Sustainability Statement Print E-mail

It is our pleasure to present to you Globetronics Sustainability Report for Year 2019. As a supplier in the global electronics supply chain, Globetronics strives to be a reliable and competent manufacturing partner to our world renowned customers in bringing the latest miniaturize components and applications into smart devices to improve the lives and connectivity of global consumers. As a homegrown Malaysian company, Globetronics is committed to play our part in making sustainability a part of our organizational values in evaluating our business strategies and decisions. With a focus of striking a working balance in managing the Economic, Environment, Society, Governance (“EESG”) criterias within our community whilst maintaining operational profitability, we are preparing the Group to succeed now as well as into the future.

Being a high technology manufacturing company, some of the key material matters for us would include the welfare of our employees, our procurement practices in supporting the local supply chain, manufacturing excellence, practicing the 3R’s (Reduce, Reuse, Recycle) in our business operations and exploring the use of renewable energy sources in caring for our environment.

The Board leads the Group in embedding sustainability as part of our business strategy going forward. The Group has adopted a Sustainability Policy which has been proliferated to our employees and would govern the way we do business with all our stakeholders in the future.

A copy of the Sustainability Policy is available for reference at the Company’s website www.globetronics.com.my.

Scope of Report
The scope of the Sustainability Statement covers the period from 1 January 2019 to 31 December 2019. The policies and strategies discussed in the report apply to all subsidiaries within the Group save for Globetronics International Incorporated (foreign investment holding company), Globetronics Industries Sdn Bhd (dormant company), Globetronics Medical Technology Sdn Bhd (provision of computer hardware and software), Trilion Suntech Sdn Bhd (dormant company) and NGK Globetronics Technology Sdn Bhd (Associate Company with < 50% stake).

Sustainability Governance Structure
The drive to initiate and embed sustainability into our business strategies is led by our Board of Directors, who play a critical role in continually establishing and formulating new business strategies such as sustainability and the Enterprise Risk Management (“ERM”) framework to ensure that the Group remains proactive and dynamic in dealing with the constantly changing global environment to succeed now as well as into the future. The Board is supported by the CEO and Audit and Risk Management Committee ("ARMC") in providing guidance and implementing policies to ensure that Group assets are protected and the sustainability and risk governance issues are proliferated across the subsidiaries in the Group.

The Business/Operations Risk Review Committee (“BORRC”) would implement the business strategies that ensures the sustainable performance of the Group economically through the implementation of manufacturing excellence, NPI, supply chain management and data integrity/security. The activities and proposals from business units are actively monitored through daily updates, bi weekly managerial meetings as well as detailed monthly business review where strategies and decisions are evaluated to ensure that they are in line with the Group's vision and direction.

An Environment, Social, Governance (“ESG”) Committee headed by the CEO, business unit leaders and key management personnel has been tasked to ensure the smooth facilitation and embedding of sustainability into the key activities of the Group. The ESG committee meets once a month to present indicators such as energy usage, emissions, safety as well as propose environmental and social projects to be carried out within the Group.

SustainabilityStatement2019

Stakeholders Engagement and Prioritization
Stakeholders represent the diverse group of parties that have a degree of interest and influence on the Group and the way it operates. The Group is committed to regularly engage with its key stakeholder base that include customers, employees, government/regulators, investors/media and our Board to find out issues that concern them and to build a balanced, holistic business strategy that is incorporated based on the prioritization of the respective stakeholders. In view of the ongoing changes in customer mix and products, we felt that it would be appropriate to adopt the practice of doing annual customer surveys to ensure that we achieve customer satisfaction at all times, and this would be one of the key new engagement with stakeholders we have added for the year. Some of our key stakeholders and the type of engagement we have with them are summarized as below.

StakeholdersEngagement2019

Materiality Assessment
Our materiality assessment process is done through our evaluation of various stakeholders’ engagement throughout the year, peer comparison reviews and cognizance of the current economic, environmental as well as social trends both locally and globally. On top of this, there is a continual scanning of the business environment done to ensure that we stay on top of the business risks and opportunities that abound as a result of the rapidly changing global environment. This would surmise to determine the key material matters that would impact the Group and stakeholders based on our interaction with stakeholders and from internal discussions in the ESG Committee. Some of the key sustainability matters identified by the Group are detailed below.

