CORPORATE COMMUNITY INVESTMENT REPORT

MALAKOFF CORPORATION BERHADLevel 12, Block 3B, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur

Tel: +603 2263 3388 • Fax: +603 2263 3333

2009CORPORATECOMMUNITY INVESTMENTREPORT

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cover_002.pdf 1 8/29/10 11:16 PM

1The Malakof f Communi ty Par tnersh ips

Introduction 2

MessagefromtheChairman 4

TheMalakoffCommunityPartnerships 6

CommitmenttoCommunitySports i. Malakoff26km,Penang2009 14 ii. MalakoffUniversityDuathlonSeries 18 iii. PowermanMalaysia 22 iv. Malakoff12km,KualaLumpur2009 26 v. MalakoffInterstateFellowshipRide 30

CommitmenttoCommunity&Education i. MalakoffAnnualCharityRide 34 ii. AdoptedSchoolsEducationTrip 38 iii. EducationFund 40 iv. GotongRoyongatAdoptedCharityHomes 42 v. EmpowerforLife 44CommitmenttoTheEnvironment i. MalakoffMangroveInitiative 48 ii. GreenSchoolCampaign 50

ListeningtoStakeholders 52

MalakoffinNews 54

GoingForward 66


INTRODUCTION

Malakoff is strongly committed to the belief that how a Company engages with its stakeholders and how it conducts its business is imperative to the success of an organization. From the time of inception in 1975, the Company has taken proactive measures to integrate CSR into every aspect of its business strategy.

While recognising that the path to becoming a responsible corporation is an ongoing endeavour, Malakoff has consistently undertaken concrete programmes to play its part in a wide range of areas that include development of Malaysian technical expertise, facilitation of community development, inculcating competitive spirit as well as conserving the environment.

As part of Malakoff’s efforts to retain this as a fundamental part of the way we operate and to

further strengthen our commitment to CSR, the Malakoff Community Partnerships was established in 2009 as the Company’s flagship CSR platform.

The Malakoff Community Partnerships celebrates the past achievements of Malakoff’s CSR activities, while reinforcing the Company’s long-term commitment to being a responsible and active participant of the community. Malakoff achieves this through a three-pronged approach:

• Commitment to Community Sports• Commitment to Community & Education• Commitment to the Environment

While Malakoff is actively involved in the community, it clearly recognises the needs of its employees too. Malakoff has been continuously investing in its people since inception and in 2009 alone, the


“Corporate Social Responsibility is the continuing commitment by

businesses to behaveethically and contribute to economic development of

the local communities.”LordHolmeandRichardWatts

Making Good Business Sense(World Business Council for

Sustainable Development)


Company set aside RM4.8 million for its training and development programmes. These programmes comprised of customised technical as well as non-technical trainings for all levels of staff, to ensure their well-rounded development.

Malakoff thus takes a holistic and integrated approach towards CSR to continue to address the diverse needs of its various stakeholder groups.

Malakoff also recognises that in today’s competitive and dynamic global market, CSR is no longer a “nice to do” it’s a “must do”, with stakeholders increasingly demanding for “CSR accountability”. Recognising this growing trend, Malakoff commissioned the Inaugural Corporate Community Investment Report as a testimony to the Company’s commitment to

further invest and solidify its commitment towards CSR.

As part of Malakoff’s commitment towards greater transparency and accountability to its stakeholders, the Corporate Community Investment Report 2009 aims to showcase the various CSR activities initiated by Malakoff encompassing sports, environment, education and community welfare, while providing key statistics on the impact that each of the initiatives has achieved.

Going forward, Malakoff aims to incorporate benchmarking measures on par with prevailing global CSR reporting standards to continue to provide clear, concise and factual updates to its stakeholders on a regular basis.


MESSAGE FROM THE CHAIRMAN

DearStakeholders,

It gives me great pleasure to present to you, the inaugural Malakoff Corporation Berhad Corporate Community Investment Report 2009. The move to develop and publish this report represents our commitment to take corporate responsibility at Malakoff to the next level.

In this regard, Malakoff wants to ensure that whilst the Company continues to invest in the community, it should also be accountable and open with its communication of the initiatives undertaken through its Corporate Social Responsibility programmes.

For Malakoff, CSR has always been a part of the corporate culture of the company. The Company has over the years been supporting various community-based programmes including sports, education, social welfare and the environment.

The emphasis on CSR in today’s corporate environment be it in Malaysia or abroad, is a testimony of our decision to take CSR seriously since our inception. Companies, be it private or public now realise how critical it is for businesses to act ethically and socially responsible if they wish to succeed. Today, CSR needs to be on the top of the business agenda, a fact that was underscored by our Prime Minister, Dato’ Sri Najib Tun Razak recently. In fact, he called on Malaysian companies to make CSR a part of their DNA.

