 30 % 0.00 0.00 0.00
Between 30-50 % 55.56 52.38 52.60
Above 50 % 44.44 47.62 47.40
Middle Management
Under 30 % 6.45 5.68 8.30
Between 30-50 % 85.48 80.68 84.40
Above 50 % 8.07 13.64 7.30
Engineer/ Executive
Under 30 % 53.87 56.89 52.20
Between 30-50 % 43.10 40.64 45.00
Above 50 % 3.03 2.47 2.80
Non-executive/ Technical Staff

Under 30 % 33.71 35.98 41.70
Between 30-50 % 57.14 58.48 54.70
Above 50 % 9.15 5.54 3.60
Percentage of employees by gender and

employee category
Senior Management
Male % 88.89 90.48 89
Female % 11.11 9.52 11
Middle Management
Male % 83.87 79.55 81
Female % 16.13 20.45 19
Engineer/ Executive
Male % 70.69 69.26 67
Female % 29.31 30.74 33
Non-executive/ Technical Staff

Male % 81.71 80.62 82
Female % 18.29 19.38 18
SI
8 Respect Human Rights
Base Year: Target: Progress:

FY2020 FY2024 FY2023
0 Number of Achieve zero incidents of unfair harassment, bullying and/or 0 Number of

Incidents. unlawful discrimination practices including gender-based violence, Incidents.
sexual harassment, sexual abuse, corporal punishment, mental
or physical coercion, bullying, public shaming, or verbal abuse of
worker, etc
100% Committed to enforced zero tolerance approach to any child labour 100%
Compliance and/or modern slavery and/or forced labour of any kind within Compliance
Kelington Group’s operations.
100% Committed compliance and meet and/or exceed the minimum 100%
Compliance wage / meet living wage in each country of operations. Compliance
97
Human rights are the fundamental rights and freedoms of every individual. These basic rights are based on the principles
of dignity, fairness, respect and equality. In recent years, human rights initiatives in the corporate sector have become
increasingly important. We recognise the need for human rights initiatives not only within Kelington, but also across the
entire supply chain.
In FY2021, we formulated a Human Rights Policy to clarify our approach to human rights matters as the basis for
initiatives in this area. In accordance with our Human Rights Policy, Kelington will respect human rights in our activities
as an organisation. We also aim to promote respect for the human rights of all stakeholders connected to our activities
in collaboration with our business partners. As such, we are committed to treating people with dignity and respect in our
workplace, to provide equal opportunity to all and have zero tolerance on child & forced labour.
Human Rights management
The Board of Kelington is responsible for overseeing the adherence to the Human Rights Policy, while the Executive
Management Committee makes material decisions regarding the execution of the policy. The Group-wide Sustainability
Working Group shall work together to address key challenges in the areas of discrimination, working hours, low wages
and allowances, occupational health and safety risks, sexual harassment and maternal health, labour compliance by
the Ministry of Labour and industrial zone authorities.
In our daily dealings, we are guided by the core principles as expressed in the Universal Declaration for Human
Rights and the United Nations Guiding Principles on Business and Human Rights. The Group’s Respect Human Rights
Framework includes three focus areas to implement our strategy in protecting human rights.
Policies Audits Actions
Kelington emphasises respect Our Human Rights Working When human rights impacts
for human rights in our Code Committee conduct assessments are identified, Human Rights
of Ethics and Conduct. Our and audits at our operating sites, Working Committee would draft
Human Rights Policy, Diversity, as well as our business activities out the relevant action plan
Equity and Inclusion Policy and to identify important and salient for Executive Management’s
Responsible Supply Chain Policy human rights impacts. approval. Resources would then
lay out clearly the approaches we Our Sustainable Supply Chain be allocated for remedial actions.
adopt to respect and protect the Working Group engages with our The execution of remedial
human rights of our employees suppliers and subcontractors to action plan shall be carried
and stakeholders, covering areas create awareness on Kelington’s out by respective Business
from diversity and inclusion, expectations. We evaluate Units. Kelington’s Executive
child labour, forced labour, and prioritise the findings from Directors report to the Board/Risk
health, sexual harassment and the audits, understand their Management Committee on ESG
community rights at the locations challenges in complying to our risks management, at least once
where we conduct our business guiding principles and form action a year.
activities. Our policies are plans to manage the compliance
reviewed regularly to ensure they risk.
remain effective at all times.
Contact Points for the general public and other stakeholders
Grievance Procedures was established for employees and workers to raise their grievance in matters involving work
relations and conditions directly via email / grievance procedure hotline / submission of letter to Kelington’s Headquarter
or the Group’s subsidiaries. In addition, the Grievance Procedures can also be utilised as a mechanism for the member
of the public to raise any concern or complaint in their dealing with or in relation to Kelington.
In FY2023, Kelington did not have any reported incident of human rights violation, with no fine pertaining to human rights
violation from the local authorities of where we operate.
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Annual Report 2023
Improve access to
Education for
Underprivileged
We Care for Society
SI
10 Community Investment
Target:
FY2024
Expanding the reach of CSR initiatives guided by our Community Investment