IdentifyingSustainabilityMatters2019

How do we contribute to UN SDGs
In September 2015, the United Nations General Assembly has set up the Sustainable Development Goals (“SDGs”) which comprise a set of 17 goals as per below with respective targets to be achieved by year 2030. These SDGs are with the aim of creating a better world for mankind. In our sustainability drive, we are aware of the role we can play in helping to achieve the SDGs and will illustrate our contributions in the respective activities.

IdentifyingSustainabilityMatters2019_1

ENVIRONMENT

ENVIRONMENT2019

Environmental Management (Application: SDG 3, 6, 12, 14, 15)
At the Group’s various plants, we ensure strict compliance with the environmental laws governing plant operations and maintenance in areas relating to environmental standards, emission standards, noise level management and treatment of plant effluents and waste water. As part of our corporate responsibility agenda, we have measures in place to minimize the adverse impact on the environment and to achieve continuous improvement of our plants/factories’ environmental performance.

Water used for our manufacturing sites form a crucial part of the process for most of the production lines, as unclean water can cause high particle counts that disrupt the ability to produce a quality product. As such, we have in place the proper filtration and distilling equipment to ensure high quality water supply to our lines at all times. Industrial and sewage effluents are measured against a range of parameters to ensure that is compliant to all industrial standards. Scheduled production shutdowns (to improve UPH) and regular preventive maintenance are performed on facilities chiller, cooling tower, strainer, vacuum, transfer pump and circulation pump to reduce the usage of water.

We introduce a new program which involved the valve control of the wafer sawing process, whereby the water that is normally discharged to the drain is circulated back to the tank instead. This program had helped to save 29,963 m3 of water in Year 2019.

Scheduled waste management programs are also in place with a waste code list measured and submitted to the Department of Environment (“DOE”) on a monthly basis. The following is a summary of the waste disposal activities carried out by the Company.

DOE

Industrial scraps and salvageable material are either sold to licensed scrap vendors or recycled/reused in the production lines to minimize waste to the environment.

For the areas where air quality is concerned, they are measured on a periodic basis and include the areas of generator set (emission of solid particles within stipulated limit), gas and piping maintenance to ensure no leaks and compliance to environmental standards. Our plating operations are compliant to the Standard “C” limit in the Environment Quality (Clean Air), Regulation 1978, Part V, Air Impurities No.27 where hazardous gasses are present.

hazardousgasses

We also have scrubber and exhaust systems where the air pollutant concentration are to be in compliance to Environmental Quality (Clean Air) Regulation 2014, and the results of the tests for Year 2019 are as follows:

ScrubberAndExhaustSystems

For Genset 1 and 2, it was also subject to boundary monitoring test under The Planning Guidelines for Environmental Noise Limit and Control (Schedule 1 Specification) where it is not supposed to exceed the range for day time of 70 dB(A) and night time of 60 dB(A). The test results showed that we did not exceed the noise specification for Day Time but exceeded the noise specification for Night Time. The Night Time results indicated that the noise sources came from not only the genset but also from our neighboring factory, which is a factor that is beyond our control.

For energy reduction, we have implemented the Intelligent Flow Controller (“IFC”) to the air compressor systems of most of our subsidiaries and for our new projects, the chiller systems that we are installing would also be of the energy efficient variant. Other activities include preventive maintenance of facilities equipment, installation of stabilizers on air compressors and scheduled shutdown of operations to reduce electrical usage. These activities have resulted in an electrical energy reduction of about 10% below the theoretical usage in Year 2019 had these activities not been implemented.

Currently, all our Penang manufacturing factories are certified to the international environmental management systems standard, ISO 14001. Where it is applicable and upon requests by our customers, we have also complied to 4 other environment regulations which are the restriction of hazardous substances (RoHS), halogen free, substance of very high concern (“SVHC”) and conflict minerals reporting template (“CMRT”).

The key indicators of electricity usage, CO2 emissions and water consumption are now reported in a monthly ESG Committee meeting. Activities undertaken and programs introduced to reduce usage of the key environment elements are also presented in this meeting.

