IJM Corporation Berhad

OTHER THAN THE HOME ENVIRONMENT, THE WORKPLACE IS THE SETTING IN WHICH MANY PEOPLE SPEND THE LARGEST PORTION OF THEIR TIME. CLEARLY UNDERSTANDING THIS, THE GROUP CONSTANTLY STRESSES THE IMPORTANCE OF A SAFE WORK ENVIRONMENT AND HAS IMPLEMENTED PREVENTIVE MEASURES IN THE WORKPLACE AND THE AREAS WHERE OUR OPERATIONS ARE BASED. THE COMPANY HAS AN EXTENSIVE PROGRAMME TO EDUCATE AND CREATE AWARENESS AMONG EMPLOYEES ON THEIR COLLECTIVE RESPONSIBILITIES FOR THE PREVENTION OF INJURIES AND OCCUPATIONAL HEALTH HAZARDS.

Health & Safety

To achieve its health and safety objectives, the Group has put in place acomprehensive Health, Safety and Environment (“HSE”) framework and management system which aid the Group to:

• Comply with all applicable occupational health and safety regulations, guidelines and other requirements;

• Set-up various Safety Committees for monitoring, continuous reviews and improvements on health and safety;

• Carry out planned HSE audits and surprise inspections;

• Familiarise all employees with HSE training, information and facilities available;

• Increase awareness and accountability at all levels of the organisation; and

• Measure HSE performance.

The Group strongly feels that employers and employees must work together in effecting health and safety guidelines in the workplace. The various divisions of the Group play an important role in providing employees with first-hand information, involving them in preventive plans and sharing good practices in occupational health and safety.

Each employee has an individual responsibility to understand and support the Group's HSE policies, and actively participate in the HSE programmes. Signage and notices at the workplace also serve to caution and remind staff on the best HSE practices. This is aimed at ultimately promoting a culture of occupational accident prevention.

HSE Management System

IJM has an established HSE Management System ("HSEMS") to implement and monitor the HSE programmes. Various HSE committees and performance indicators have been put into action where the Group operates, to ensure conformity with applicable standards and for monitoring purposes.

Construction Project Managers are required to put up their Project Safety and Health Plan ("PSP") and Project Environmental Management Plan ("PEMP") prior to the commencement of operations for effective process control and to reduce the risk of incidence during dangerous

operations. They are monitored by a HSE Management Committee ("HSEMC") that meets periodically to review HSE operations and compliance to the Company's policies, procedures and objectives.

A separate HSE Committee ("HSEC") was also established at corporate level and all project sites in compliance with OSHA Act 1994. This committee provides advice and makes recommendations to the Board:

• on HSE policies, clearly setting out the commitments of the Company to manage HSE-related matters effectively;

• by monitoring the performance of the Company with respect to the implementation of the HSE Management System designed to ensure the commitments made in the policies are being met and that HSE-related risks are being assessed, eliminated, avoided or controlled;

• by reviewing and recommending targets for HSE performance and assessing progress by the Company towards those targets; and

• investigate HSE incidents within the Company and considering appropriate actions and measures to minimise the risk of recurrence.

OHSAS Certification

In 1999, IJM had the honour of being the first construction company in Malaysia to receive the internationally recognised Occupational Health and Safety Assessment ("OHSAS") 18001:1999 certification. As a result of effective implementation of the HSEMS, this was successfully upgraded to the improved and revised OHSAS 18001:2007 in October 2008.

Monitoring and Measurement

While numbers and figures are important as they articulate the extent of a problem, their main purpose in IJM is prevention. Targets are set to continuously measure and assess HSE performances in its business operations.

During the financial year, a total of 24 HSE audits and 86 surprise inspections were carried out across active projects at different stages of construction. The objective of the audits was to ensure that established systems conform to HSE requirements and standards and more importantly, to monitor the effectiveness of IJM's HSE policies and procedures. These are all carried out as part of IJM's continuous improvement process. Audit findings are reported to management and recommendations for remedial actions are taken immediately. The Division also recorded a Frequency Rate of 0.10 and Severity Rate of 1.94 for cumulative man-hours of 20.1 million for the year under review.

In view of the nature of the Industry Division's operations, the Division has additional incentives to promote safety in its factories, plants and quarries. To date, more than half of the Division's work sites have been rewarded for having achieved continuous 500 Accident Free Days.

The Industry Division's health and safety commitment is highlighted in its ongoing 'Safety and Health Campaign and Competition', which has been running since 1996. The audit comprises administrative elements as well as physical inspection of the worksite including amongst others, safety practices, general housekeeping, personal protective equipment, reporting and investigation procedures. The primary objective was to establish compliance with statutory regulations as well as to improve the overall health and safety of the workforce.

The winners of the Industry Division's 'My Workplace My Home 2008' campaign were the spun pile factories in Kapar, Nilai and Jawi which secured the top three prizes. The Jawi factory undertook an initial Chemical Health Risk Assessment (CHRA) in compliance with the Occupational Safety and Health Use and Standards of Exposure of Chemical Hazardous to Health (USECHH) Regulation 2000. The assessment set in motion the set up of appropriate control measures, training, monitoring and health surveillance activities to protect the health and safety of its employees.

In sync with CHRA, the Industry Division also conducts Noise Monitoring as prescribed under the Factories and Machinery (Noise Exposure) Regulations 1989 in all its factories. Personal monitoring is also scheduled annually for its employees as part of its hearing conservation programme.

The Plantation Division continues to provide training and retraining of employees and contractors to conduct all activities in a responsible, safe and healthy manner in various aspects of plantation operations to ensure compliance with local legal requirements. Safety Officers carry out periodical audits, advisory and training on safety and health practices in all operating units covering chemical usage, fire drills and industrial first aid. CHRS are carried out in all the Division's palm oil mills and moving into the estates.

Meanwhile, the Port Division has in place a safety policy in accordance with the DOSH requirements which are applicable to all port users and employees. The Division is committed to ensure safe working practices at the port by conducting daily safety briefings and tool box meetings, weekly audits and monthly joint-audits with the local regulator, Kuantan Port Authority. Its Emergency Response Team conducts regular exercises to ensure immediate responses and professional execution in the event of emergencies.