Policy.
Progress:
FY2023
3/4 Operational Locations engage

in local community activities.
Base Year:
FY2021
2/4 Operational Locations engage in local community activities.
As part of the Company’s Corporate Commitment, Kelington supports local community growth and serve the needs
of the community through various corporate social responsibility (“CSR”) initiatives. We are committed to working with
NGOs and the local communities in devising programmes that contribute both directly and indirectly to create a positive
business environment whilst improving the quality of life among local communities.
On top of supporting local suppliers and hiring of local employees, Kelington also allocates corporate contributions for
local communities, focusing on the underprivileged, education and environment. We continued to perform several core
programmes involving education and providing financial assistance to underprivileged children.
99
In FY2023, the total spending on community program and environmental conservation are recorded at RM125,135. After
regular scanning on Kelington’s operating environment, the Sustainability Working Group would identify the social and
environmental challenges and arrange meaningful CSR program that aligns with our community investment policy and
priorities, addressing pressing social or environmental issues and create positive impact on our stakeholders and the
communities where we operate. The local community programs conducted in FY2023 are as follows:-
Restore our amazing rainforest
Through the “ROAR Initiative” program,

coordinated by APE Malaysia (Animal
Projects & Environmental Education
Sdn Bhd), Kelington contributes to
the restoration of vital forest corridors
that have suffered degradation due
to deforestation. In FY2023, our
participation in the ROAR program led
to the planting of 200 trees at Lower
Kinabatangan Wildlife Sanctuary.
Promoting Recycling practices in our Workplace
At Kelington Group Berhad, we prioritise the promotion of sustainable behaviors among our staff to mitigate our
environmental impact and contribute to a greener future. As part of our environmental stewardship commitment, we
actively encourage office-wide recycling initiatives.
To foster recycling practices, we have implemented several initiatives:
√ Installation of recycling bins strategically placed throughout our office premises for convenient segregation of
recyclable materials like paper, plastic, glass, and metal.
√ Provide E-waste Collection Box at Kelington HQ, aimed to educate and raise awareness among employees on the
appropriate disposal process of e-waste. All the collected e-waste during this programme was sent to licensed
and DOE-registered e-waste recyclers for proper discard.
√ Collaborating with a reputable recycling company for responsible disposal and processing of collected recyclable
materials, ensuring minimal waste and maximum resource efficiency.
Our dedication to promoting recycling practices among staff exemplifies Kelington Group Berhad’s commitment to
environmental sustainability and corporate social responsibility. Through these efforts, we aim to instill a culture of
sustainability within our organisation and contribute positively to the environment.
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Annual Report 2023
Project Sambung Sekolah
“Project Sambung Sekolah” is a collaborative endeavor spearheaded by the Haematology Department of Hospital
Ampang, in conjunction with The Max Foundation and Max Family Society Malaysia. The initiative aims to alleviate the
educational burdens of economically disadvantaged children affected by chronic illnesses by offering financial aid for
their schooling expenses.
For the third consecutive year, Kelington Group Berhad has continued its steadfast support for “Project Sambung
Sekolah” through our CSR endeavors. Our sustained financial backing has enabled five deserving children to pursue
their education, thereby easing the financial strain on their families.
Our ongoing involvement with “Project Sambung Sekolah” has brought about tangible improvements in the lives of the
children and their families, providing them with access to education, financial relief, and a sense of empowerment. By
instilling hope and demonstrating that their aspirations are attainable despite adversity, we are making a meaningful
impact on their lives.
Kelington Group Berhad’s enduring support for “Project Sambung Sekolah” underscores our commitment to effecting
positive change in the community. Through our continued partnership with this initiative, we aim to create avenues for
underprivileged children to access education and unlock their full potential, aligning with our broader CSR objectives.
Donation to Lion Befrienders Service Association
Kelington’s operation in Singapore reaffirms its commitment