Despite the challenging economic climate, 2009 is a significant year for our CSR efforts as we had consolidated and streamlined our programmes and activities to make them more relevant, effective and impactful. We launched the Malakoff Community

Partnerships as part of our strategy to create an umbrella CSR programme. We believe, through this rebranding and consolidation of our CSR initiatives, we will be able to track, review and realign our activities more effectively. The Corporate Community Investment Report 2009 is a result of this monitoring and tracking initiative.

The Corporate Community Investment Report 2009 will highlight to you the details of the initiatives we had undertaken throughout the year under review including the activities in the three focus areas of our Malakoff Community Partnerships namely:


However, I wish to underscore the fact that Malakoff contributed significantly to our stakeholder programmes and has invested RM10 million in 2009 through the Malakoff Community Partnerships and other donations such as the CIMB-The Star Padang Relief Fund. In addition, Malakoff had allocated substantially to the Al-Bukhary International University in Alor Setar.

Malakoff is well aware that a responsible company never takes its employees for granted. We are committed to enhance their knowledge and skills through extensive training and development programmes. In 2009 alone, the Company set aside RM4.8 million for training, especially in nurturing local technical expertise in the power and water industry. Our human capital development programmes are a part of our plans to contribute to the Government’s effort to move the nation up the value chain and establish Malaysia as a knowledge-based economy.



Let me reiterate that Malakoff Corporation Berhad is committed to a long-term strategy, not just in terms of our business, but also in being a responsible and active participant of our community. The Malakoff Community Partnerships is a step that we had taken to renew our commitment to our stakeholders, especially the communities around our operations.

Before I conclude, let me thank the Malakoff Community Partnerships Advisory Panel members, the Management team of Malakoff and the staff who made our CSR initiatives a reality. I certainly look forward to working with the team to implement more programmes in 2010.

To all our stakeholders, it is my sincere hope that this report will provide you with a greater understanding and appreciation of our efforts and commitment to the community.

TaNSRIabDuLHaLIMaLIChairmanMalakoff Corporation BerhadMalakoff Community Partnerships Advisory Panel




THE MALAKOFFCOMMUNITY PARTNERSHIPS



In 2009, the Malakoff Community Partnerships was formed as the flagship CSR platform for the Company focused on three key areas, namely


Since formation, numerous initiatives have been strategically planned and implemented for maximum benefit to stakeholders.

CommitmenttoCommunitySportsMalakoff strongly believes that community sports dismantles the differences between people and brings them together, notwithstanding their various backgrounds. This belief has cemented the Company’s commitment in organising and sponsoring numerous community sporting events including:

• Malakoff 26km, Penang (June 7)• Malakoff University Duathlon Series (July - Aug)• Powerman Malaysia (Nov 8)• Malakoff 12km, Kuala Lumpur Run (Dec 20)• Malakoff Interstate Fellowship Ride (Dec 31 - Jan 1, 2010)

Each of these events saw very encouraging response in terms of participation and community interaction during the year under review.

CommitmenttoCommunity&EducationMalakoff recognizes the importance of education in the upliftment of society and the Company has been actively playing a role in especially assisting children and women in this regard. Alongside this, Malakoff has also been hands-on in community welfare and development programmes including:

• Malakoff Annual Charity Ride (May 8 -10)• Adopted School Education Trip (Oct 3- 5)• Adopted Charity Home Gotong Royong (Nov 8)• Education Fund (On going)• Empower For Life (On going)

CommitmenttoTheEnvironmentMalakoff recognises the importance of private companies playing their part to conserve our environment. As a Company, we have always adhered to the global environmental standards of our industry. In addition, we have also initiated the following programmes:

• Malakoff Mangrove Initiative• Green School Campaign (through Penjanabebas, the association of Independent Power)




2009InvestmentsThe following chart provides the breakdown of Malakoff’s key Malakoff Community Partnerships,Training & Development and Donations for the year under consideration:

Logo&RationaleThe logo of the Malakoff Community Partnerships is a true reflection of the Company’s holistic approach towards CSR.

The green box indicates a well defined structure for Malakoff’s CSR efforts. The fixed corner (top left) indicates firm grounding and commitment while the three-curved edges represent compassion, flexibility and a non-rigid approach to those who genuinely deserve assistance.

The four circles inside the box each represent the key focus on community sports, community & education and environment. The circle in itself indicates completeness, continuity and perpetuity.

