Chemical Company of Malaysia Berhad Sustainability Report 2019

In FY 2019, the Chemical Division’s expenditure on local vendors made up 56.16% of its total spend, while at the Polymers Division, it amounted to 81.72% of its total spend. At the Chemicals Division, of the total 726 suppliers that it engaged with in FY 2019, a total of 650 were local vendors while 76 were overseas vendors. Out of the Polymers Division’s total of 260 suppliers, it engaged with 254 local suppliers and 6 foreign vendors in 2019 while our headquarters engaged with 216 local suppliers and 11 foreign vendors. ANTI-CORRUPTION PRACTICES [205-2] In our efforts to uphold sound and transparent business practices throughout our entire supply chain, we undertake communication and training on anti- corruption policies and procedures as well as cascade this down across the entire Group through our integrity initiatives. Back in May 2014, the Company signed a Corporate Integrity Pledge with the Malaysian Anti-Corruption Commission (MACC) marking our commitment to strengthening corporate governance, accountability and transparency in all aspects of the Group’s business operations. By signing the pledge, we made a unilateral declaration that we would not commit corrupt acts; that we would work towards creating a business environment that was free from corruption; and that we would uphold the Anti-Corruption Principles for Corporations in Malaysia in the conduct of our business and in our interactions with our business partners and the Government. In 2015, Integrity Pacts were rolled out and the Group’s suppliers were encouraged to sign these pacts to state their commitment to supporting the Group’s initiatives to combat corruption. | Our Commitment to Sustainable Economic Practices | 56 160 11 142 508 78 27 227 6 96% 56.16% 81,7% 18.28% 43.84% 4% CCM HQ Total: 227 Total: 726 Total: 260 Chemicals Polymers Local (Bumi) Local (Non Bumi) Foreign Vendor 36 CHEMICAL COMPANY OF MALAYSIA BERHAD