- as of Annual Report 2016

Human capital development continues to be a priority within the Group, particularly in the areas of talent retention and development (including management leadership succession), occupational health and safety (“OSH”), employee welfare as well as community investment and development. Apart from prioritising these matters across our various platforms, we are also committed to creating a conducive and supportive workplace environment to help employees across the Group be more productive and innovative.


Our Approach to Diversity

The Group’s policies and initiatives such as recruitment, retention, training and development, as well as Group-sponsored corporate and social activities are all implemented in a manner that does not discriminate against ethnicity, gender, age, disability, or status. Our employment practices are underpinned by the principles of fair treatment for our employees and a balance between performance, pay and participation. The Group employs, appoints, promotes, develops and rewards its employees through the principles of meritocracy and fairness. We are committed to hiring and promoting people based on company-defined criteria. All these measures ensure that Malakoff family remains a well-balanced, safe and harmonious one.

Occupational Health and Safety (“OSH”) 

Malakoff to date has implemented a comprehensive HSSE Management programme in accordance with the ISO14001 and OHSAS18001 standards. These two standards are voluntary in nature and are widely regarded as the Gold Standard in HSSE. This involves detailed studies on hazards and risks assessment, operational controls, training and competency systems, audit and verification as well as supporting programmes. In 2016, the Group planned and implemented various HSSE programmes and initiatives to promote OSH within the organisation. The Malakoff HSSE Day, Road Safety Campaign and Take 2 Programme activities were conducted to increase OSH awareness among staff.

As for indicators to monitor the OSH of our workplace, we have enhanced our calculation and reporting methodologies, which are currently done in a more holistic manner. In 2016, the number of Lost Time Incidents (“LTIs”) recorded was one compared to zero in 2015. This was due to the inclusion of projects as part of the calculation. Our LTI frequency rate also recorded an increase in 2016 as compared to 2015. The increase from zero to 0.16 was due to a single LTI case recorded during the construction of TBE Power Plant. On the other hand, the increase in the number of total incidents recorded in 2016 is due to the increase in the reporting of near-miss incidents at plants. For the period between 2014 to 2016, there was no fatality due to any work related incidents recorded.


Talent Retention and Development

As Malakoff continues to become a premier global power and water company, we recognise the critical need to have a capable and talented workforce who are able to support our aspirations. Throughout the hallenges in 2016, we have put in place various initiatives to enrich and elevate the capabilities and competencies of our human capital to drive sustainable productivity. At the same time, our Group Human Resource Division continues to build our leadership pipeline, strengthen the performance culture in Malakoff and rally the support of our people towards achieving the Group’s vision and mission.

Our talent, both technical and non-technical, are key to our success. As at 31 December 2016, we had 1,074 employees as part of Malakoff Team. The Group’s workforce is ensuring Malakoff is able to operate, produce and serve at the highest level of efficiency and efficacy. The details of our workforce are highlighted below:


Given our ageing workforce and the need to ensure that the Group has the diversity that is required to sustain our business, the Group’s Talent Management Committee (“TMC”) has been tasked with governing Malakoff’s succession management strategies and plans. The TMC also oversees all succession management initiatives to ensure the achievement of the outlined objectives. This is helping ensure that the Group has a continuous supply of competent talent in key leadership positions and specialist roles on both the functional and technical fronts. The TMC also plays a role in ensuring the development and learning experiences of our talent in addressing the competencies required for the different levels of employment. In 2016, Malakoff achieved most of its leadership succession objectives.

Over the course of 2016, we rolled out a database to identify a pool of internal talent as well as undertook gap assessments to review the talent’s preparedness to take on bigger roles and responsibilities. The database was made available to the TMC in order for them to review the need for such talent(s) across the Group.


Training Programmes

Our nature of business requires employees to be competent in responding to the changing business environment and to have adequate technical skills and capabilities to execute with exceptional speed. For this, the Group continues to provide skills and leadership training to all employees through various methods encompassing formal and informal trainings like classroom sessions at the Group’s Academy of Excellence and on-job-training (“OJT”) such as short term assignments, special projects and job rotations to build their competency and exposures.

In 2016, the Group invested approximately RM1.1 million on soft skills and leadership training and another RM2.19 million on technical training of which some 1,600 man days and 5,300 man days were utilised respectively. The Group also partnered with a number of programme providers from 2012 to 2016 to run the Leadership Development Programme (“LDP”), Senior Leadership Development Programme (“SLDP”) and Supervisor Development Programme (“ SDP”) in a way to suit to the development needs of selected talent at the middle management level. A total of 50 employees participated in these programmes.

As the demand for skilled and knowledgeable manpower increases, more specialist training initiatives are being developed to ensure business sustainability and growth.

To enhance our employees’ potential in delivering on their responsibilities, we have set in place plant-specific training simulators at each power plant. These together with our Competency Based Assessment ("CBA") initiatives have served as an effective platform to simulate realistic power plant scenarios for effective technical training and competency assessment.

In 2016, the Group strengthened its professional certification programme offering when we embarked on the Project Management Programme (“PMP”) at the Beginner, Intermediate and Certification levels. Ten of our employees were involved in the PMP exam certified by the Project Management Institute (“PMI”). The Group also embarked on a Lean Six Sigma (“LSS”) programme to ensure process excellence and enhance shareholder’s value creation. About 30 Green belters and 26 Yellow belters were nominated to participate in the programme. 

To build a high performance culture and empower the Group’s employees, enhancements continue to be made to the current performance management system. The changes throughout the years have involved revisions to the key competencies required for employees to deliver their best performance as well as continuous revision and updates to the Key Performance Indicators (“KPIs”). Previously, our normal performance evaluation was done once a year, however, in 2013 we started to implement this twice a year to ensure that the employees are performing within expectations. 