The circles spiral outside the box, indicating that Malakoff is not limited by boundaries and is committed to extend a helping hand to reach out to the larger community, irrespective of differences in race, religion, gender, status or location.






advisoryPanelThe Malakoff Community Partnerships is overseen and guided by a group of eminent individuals from various fields relevant to the focus of the Company’s CSR activities. This group forms the Advisory Panel

and provides strategic counsel and insights into the various activities under this umbrella platform. Members of the Advisory Panel include:

CHaIRMaN

TanSriAbdulHalimAliChairman,Malakoff

MEMbERS

EncikAhmadJauhariYahyaMD/CEO,Malakoff

EncikMohdRadzuanYahyaDeputyCEO,Malakoff

EncikYusopAbdulRashidHeadofCorporateaffairs&Communications,Malakoff

Secretary

Dato’SeriDrAbdulShukorAbdullahadvisorforCommunity&Education

TanSriDrSallehMohdNoradvisorforEnvironment

ProfessorEmeritusDato’DrKhairuddinYusoffadvisorforCommunitySports



OfficialLaunchWhile the Malakoff Community Partnerships was established in January 2009, it was officially launched by Yang Berhormat Senator Dato’ Sri Shahrizat Abdul Jalil, the Minister of Women, Family and Community Development on December 7, 2009.

During the event, Malakoff also contributed RM30,000 to Yayasan Nikmat Untuk Rakyat (NUR), a non-governmental organisation found by YB Senator Dato’ Sri Shahrizat to assist women, especially single mothers, who are in need of support.

Following the launch of the Malakoff Community Partnerships, the following were the reactions from some of the key stakeholders:

“Therearenowmorecompanies,especiallyinthecorporatesector,thatrealisehowimportantCSRisforthegrowthoftheorganisationaswellasthenation.WhatMalakoffisdoingisonesuchfineexample.”Yang Berhormat Senator Dato’ Sri Shahrizat Abdul Jalil, the Minister of Women, Family and Community Development

“MalakoffpledgestocontributeRM12millionoverthenextthreeyears.”RTM

“CaringCompany”The Edge

“ThisinitiativeisaimedtoreinforcetheCompany’scommitmenttobeingaresponsibleandactiveparticipantinthecommunity.”The Star

“Malakoffworkscloselywithlocalcommunitiesanddeservingcharityorganisationsondonationdrives.”New Straits Times

“MalakofftoinvestRM12millionoverthenextthreeyearsforitsCSRactivities.”Utusan Malaysia


COMMITMENT TOCOMMUNITY SPORTS


• Malakoff 26km Penang

• Malakoff University Duathlon Series

• Powerman Malaysia

• Malakoff 12km Kuala Lumpur

• Malakoff Interstate Fellowship Ride


MALAKOFF 26KM PENANG

“TheRacehadaninternationaldrawwithracersfromasfarasKenya,Canadaandaustria.”The Star

“Itwasafunaswellaschallengingevent.Weareproudtobesponsoringsuchcommunitysportingeventswhichwillbuildunity.”Malakoff Employee

“IthasbeenagoodraceandIhopetotakepartinmoreracesthisyear”Mohamad Bin OmarParticipant & Winnerof Men’s Senior Veteran Category

WHaTTHESTaKEHOLDERSHavETOSay?


Malakoff organised the Malakoff 26km and 6km, Penang 2009 run at Taman Perbandaran Penang attracting 450 participants and 270 participants for the respective race. Participants from all over Malaysia as well as Kenya, Japan, Singapore, Germany, USA, Australia, Denmark, Canada, Austria and Korea took part in the race.

The 26km race open in six categories of Men’s Open, Veteran and Senior Veteran plus the Women’s Open, Veteran and Senior Veteran, saw the top five racers in each category win product vouchers and trophies worth over RM15,000. For the 6km leg of the race, the top three winners in four categories of Men’s, Women’s, Men’s Junior and Women’s Junior received product vouchers and medals worth close to RM 5,000.

The Penang Run is part of Malakoff’s efforts to foster comradeship and instill competitive spirit amongst Malaysians. The run also serves to break the barriers of race, religion, gender and socio-economic status, as the event brings together people from various background across the country. In the process, the Run also boosts local tourism given the spurt of activities revolving around the event.

The maiden Penang Run was launched in 2008 year with close to 450 eager participants taking part in the 26km run. The event saw a wide spectrum of participants including the young, the veterans as well as the senior veterans finish the Run with great zest and determination.

COMMUNITY RUNTHAT FOSTERS UNITY


2008StatisticsforMalakoff26kmPenangTotalMenfor26km:361

TotalWomenfor26km:65

*No6kmeventin2008



2009StatisticsforMalakoff26kmPenangTotalMenfor26km:350

TotalWomenfor26km:50


MALAKOFF UNIVERSITYDUATHLON SERIES

“Therun-bike-runmultisporteventattractedseasonedandamateurparticipantsincludinguniversitystudentsandmembersofthepublic.”The Sun

“WhileImightnothavewon,IamhappythatIwasabletocompletetherace”Ana Mohzian, first time participant

“Impressiveturnoutofparticipants.”ESPN



The Malakoff University Duathlon Series, or MUDS for short, is a tri-series duathlon challenge that aims to encourage new racers to try their hand at such run-bike-run multisport event. With leading local universities acting as hosts every year, this series is aimed at increasing exposure to duathlons for students as well as to the public whilst engaging its participants in a healthy yet fun activity.