to corporate social responsibility (CSR) through a significant
donation of SGD25,000 to Lions Befrienders Service Association.
Lions Befrienders aims to provide friendship and care to over
11,000 seniors in need, striving to enhance their lives by offering
companionship, support, and a sense of belonging.
This contribution underscores our commitment to making a positive

impact on the lives of others, especially vulnerable seniors facing
social isolation and other challenges. By partnering with Lions
Befrienders, we endeavor to address these issues by connecting
seniors with vital services, resources, and social networks, thereby
fostering a greater sense of community and belonging. Kelington
Singapore’s support for Lions Befrienders exemplifies our ongoing
dedication to initiatives that promote social inclusion and well-
being among Singapore’s elderly population.
Through our CSR efforts, we aim to create meaningful change

in the lives of seniors and contribute to the cultivation of a more
compassionate and caring society.
101
Core Liver baby Program - Help poor children undergo liver transplant at Renji Hospital.
Kelington Shanghai remains

steadfast in its commitment to
corporate social responsibility by
continuing its support for the “Core
Liver Baby Program,” spearheaded
by the China Soong Ching Ling
Foundation.
This initiative aims to facilitate life-

saving liver transplantation surgeries
for children in need at Renji
Hospital, offering them the chance
for improved health and a brighter
future.
Kelington Shanghai proudly donated RMB 50,000 to bolster the “Core Liver Baby Program,” reflecting our dedication to
enhancing the well-being of underprivileged children and making a positive impact in the community.
Visiting Orphanage – Provide children with enough love and care
Orphanage homes serve as vital sanctuaries, offering essential care, shelter, and support to children facing adversity due
to the loss of parental care or vulnerable circumstances. Recognising the pivotal role these institutions play, Kelington
Group Berhad initiated a visit to Rumah Amal Kasih Bestari, a nurturing home situated in Kampung Melayu Subang, to
engage with the children and contribute to their well-being.
During the visit, Kelington demonstrated its commitment to supporting the orphanage by generously donating gently
used hydraulic chairs along with new bedsheets and blankets. This act of kindness directly impacted approximately 148
children aged 1 to 17 years old, providing them with the comfort and support they deserve.
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Annual Report 2023
Internship Placement
Kelington Group Berhad is dedicated to providing young talent with valuable opportunities to gain practical experience
and develop essential skills in their chosen fields.
Our internship program offers students the chance to acquire technical knowledge and hands-on experience within
their desired industry. Under the guidance of professionals, interns apply classroom theory to real-world projects and
challenges, enhancing their skill sets and industry understanding.
Kelington Group Berhad’s internship program has grown significantly, offering numerous students the chance to learn
and grow within our organisation.
The program’s positive impact is evident in both interns and the organisation. It bridges the gap between academic
learning and practical application, equipping interns for successful careers. Additionally, the program injects fresh
perspectives, innovative ideas, and energy into our organisation, contributing to our overall success and growth.
Kelington Group Berhad’s internship program exemplifies our commitment to talent development, education support,
and the cultivation of future professionals. Through hands-on experience, mentorship, and skill development, we
empower interns to excel and make meaningful contributions to their chosen fields.
The internship placement in Kelington from year 2019 – 2023 is tabulated as below.
Malaysia Singapore China Taiwan Total
2019 2 2 1 0 5
2020 2 0 3 0 5
2021 4 0 9 0 13
2022 10 6 6 0 22
2023 10 7 3 0 20
Total 28 15 22 0 65
103
PERFORMANCE DATA TABLE

