Chemical Company of Malaysia Berhad Sustainability Report 2018

With regard to complaints relating to product quality at the Polymers Division, only 11 complaints were received in 2018, which is significantly lower than the previous years. The Division perceives that its customer complaint cases are well under control as they are meeting the target set by the Department of Quality which is “to control justified customer complaints to less than 15 cases per year”. Our Commitment To Sustainable Social Practices We have established mitigation plans to address individual issues by strengthening process control, improving delivery, increasing the accuracy of measurement, and developed system controls. We have tightened process control activities by developing product manufacturing work instructions, packaging material cleaning procedures, and a product stability library, as well as by improving the conditions for financial goods storage. We identified the root causes of all 11 complaints received in 2018 and planned out each corresponding corrective action as listed below. Category Root cause Corrective Action Product Specification Product deterioration (lumpy; mold; chlorine drop) or contamination Tighten process control and concession delivery Weight discrepancy Short in weight Improve weighing activity Application Product inconsistency Tighten process control Packaging Human error on labelling Develop system controls (SAP) Set Standard i) Develop product Specification ii) Develop QPS Customer Satisfaction Survey – yearly basis Audit: i) Quality Management System (QMS) Audit ii) Customer Audit Continuous Improvement: i) GEMBA site walk about ii) Operation and Sustainability (O&S) Project Initiation • Written procedure for all Finished Goods (FG). • Equipment used to produce and test the products are well calibrated. • Periodic validation and training for the Quality Control (QC) inspector. • Develop product specification and QPS and perform trend analysis on results obtained. • Annual customer survey (content of survey: sales support; sales visit; order and document management; product delivery; product quality and product pricing). • Review in MRM meeting for the action required. • Audits are performed to ensure that the Company is able to deliver high-quality products, operate efficiently, and support continuous improvements. • Annual QMS Audit, Internal QMS audit, Yearly Surveillance Audit. • Customer Audit – increased to four (4) times in FY2018 from one (1) audit carried out in FY2017. • International Qualification Assessment (IQA) – increased to twice in FY2018 from one (1) assessment carried out in FY2017. • Continue to initiate O&S project. • GEMBAWalk. Operation and Sustainability (O&S) Projects Total Disposal (Washed water) Maintenanc , Re-engineeri g Waster Management 5S Management Inventory Management Process Improvement Compliance & Regulatory 10 1 1 6 0 0 5 5 20 22 2 1 Employee by E Contr Average Trainin 11.7 8.11 11.05 11.36 2016 2017 2018 Quantity (MT) Saving (RM) 131.8 256 2015 2016 2017 2018 Emplo 12 Sen Ma 2015 2016 2017 2018 11 30 13 11 Customer Complaint / Feedback Manag Permanent E ployee Distribution 21 29 126 241 Executive Non-Executive Senior Management Middle Management Senio Middl Indian Others Bumiputera Chinese 39 CHEMICAL COMPANY OF MALAYSIA BERHAD