First launched in 2003, MUDS has steadily been attracting more and more local sports aficionados to get involved in duathlons, which fundamentally comprise two sports (running and cycling) in three separate race sections. While MUDS would strike a familiar chord among university sports enthusiasts as one of the more established duathlon events to be held locally, this series has been specifically crafted to not be too strenuous in terms of race distance so as to avoid disheartening the spirits of potential participants.

Through MUDS, Malakoff hopes to further promote duathlons in the local sports scene, particularly amongst university students and members of the public while providing a platform for healthy competition without any barriers of race, gender and background.

This year, the three-legged series was held over three consecutive weekends, kicking off at Universiti Putra

Malaysia (UPM) on 19 July 2009, followed by its second leg at Universiti Tenaga Nasional (Uniten) on 25 July 2009 and the finale at University of Malaya (UM) on 1 August 2009.

With approximately 700 participants taking part, this year’s series was divided into four main categories- the University Category (Men’s & Women’s), the Open Category (Men’s & Women’s), the Media Category (Men’s & Women’s) and the Team Relay Category (Men’s & Mixed). All categories were open to participants of all nationalities above the age of 18 years, with the exception of the Open Category that permits entry by underage participants with written consent from their parents or guardians.

Students from both public and private universities took part in MUDS with separate trophies being awarded to the university with the highest number of participants over the three legs (Top University Trophy) and to the university with the best results throughout the series (Best University Trophy).

In addition, winners for each category received placing medals (top five for the University and Open categories as well as top three for the Team Relay and Media categories) whilst all participants who finished within the stipulated time were given certificates.

NURTURING FUTUREDUATHLON ATHLETES


2008StatisticsforMalakoffuniversityDuathlonSeries(MuDS)TotalCompetitor:869



2009StatisticsforMalakoffuniversityDuathlonSeries(MuDS)TotalCompetitor:881



“GoodresponsetoPowermanwith800participantsfrom28countries.”News Straits Times

“IthoroughlyenjoyedtheracecourseinManjung.Thescenicviewandhospitalitytrulymademefeelathome.Iwilldefinitelywanttocomebackhereforthefollowingyear’srace.”Andy SutzSwiss participant & Winner of Men’s Elite category

“IamsatisfiedthatIgaveitmy100%andhopethiswillupmyworldrankings.Now,Iamevenmorefocusedonmakingamark,notjustforme,butforMalaysiaintheupcomingraces.”Shahrom AbdullahMalakoff Employee, participant & first among Malaysian participants

POWERMAN MALAYSIA 2009


Sprint Duathlon. The Individual Long Distance race comprises fourteen categories: Men’s Elite (20 & above), Women’s Elite (20 & above), Men’s 20 - 29, Women’s 20 - 29, Men’s 30 - 39, Women’s 30 - 39, Men’s 40 - 44, Women’s 40 - 44, Men’s 45 - 49, Women’s 45 - 49, Men’s 50 - 59, Women’s 50 - 59, Men’s 60 & above and Women’s 60 & above.

The Malakoff Power Relay includes two sub categories Men’s Relay and Mixed Relay while the Malakoff Sprint Duathlon consists of Sprint Men’s and Sprint Women’s subcategories.

Malakoff has been the title sponsor of Powerman Malaysia for the last eight years and that the Company, in partnership with the State Government of Perak and Majlis Perbandaran Manjung for the fourth time. Since then, it has attracted tourists as well as followers of the Powerman race from countries such as Australia, Austria, Belgium, Brunei, Canada, Denmark, France, Germany, Hungary, Italy, Japan, Kenya, Netherlands, Singapore, South Africa, Switzerland, United Kingdom and United States America.

The eighth Powerman Malaysia on November 20 awarded prize money totalling RM130,000 to winners in 18 categories and forms part of the International Powerman Series of events. The multi-sport event also holds the distinction of being the only Asian qualifier for the annual Powerman World Championships in Zofingen, Switzerland.

The much anticipated Powerman Malaysia 2009 race this year was flagged off the at Majlis Perbandaran Manjung’s Mini Sports Complex and attracted a record 774 professional racers from 27 countries.

Over the years, Powerman Malaysia has seen steady increase in the number of both racers as well as participating countries. From an initial count of 237 racers in 2002, participation has more than doubled over the years. In 2007, 580 participants from over 20 countries took part in the race, while last year saw close to 692 participants from 25 countries vying for the top positions.