FROM ESG REPORTING PLATFORM
Measurement
Indicator Unit 2021 2022 2023
Bursa (Emissions management)
Bursa C11(a) Scope 1 emissions in tonnes of CO2e Metric tonnes 10,688.00 11,173.00 12,495.00
Bursa C11(b) Scope 2 emissions in tonnes of CO2e Metric tonnes 2,270.00 3,004.00 3,807.00
Bursa C11(c) Scope 3 emissions in tonnes of CO2e Metric tonnes 5,470.00 33,605.00 24,137.00
(at least for the categories of business travel and
employee commuting)
Disclosure of three years of Nitrous Oxides (NOx) Metric tonnes 0.00 0.00 0.00
emissions (tonnes)
Disclosure of three years of Sulphur Oxide (SOx) Metric tonnes 0.00 0.00 0.00
emissions (tonnes)
Disclosure of three years of Volatile Organic Kilograms 0.00 0.00 0.00
Compounds (VOCs) emissions (kilograms)
CO2 Equivalent Intensity Ratio tCO2-e 1,252.00 763.00 492.00
Bursa (Waste management)
Bursa C10(a) Total waste generated Metric tonnes 200.00 717.00 422.00
Bursa C10(a)(i) Total waste diverted from disposal Metric tonnes 39.00 61.00 47.00
Bursa C10(a)(ii) Total waste directed to disposal Metric tonnes 161.00 656.00 375.00
Disclosure of three years of hazardous waste Metric tonnes 27.00 38.00 33.00
generation (tonnes)
Disclosure of three years of non-recycled waste Metric tonnes 161.00 656.00 375.00
generation (tonnes)
Disclosure of three years of waste recycled (tonnes) Metric tonnes 39.00 61.00 47.00
Total costs of environmental fines and penalties during MYR 0.00 0.00 0.00
financial year
Percentage of sites covered by recognized Percentage 97.00 97.00 98.00
environmental management systems such as
ISO14001 or EMAS
Waste Gas Reuse (Carbon Dioxide) Metric tonnes 47,599.00 60,471.00 70,278.00
Non-Recycled Waste Intensity Ratio Metric tonnes 4.60 10.50 3.40
Bursa (Energy management)
Bursa C4(a) Total energy consumption Megawatt 9,735.00 12,887.00 16,329.00
Electricity Intensity Ratio Megawatt 906.00 664.00 452.00
Solar Power Generated Megawatt 18.56 11.24 13.91
Bursa (Water)
Bursa C9(a) Total volume of water used Megalitres 25.730000 31.241000 76.813000
Does the company disclose the number of incidents of Number 0 0 0
non-compliance with water quality/quantity permits,
standards and regulations
Three years of total water discharge data is disclosed Cubic meters 0.00 0.00 0.00
by destination - Ocean
Three years of total water discharge data is disclosed Cubic meters 25,730.00 31,241.00 76,813.00
by destination - Surface water
by destination - Subsurface / well
by destination - Off-site water treatment
by destination - Beneficial / other use
Internal assurance External assurance No assurance (*)Restated
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Annual Report 2023

Measurement
Bursa (Water)
Three years of total water discharge data is disclosed Cubic meters 25,730.00 31,241.00 76,813.00
by destination - Total
Three years of total water withdrawal data is disclosed Cubic meters 0.00 0.00 0.00
by source - Surface water from rivers, lakes, natural
ponds
by source - Groundwater from wells, boreholes
by source - Used quarry water collected in the
quarry
Three years of total water withdrawal data is disclosed Cubic meters 25,730.00 31,241.00 76,813.00
by source - Municipal potable water
by source - External wastewater
by source - Harvested rainwater
by source - Sea water, water extracted from the sea
or the ocean
Three years of total water withdrawal data is disclosed Cubic meters 25,730.00 31,241.00 76,813.00
by source - Total
Water Intensity Ratio Cubic meters 2,395.00 1,508.00 1,153.00
Bursa (Supply chain management)
Bursa C7(a) Proportion of spending on local suppliers Percentage 83.00 76.00 83.00
Bursa (Anti-corruption)
Bursa C1(a) Percentage of employees who have
received training on anti-corruption by employee
category
Senior Management Percentage 100.00 100.00 100.00
Middle Management Percentage 100.00 100.00 100.00
Executive Percentage 100.00 100.00 100.00
Non-executive/Technical Staff Percentage 100.00 100.00 100.00
Bursa C1(b) Percentage of operations assessed for Percentage 100.00 100.00 100.00
corruption-related risks
Bursa C1(c) Confirmed incidents of corruption and Number 0 0 0
action taken
Disclosure of total amount of political contributions MYR 0.00 0.00 0.00
made
Disclosure of number of staff disciplined or dismissed Number 0 0 0
due to non-compliance with anti-corruption policy/
policies
Disclosure of cost of fines, penalties or settlements in MYR 0.00 0.00 0.00
relation to corruption
105