We also recognise that effective and timely performance evaluation sessions enable employees to give of their best throughout their tenure with the Group. During the performance evaluation sessions, both managers and their team members meet twice a year to review and clarify their performance results, determine the training and development gaps, and, discuss career aspirations and plans.

In 2016, we place a strong emphasis on “Performance through Engagement”. This calls for Managers to engage with their subordinates constantly and to have a continuous one-on-one feedback session, to ensure that every level of employee in the organisation is aligned towards a common goal.

Employee Welfare

All Malakoff’s permanent employees are offered a competitive base salary and incentive plans. Our compensation and benefits programmes are streamlined across the Group as far as possible and are benchmarked to the general market. The Group strive to foster employee wellness, health and well-being through competitive wellness benefits.

To provide compensation that is competitive, we have in place a benefits framework that serves to attract and retain employees as well as links to performance and pay. The benefits framework includes:

1. Fixed compensation such as salary and fixed allowance;
2. Variable compensation;
3. Benefits and perquisites such as medical and, insurance coverage; and
4. Recognition programmes

The Group also organises various activities ranging from recreational to volunteering oppurtunitites. In aligning our employees with the Group’s ambition, the Group maintains regular and open communication with all employees on important corporate updates and changes. These take place through Townhall sessions, briefings from the Management, as well as emails and the Group’s intranet portal. These efforts to engage with the employees aims to make them more productive and help them achieve the desired level of performance.

In 2016, the Group partnered with HayGroup to conduct the 2016 Employee Engagement Survey (“EES”). The objective of the exercise was to gauge the level of engagement of employees across the Group. The results were encouraging as we received a response rate of 81 percent, which demonstrated our employees’ commitment towards making Malakoff an engaging workplace. Employees’ feedback was reviewed and prioritised in line with identified engagement drivers for further actionable strategic initiatives that will help drive employee engagement.

The Group also organises various activities ranging from recreational activities to volunteering opportunities to engage with employees and other stakeholders. The Group’s Kelab Sukan dan Rekreasi Malakoff (“KSRM” or “The Club”) serves as an effective platform for this. Registered in January 2016, the Club organises sports and recreational activities for Malakoff staff on a regular basis. For example, for Malakoff Kuala Lumpur headquarters staff, Zumba classes are held at the office training centre after work on a weekly basis. Running and fitness training are also held at the nearby Perdana Botanical Garden after office hours on a weekly basis. These activities are meant to promote healthier living among the Malakoff family.

An initiative called the Malakoff Workplace Wellness Programme (“MWWP”) has been set up with the objective of promoting a healthy lifestyle. The said wellness programme is managed by a committee comprising of representatives from HR, KSRM, Corporate Affairs and the power plants. The programmes planned include indoor, outdoor, nutritional and general health activities. A Stop Smoking campaign will be also launched and more importantly, a self-service wellness centre will be established in every business unit so that the employees can monitor their health condition, e.g. blood pressure and glucose count, amongst others.

Employees are also encouraged to participate in various corporate responsibility programmes organised by the Group, such as the Malakoff Turtle Awareness and Malakoff Coral Rehabilitation programmes as part of our engagement with our stakeholders.


Community Investment and Development

Since our inception, we have been deeply entrenched in society and are an active member of the many communities where we live and work. We remain committed to strengthening our relationships with multiple stakeholders so that we can prosper together. We remain committed to our longterm strategy of being a responsible and active participant in the society, by focusing our efforts in the areas of community, education and the environment, especially in the communities in which we operate.

In 2016, Malakoff contributed RM2.4 million towards the construction of the mosque located near the Group-owned Tanjung Bin Power Plant. The new mosque, which can accommodate 500 people at one time, provides a more comfortable and conducive environment for the local community to perform their prayers and other religious activities. The mosque was officiated on 15 January 2016.

Malakoff also gives priority to members of the local communities that apply for vacancies or industrial trainees at its plants. Approximately one-third of our employees are locals from the vicinity of the operating sites. In addition, we also provide opportunities to local contractors in supporting our operations. 

Malakoff is deeply committed to undertaking various initiatives focusing on youth education and environmental awareness. To date, Malakoff has adopted 11 schools in Segari (Perak), Prai (Penang), and Tanjung Bin (Johor). Malakoff supports these schools via Malakoff Edufund that aims to equip the schools with better infrastructure and learning tools.

Malakoff is doing its part for the environment by collaborating with the Ministry of Natural Resources and Environment (“NRE”) and Department of Marine Parks Malaysia (“JTLM”) in its efforts to care for the marine ecosystem. The Malakoff-NRE Coral Rehabilitation Project 2016 held from 26 to 28 September 2016, at Pulau Besar, Mersing, Johor, aimed to highlight the importance of coral in the marine ecosystem and to raise awareness and support from the local community on the threats that they are facing. To date, divers from JTLM and Malakoff have planted 4,000 nubbins around the island and undertaken a coral clean-up.

In addition, 10 mooring buoys have been installed at the islands within Johor Marine Park and 300 meters of marker buoys have been placed at the water recreational area at the waters off Pulau Besar.

Malakoff continues its collaboration with the Fisheries Department to implement the annual “Kenali Penyu, Sayangi Penyu” Turtle Awareness and Educational Programme at Segari Turtle Management Centre. This fifth edition of the programme, which aimed to promote public awareness about the threat to turtles, saw 200 volunteers from Malakoff and the Fisheries Department as well as 20 students from Institute of Marine Engineering Technology, Lumut campus of Universiti Kuala Lumpur actively participating in the programme.

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