Powerman Malaysia is made up of Individual Long Distance, Malakoff Power Relay and Malakoff

THE MOST ANTICIPATEDDUATHLON IN THE REGION

237

2002

294

2003

302

2004

510

2005

457

2006

580

2007

692

2008

774

2009

Year

Participants 1,000

900

800

700

600

500

400

300

200

100

0


POWERMAN MALAYSIA 2009


StatisticsforPowermanMalaysia2002-2009



“Closeto3,000participantsfrominandaroundKLtookpartinthisracetohelpthreecharityorganisations.”Bernama TV

“2,534participantsruntocontributeRM20,000forthreecharityhomes.”Sinar Harian

“Threecharityhomes-NurSalamcharityhome,StMark’sCozyHomeandtheMalaysianMentalHealthassociationbenefitfromthisrace.”Sin Chew Daily

“IamveryhappythatIcompletedtherace.Ihope

tocompeteinmanymoreracesinthefuture.”Six-year-old, Hana Tsu Suffea Abu Suffian, youngest race participant

MALAKOFF 12KMKUALA LUMPUR


The Malakoff 12km, Kuala Lumpur race was conceived to encourage the adoption of an active and healthy lifestyle among city dwellers of all age groups. Held for the first time in 2008, the race drew 1,685 participants from 20 countries, which is considered an impressive record for an inaugural race.

Currently in its second year, the Malakoff 12km, Kuala Lumpur 2009 on December 20 brought together people of varied backgrounds to foster sportsmanship and camaraderie. This race attracted 2,534 participants at the Bukit Kiara Equestrian & Country Resort with the race route followed the

scenic route along Perisaran Bukit Kiara and Jalan Beringin, before returning back into the Resort, covering a challenging 12 km. The 12km race comprised of six categories and carried awards worth RM19,200 for the winners.

To encourage first timers and children to participate, Malakoff also sponsored the 6km race, open to those above the age of 13 years in four categories. There is also a special 6km Charity category. Malakoff contributed towards three charity organisations : Nur Salam charity home, St Mark’s Cozy Home and the Malaysian Mental Health Association.

A RUN TO BENEFITCHARITY HOMES


MaLaKOFF12km&6km2008TamanRimbaKiara,TamanTunDr.Ismail

MaLaKOFF12km&7km2009bukitKiaraEquestrianResort

MALAKOFF 12KMKUALA LUMPUR



MALAKOFF INTERSTATEFELLOWSHIP RIDE


“TheRidehelpedtheresidentsofNaSOMwithcontributionsofRM20,000.”TV3

“Cyclingissomethingthateveryonecanenjoyanditoffersimportanthealthbenefits.WeareveryhappyandequallygratefultoMalakoffforsponsoringandorganisingthisRide.”Mohd. Azmi B. Mohd. Zainuddin, President of KOTRT & Ride Participant

“asyouwillagree,today’sRidehasnotonlybroughttogetherpeoplefromvariousbackgroundsacrossMalaysia,buthasalsoshowcasedthenaturalbeautyofourcountry.”Ahmad Jauhari Yahya, Managing Director and CEO of Malakoff & Ride Participant

“WeareextremelygratefultoMalakofffortheirgenerouscontribution.Wereallyhopemorecompaniesandindividuals

willfollowMalakoff’sexampletocomeforwardtoassistus.”Dr Sim Joo Seng, Advisor, NASOM

“Morethan700ridersfromalloverthecountryracedthroughPenang,PerakandKedahovertwoconsecutivedays-allinthenameofcharity”The Star


The inaugural Malakoff Interstate Fellowship Ride 2009 took place over two consecutive days, commencing on Dec 31, 2009 and concluding at the dawn of Jan 1, 2010. Enthusiastic riders ushered in the New Year with 750 riders during the finale, having covered 220km across the states of Penang, Perak and Kedah.

Malakoff not only organised this Ride, but also sponsored and collaborated closely with the Penang State Youth and Sports and Women, Family and Community Development Committee. The Ride, which combined the sporting event with community welfare, was also co-organised by the Knights of the Round Table (KOTRT) and supported by the Penang State Sports Council.

The Malakoff Interstate Fellowship Ride 2009 kicked off on December 31, 2009, covering 149km on trunk roads over the three states. Departing from Auto

City, Juru, the cyclists passed through scenic roads around Kulim Industrial City, Selama, Bukit Merah and returned back to Auto City again. The route is usually bypassed by drivers as most people would use the highways. However, it gave the riders an opportunity to enjoy the natural beauty and landscape of Penang, Perak and Kedah.

On the following day, as the curtains drew on the Ride, the cyclists welcomed the New Year by crossing the Penang Bridge into the Pearl of the Orient. The Ride took the cyclists through 71km of challenging terrains around the Penang Island and wrapped up at the Penang Youth Park. It was a magnificent sight to watch cyclists of different ages and races crossing over the bridge, representing the true vision of 1 Malaysia.

Cyclists who completed the ride within the stipulated time were awarded certificates.