Measurement
Corporate Governance
Number of Board Directors Number 10 10 10
Number of independent Directors on the board Number 5 5 5
Number of women on the board Number 1 1 2
Annual General Meeting: Number of days between the Number 32 54 52
date of notice and date of meeting
Percentage of women on the Executive committee or Percentage 0.00 0.00 0.00
equivalent.
Number of fines/settlements over the previous 3 years Number 0 0 0
where each is valued > US $100 million
Combined total value of fines/settlements over the MYR 0.00 0.00 0.00
previous 3 years where each is valued > US $100
million
Customer Satisfaction Rate Percentage 91.00 91.00 88.00
Bursa (Data privacy and security)
Bursa C8(a) Number of substantiated complaints Number 0 0 0
concerning breaches of customer privacy and losses
of customer data
Bursa (Health and safety)
Bursa C5(a) Number of work-related fatalities Number 0 0 0
Bursa C5(b) Lost time incident rate ("LTIR") Rate 0.00 0.00 0.09
Bursa C5(c) Number of employees trained on health and Number 492 389 326
safety standards
Percentage of sites with OHSAS 18001 certification Percentage 91.00 91.00 92.00
Number of work-related employee fatalities, over last 3 Number 0 0 0
years
Number of work-related contractor fatalities, over last 3 Number 0 0 0
years
Total Recordable Injury Frequency Rate (TRIFR) Rate 1.08 0.75 0.72
Bursa (Labour practices and standards)
Bursa C6(a) Total hours of training by employee
category
Senior Management Hours 207 193 137
Middle Management Hours 1,013 1,366 1,564
Executive Hours 4,320 5,803 5,293
Non-executive/Technical Staff Hours 1,470 2,888 4,692
Bursa C6(b) Percentage of employees that are Percentage 15.24 16.59 16.00
contractors or temporary staff
Bursa C6(c) Total number of employee turnover by
employee category
Senior Management Number 0 1 0
Middle Management Number 3 2 2
Executive Number 17 43 52
Non-executive/Technical Staff Number 36 64 61
Bursa C6(d) Number of substantiated complaints Number 0 0 0
concerning human rights violations
Average Training hours per employee Hours 14 15 16
Total investment in training MYR 161,000.00 426,000.00 450,000.00
Number of incident of unfair employment practices Number 0 0 0
Employee Turnover Rate Percentage 11.84 16.22 18.11
106
Annual Report 2023

Measurement
Bursa (Diversity)
Bursa C3(a) Percentage of employees by gender and
age group, for each employee category
Age Group by Employee Category
Senior Management Under 30 Percentage 0.00 0.00 0.00
Senior Management Between 30-50 Percentage 55.60 52.40 52.60
Senior Management Above 50 Percentage 44.40 47.60 47.40
Middle Management Under 30 Percentage 6.50 5.70 8.30
Middle Management Between 30-50 Percentage 85.50 80.70 84.40
Middle Management Above 50 Percentage 8.00 13.60 7.30
Executive Under 30 Percentage 53.90 56.90 52.20
Executive Between 30-50 Percentage 43.10 40.60 45.00
Executive Above 50 Percentage 3.00 2.50 2.80
Non-executive/Technical Staff Under 30 Percentage 33.70 36.00 41.70
Non-executive/Technical Staff Between 30-50 Percentage 57.10 58.50 54.70
Non-executive/Technical Staff Above 50 Percentage 9.20 5.50 3.60
Gender Group by Employee Category
Senior Management Male Percentage 88.90 90.50 89.00
Senior Management Female Percentage 11.10 9.50 11.00
Middle Management Male Percentage 83.90 79.50 81.00
Middle Management Female Percentage 16.10 20.50 19.00
Executive Male Percentage 70.70 69.30 67.00
Executive Female Percentage 29.30 30.70 33.00
Non-executive/Technical Staff Male Percentage 81.70 80.60 82.00
Non-executive/Technical Staff Female Percentage 18.30 19.40 18.00
Bursa C3(b) Percentage of directors by gender and age
group
Male Percentage 90.00 90.00 80.00
Female Percentage 10.00 10.00 20.00
Under 30 Percentage 0.00 0.00 0.00
Between 30-50 Percentage 0.00 0.00 0.00
Above 50 Percentage 100.00 100.00 100.00
Percentage of global staff with a disability. Percentage 0.00 0.00 0.00
Percentage of women in the global workforce. Percentage 22.80 23.80 23.50
Bursa (Community/Society)
Bursa C2(a) Total amount invested in the community MYR 85,000.00 43,085.00 125,135.00
where the target beneficiaries are external to the listed
issuer
Bursa C2(b) Total number of beneficiaries of the Number 5 5 5
investment in communities
Internal assurance External assurance No assurance (*) Restated
107