FRIENDS RIDEFOR A CAUSE


COMMITMENT TOCOMMUNITY & EDUCATION


• Annual Malakoff Charity Ride

• Adopted School Education Trip

• Adopted Charity Home Gotong Royong

• Education Fund

• Empower for Life


“IhadgoodcompanionswhoconstantlymotivatedmetocompletetheRideforanoblecause.”67-year old,Faisal Mohamed Mukadin,oldest participant

“ClosetoninetycyclistspeddledforagoodcausetoraisefundsofRM73,880forsixcharities”The Star

“MalakoffisseriousaboutitsCSRprogrammeandthisRidehasinfacthelpedsixcharityhomes.”Jelita


ANNUAL MALAKOFFCHARITY RIDE


Malakoff successfully brought together sports and charity into a unique annual event - The Malakoff Annual Charity Ride. Since the maiden Ride in 2006, the event has brought together people of varied backgrounds to have fun, cover challenging terrains and in the process donate to deserving orphanages, schools and community centres.

Given the widespread support of all participants and contributors, the fourth Malakoff Annual Charity Ride, organised between May 8 and May 10, was an overwhelming success with a total of 89 riders. Covering 530 km route from Yan, Kedah to Krabi, Thailand, participants rode across challenging terrains spread throughout much of Peninsular Malaysia and for the first time, across the border to Thailand.

The ride in 2009 attracted experienced cyclists from around the country as well as amateur participants who wished to take up the challenge for the very first time from age 16 right up to 67 years. The participants of the ride came from all walks of life, including 50 of Malakoff’s own employees.

The Ride successfully raised RM73,880 from Malakoff’s business associates for six charity homes and community centres in Kedah and Perlis. The charity homes and community centres that benefited from this year’s event included Rumah Amal Yan Kedah, Pusat Latihan Dalam Komunity Yan, Rumah Budi Yan Kedah, Pertubuhan Kebajikan anak Yatim Perlis, PDK Indeera Kasih and Rumah Seri Kenangan Kangar, each of which received RM11,480.

Additionally, a further RM5,000 was donated to the local Muslim community in the town of Krabi, Thailand.

Contribution given were drawn from Malakoff’s business associates such as Newwin Engineering, Alstom Services, Rajah & Tan, Allianz Insurance, Algo Tech, Integrated Engineering Services, Malaysian Coal Integrated Engineering and Sterling Insurance Brokers.

Since 2006, the ride has raised and distributed over RM223,000 to 30 deserving schools, community centres and orphanages throughout the country.

A RIDE WITHA CAUSE


ANNUAL MALAKOFFCHARITY RIDE



ADOPTED SCHOOLEDUCATION TRIP


Over the last decade, Malakoff has adopted a total of 10 schools around the areas where the Company’s major power plants are located. The Company contributes financially towards the basic amenities of these schools located in and around Lumut, Prai and

Tanjung Piai to refurbish their libraries, laboratories and other amenities that the school may require.

The following diagram depicts the list of these adopted schools at the three locations:

In addition to the continuous financial support to these schools, Malakoff has also been organising the Annual Adopted School Educational Trip to Kuala Lumpur since 2000, to provide the rural school children with an opportunity to broaden their horizons as Malakoff has always believed in learning beyond the classroom.

Currently in its ninth year, the programme has seen a steady increase in the number of students joining this educational trip from an initial count of 40 students when it first started, to a total of 120 in 2009.

In the same year, Malakoff once again brought the UPSR students from these adopted schools to Kuala Lumpur for a three-day educational trip. Apart from viewing interesting and educational places including the KL Tower, Bird Park, the Petrosains Centre, KLCC Aquaria, High Five Bread Factory and Putrajaya, a telematch was also organised to foster closer ties between the students and Malakoff employees. Malakoff allocated over RM56,000 to host the students.

The students were also invited to the Company’s Hari Raya Open House at Istana Hotel - a tradition that Malakoff continues to follow with pride.

LEARNING BEYONDTHE CLASS ROOM


EDUCATION FUND


Malakoff runs an Education Fund for the 10 adopted schools located near the Company’s power plants in Lumut, Prai and Tanjung Bin. Towards this end, Malakoff allocates RM600, 000 every three years, to be applied by the following schools :

Lumut,Perak1. SK Segari2. SJK (C) Pei Min3. SJK (T) Ladang Huntly

Prai,Penang4. SK Khir Johari5. SJK (C) Chung Wah6. SJK (T) Prai

Tanjungbin,Johor7. SK Andek Mori 8. SK Sg Boh

9. SK Sri Sinaran Chokoh10. SJK (C) Pei Chow

In 2009, the Company disbursed RM200,000 for these schools to:

• Equip the schools with upgraded academic facilities such as libraries, science and computer laboratory.

• Fund revision classes to prepare the students for national examinations such as UPSR as well as to fund motivational programs.

• Reward high achievers for their academic excellence.

As part of its commitment towards education, Malakoff also offers scholarships for top students at selected universities and provides internship opportunities to deserving candidates.

REWARDING DESERVINGSCHOOLS & STUDENTS


GOTONG ROYONG ATADOPTED CHARITY HOME


Malakoff organised the Gotong Royong at their adopted charity home, Maahad Tarbiyah Islamiyah Al-Ansar, located near Batang Berjuntai, Kuala Selangor in October. The Company contributed RM 18,600 to the charity home to refurbish and repair dormitories, prayer rooms, kitchen, multipurpose and dining halls. Malakoff also donated essential items such as first aid kit, cooking pots, mattresses, blenders and books.

Maahad Tarbiyah Islamiyah Al-Ansar currently houses 148 people, aged between 8 to 50 most of who are rendered homeless or have no families to turn to. The adults are actively involved in administering, teaching, gardening and cooking all though the day, while the children attend the Maahad Tarbiyah Islamiyah Al-Ansar school.

On a monthly basis, the Charity Home needs approximately RM19,700 for maintenance, food supplies and basic amenities, which is currently arranged by contributions from charitable people and organisations from around Batang Berjuntai.

Given this background, Malakoff employees contributed an additional RM5,000 and some essentials such as food ingredients, clothes, detergents, soaps and towels to the residents.

As a sure proof of employee volunteerism, 45 Malakoff employees were present at the Gotong Royong with their families and dedicated an entire morning sprucing up the premises. Over and above this, the employees also pooled in to cook a sumptuous meal for the residents and shared the meal with the residents.

TRANSFORMING ASHELTER INTO A HOME


EMPOWER FOR LIFEINITIATIVE


In 2009, as part of the kick-off for the Malakoff Community Partnerships, the Company collaborated with the Women’s Aid Organisation (WAO) to assist single parents in dealing with the reality of managing themselves, their finances and their health as well as

being responsible for their new born child.

In taking a holistic approach towards this effort, the Company together with the WAO worked on a four-pronged methodology :

bookletforSingleParentsMalakoff commissioned a booklet that will address concerns and fears of single parents in terms of caring for themselves and for their child. The Booklet also guides the parent to empower them to become self-reliant emotionally as well as financially.

A total of 8,000 booklets were published to be distributed to women in need of this information. Of these, 5,000 copies were in English with the rest being in Bahasa Malaysia.

LanguageSkillsSince September 2009, Malakoff and WAO offer English Conversational classes twice a month to single mothers desirous of learning the language to help them in better employment opportunities. Assigning a permanent teacher also helped the attendees to learn better with greater personal attention.

ComputerSkillTo enable these single parents to connect to the digital world, Malakoff donated five computers to the organisation and also provided training twice a month. These classes were aimed at providing knowledge and bringing confidence to the single parents in an effort to improve the possibility of better employment options.

MedicalFundMalakoff allocated RM5,000 as part of the medical fund for ten of the single parents under WAO’s care. This fund will be utilised for doctor’s consultation fee as well as medications for the parent and child.

Over and above these, Malakoff and WAO ensure that the single parents engage in interesting and creative activities such as beading, decoration and culinary skills to keep up their morale.

ENABLING SINGLE PARENTS TO LEAD RESPONSIBLE & PURPOSEFUL LIVES

46The Malakoff Community Partnerships

COMMITMENT TOENVIRONMENT


• The Malakoff Mangrove initiative

• Green School Campaign


“ItisveryfittingforMalakofftomaintainthebalanceofnaturebyreplantingthemangroves.”Menteri Besar of Johor Darul Takzim, Dato’ Haji Abdul Ghani Othman

“MalakoffinvestsRM200,000formangrovereplantingexercise.”TV3

“Malakoffhelpsrehabilitatemangrovesbyplanting9,300saplings.”Sin Chew Daily


THE MALAKOFFMANGROVE INITIATIVE


The Malakoff Mangrove Initiative started off with a six-month pilot mangrove planting and rehabilitation exercise with an initial investment of RM200,000, during which more than 9,300 mangrove saplings were planted over an area of four hectares and a further one hectare with Rhu and Ketapang trees, adjacent the Company’s Tanjung Bin Power Plant.

The primary objective of this initiative was to raise public awareness on the importance of the mangroves and to actively contribute to the conservation of the mangrove habitat in Malaysia.

Malakoff also invited over 2,000 members of the local community to the launch, to raise awareness and encourage involvement on conserving the rapidly

dwindling mangroves in the country. Furthermore, given the importance of educating students on environment conservation and rehabilitation, the Company also enlisted the support of close to 500 students from Sekolah Kebangsaan Andek Mori, Sekolah Kebangsaan Seri Sinaran Chokoh and Sekolah Kebangsaan Sg. Boh - three of Malakoff’s local adopted schools.

Malakoff also developed and distributed the Mangrove Booklet to the members of the local communities and school students with an aim to continue to raise awareness on the importance of conserving the environment and the flora/fauna that flourish in the mangroves.

REHABILITATING THEMANGROVE HABITAT


GREEN SCHOOLSCAMPAIGN


Malakoff is also an active participant of Malaysia’s very first Green Schools Campaign. This initiative is jointly sponsored by Pusat Tenaga Malaysia (PTM) and Penjanabebas, the Association of Independent Power Producers with support from the Ministry of Energy, Green Technology and Water, Suruhanjaya Tenaga, the United Nations Development Program and Global Environmental Facility.