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INSIDE THIS REPORT

VALUE CREATION 8-15

MANAGEMENT DISCUSSION AND ANALYSIS 16-23

FINANCIAL STATEMENTS 172-280 Meeting Platform:

Scan the QR code to

To be a sustainable, leading and well-diversified

of Engineering high-technology Company in the Asia Pacific

Excellence OUR MISSION

At Kelington Group Berhad, Cultivate KGB as a profitable organisation that

RM1.6 BILLION RM1.4 BILLION

We Serve Semiconductor players, Electronic manufacturers, Resellers,

FINANCIAL YEAR ENDED 31 DECEMBER

Revenue (RM’000) 379,768 394,599 514,554 1,278,837 1,614,449

Profit Before Taxation (RM’000) 31,579 20,945 35,694 74,391 133,903

Profit After Taxation (RM’000) 23,920 17,591 29,700 58,506 106,018

Shareholders’ Funds (RM’000) 155,534 168,329 192,747 243,115 338,392

Total Assets (RM’000) 303,055 350,343 403,968 1,055,641 1,071,328

Dividend per share (RM’Cent) 2 1.5 1.5 2.5 4.0

Share Price (RM)*^ 0.61 0.831 1.72 1.37 2.17

Market Capitalisation (RM’000)#^ 378,614 534,339 1,105,972 880,920 1,399,209

^ As at the last trading day of the financial year.

REVENUE PROFIT BEFORE TAXATION

PROFIT AFTER TAXATION SHAREHOLDERS’ FUNDS

TOTAL ASSETS SHARE PRICE

Incorporation Secured a large value contract to

Incorporated subsidiary Secured the largest gas hook-up

Set up Secured our FIRST chemical Secured a landmark

Kelington Group Berhad

Kelington Technologies (Sarawak)

Puritec Technologies (M) Sdn. Bhd.

Kelington Engineering (S) Pte. Ltd. Kelington Solomon Philippines, Inc.

Kelington Engineering (HK) Limited

Kelington Engineering (Germany) GmbH

Kelington Trading (Shanghai) Co., Ltd

Ace Gases Sdn. Bhd. Ace Gases Marketing Sdn. Bhd.

Ace Gases Marketing (S) Pte. Ltd

Kelington Analytical Services Cryotech Logistics Sdn. Bhd.

Kelington Nawik Sdn. Bhd.

OUR BUSINESS MODEL

• Shareholder’s Equity RM338.4 million

• RM168.8 million worth of properties

• 24 years of industry experience. INPUTS BUSINESS OUTPUTS DELIVERING

Vision & Mission

N NATURAL CAPITAL Managing Impact

OUR BUSINESS MODEL

VALUE DELIVERED TO OUR STAKEHOLDERS AND THE ENVIRONMENT

SHAREHOLDERS • Financial performance & • Dividend payment

ENVIRONMENT • Strive to lower carbon emissions and waste in our operations.

CUSTOMERS • Offer customisable solutions tailored to the specific needs of

EMPLOYEES • Competitive Compensation.

COMMUNITIES • Engaging employees in corporate social responsibility initiatives.

VENDORS • Increased innovation via collaboration and synergy.

FINANCIAL • Commitment to build a resilient and profitable business.

GOVERNMENT / • Contribute to economic growth and contribute to increased tax

Engagement KGB's Response

Material Matters Concerned: Capital:

SI Pollution & Waste Management • Contribute to KGB’s H

SI Respect Human Rights

SI Quality Products & Services