The primary objective of the Green Schools Campaign is to enhance acceptance of the importance of Green Energy amongst school pupils through on-the-ground awareness and education programmes.

Through this Campaign, five schools in Malaysia will soon join the national green technology initiative

with the installation of grid-connected photovoltaic systems to generate electricity and provide a “hands-on” learning tool for its pupils. Each school will receive a 5 kWp BIPV (Building Integrated Photovoltaic) system installed on their buildings to convert solar power into electricity.

The following are the six schools with over 7,500 students that will benefit from this innovative initiative :• SMK Bukit Baru – Melaka• SJK (T) Sg. Renggam – Selangor• SMK St John – Kuala Lumpur• SMK Lutong – Sarawak• SMJK San Min – Perak • SK Sri Chokoh – Johor

LISTENING TOSTAKEHOLDERS



As part of Malakoff’s efforts to actively engage with and solicit feedback from key stakeholders, the Company embarked on a Baseline Media Perception Audit towards the end of 2009.

A total of 15 key senior editors / journalists from leading media houses were interviewed via a guided questionnaire. The focus of the audit is to gauge the awareness level on the Malakoff Community Partnerships programme amongst the media and to solicit feedback on the effectiveness of the activities under the flagship CSR programme.

The key findings from the exercise are:1. All the respondents were able to identify the

key components of the Malakoff Community Partnerships.

2. All the respondents believe that the Malakoff Community Partnerships is a success, with more than 50% of the respondents rating it at 8 ( of a maximum of 10). The average score is 7.4.

3. All respondents were willing and enthusiastic to recommend steps to further solidify Malakoff’s leadership position in CSR, indicating that they support the programme and would like to see how the activities can be further improved.

Going forward, Malakoff has put in place plans to incorporate these recommendation in its 2010 programme. The Company has also institutionised the Media Perception Audit as an annual endeavour to continue to gain feedback and ideas from key stakeholders to further strengthen its CSR initiatives.


MALAKOFF 12KM KUALA LUMPUR







ANNUAL MALAKOFF CHARITY RIDE



POWERMAN MALAYSIA



MANGROVE INITIATIVE


MALAKOFF INTERSTATEFELLOWSHIP RIDE

GOING FORWARD



For Malakoff, CSR has been an ongoing commitment to doing its part to proactively participate in the development of the local communities. Not one to rest on its laurels following the success of the Malakoff Community Partnerships in its maiden year, the Company pledges to continue investing in CSR in the years ahead.

In 2010, plans are underway, to continue to proceed with not only the programmes that were implemented in 2009, but also to include new initiatives that will further solidify the Malakoff Community Partnerships.

On the Environmental front, plans are underway to award credible scholars working on mangrove rehabilitation with research grants, in addition to proceeding with the next phase of the Malakoff Mangrove Initiative. Malakoff is in the midst of discussing with local universities on the details of this partnership between corporations and academia.

Moving forward, the Company is also committed to fund research projects on mangroves. The Company aims to collaborate with environmental scientists and universities on projects that will focus primarily on mangrove conservation as well as rehabilitation.

The implementation of the Green School Campaign will also commence during this time.

Over and above this, to assist the local communities, the Company has plans for an Ikan Siakap Initiative during which some 40,000 Siakap fry will be released into the tributaries of Sungai Pulai in Johor namely Sungai Karang, Sungai Redan and Sungai Jeram Batu.

This Initiative, in collaboration with the Johor Fisheries Department, will benefit a total of 250 fishermen around the area and when successful, it is estimated that it may potentially boost their revenue by up to 40%.

RENEWED COMMITMENTTOWARDS CSR


GOING FORWARD



ABOUT THE COMPANY

Malakoff was incorporated in 1975 as a plantation based company and listed the following year on the Kuala Lumpur Stock Exchange. In the early 1990s, Malakoff shifted its focus on power generation and in April 2007 was taken private by MMC Corporation Berhad.

Malakoff is now a leading independent power and water producer with core focus on power generation, water desalination and operations / maintenance services.

Malakoff is Malaysia’s largest independent power producer with net generating capacity of 5,020 MW from its six power stations. As part of its global expansion plans, Malakoff has operations in Saudi Arabia, Jordan, Oman, Algeria as well as Kuwait. The company is also making inroads into the fast growing South-East Asian markets.

Malakoff believes in working together with all stakeholders in productive partnerships. As such, the Company takes pride in being a responsible operator and a good neighbour in whatever we do and where we go.

For more details on the Company, please visit the corporate website at www.malakoff.com.my.

MALAKOFF CORPORATION BERHADLevel 12, Block 3B, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur

Tel: +603 2263 3388 • Fax: +603 2263 3333

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