Renewable Energy - Solar (Application: SDG 7, 13)
Development of sustainable energy initiatives have been one of our Group’s key focuses particularly in the reduction of electricity consumption via the installation of solar panels on the rooftops of our building sites. The solar panels are negotiated on a lease agreement, where the panels belong to the installer and for our side, there would be zero investment costs and maintenance fees while securing a rate lower than the current TNB rates for the energy produced by the panels. The installation has been completed for all buildings that are feasible to be fitted with solar panels in Year 2019, which we refer to as G2 and G3 respectively. Another building, G4 is pending to be fitted with the solar panel. Installation would commence after a building feasibility has been completed and a performance review of the existing installed panels. The solar panels have contributed about 312,300 kwH energy for the period of March to December 2019, which is equivalent to about 4.2 sun hours per day. The panels are fitted with the ability to switch to normal power supply mode during non-active periods at night.

Although the amount is not large due to limited sun hours per day, this had enabled us to reduce our carbon footprint by more than 216,000 kg of reduced CO2 emissions this year. (using ratio of 0.694 as per Greentech Malaysia at https://www.greentechmalaysia.my/carboncalculator/).

Caring for the Environment
The following projects were created with the aim to reduce the harmful effects to our environment which had been set up among the various subsidiaries within the group.

Project: Recycling of batteries (Application: SDG 15)
Description: An employee program had been set up to dispose of batteries. Improper disposal of batteries are harmful to the environment as they contain materials like mercury and lead that can cause the emission of greenhouse gasses as they decompose in landfills. A collection centre was set up in one of our subsidiaries (ISO) and employees are encouraged to bring their dead batteries for disposal. Shipments have been arranged 2 times per annum to pick up these batteries for proper disposal.

RecycledAmount

Project: 3R Program (Reduce, Recycle and Reuse): SDG 15
Description: Recycling program to dispose of recyclable waste such as plastic bottles, cans, paper. For certain waste such as empty carton, lean frame, tray, empty spool and wooden pallet are returned to supplier or recycle internally. Tray and metal ring are recycled through established cleaning process. Recycling helps to reduce energy usage, reduce the consumption of fresh raw materials, reduce air pollution and water pollution (from land filling) by reducing the need for “conventional” waste disposal and also reduces greenhouse gases emissions.

RecyclableWaste

3RProgram

 

Project: Recycling of paper/mineral water bottle (plastic): SDG 15
Description: GSB has set up a program to encourage employees to recycle paper/plastic mineral water bottle to help in conserving the environment while contributing to the underprivileged. Plastics are one of the major items that is degrading the global environment and we are happy to be able to play our small part in recycling these items. All recycled items are collected and contributed to SIMA Handicapped Centre, as part of our social contribution to the local community by helping them financially in this area. Recycle bins are provided at designated factory areas to conveniently enable contributions from employees.

RecyclingPaper

 

Project: Tree Planting
Description: We have set up a tree planting activity in one of subsidiaries, ISO. The program is set up to create awareness to our employees on the importance of green lungs in urban areas and how to help care for the environment. The gardening activities are expected to reduce carbon dioxide emission in the factory compound, and study shows that as a tree matures (12-24 meters), it can consume 21.9 kg of CO2 per year as it turns that CO2 into parts of itself. Estimated, 1 meter tree can absorb 0.91 kg of CO2 per year, where we have 28 trees of this category.

TreePlanting<

Banning of Plastic Straws and One Use Plastic (Application: SDG 15)

As plastics play an increasingly wide role in global pollution and the disruption of natural life both on land and in sea, the Group have also decided to contribute in our role to reduce waste disposal to the environment. Supporting the government initiatives in this area, we have banned the use of plastic straws in our factories starting April 2019.

One-time plastics have also been banned almost completely (except for the minimal usage for take away of food with gravy) and replaced with more environmentally/recyclable containers for food and drinks. Our employees have been very supportive in this area and are glad to play our part in helping to conserve our environment. While the numbers in terms of weight are not large, it is these small particles that have caused the loss of many marine life.

Summary: Eliminate ~176,000 pcs/96.8 kg of straw usage yearly.
Summary: Eliminate ~21 kg of plastic bag usage yearly.

ECONOMIC (SDG 8,9,12)

ECONOMIC

Business Growth and Diversification (SDG 8)
The goal of most businesses/organizations is to make a profit on a yearly and consistent basis, and Globetronics is no different as making a profit is one of the main keys of survival. Over the years, we have constantly evolved to fit and meet the ever changing requirements of the business environment through a diversification of the products we do, the customers we serve and the manufacturing capabilities we have. While it is not easy, we are humbly pleased to report that we have been profitable for every single year since we started business in Year 1991 and would continue to endeavor to do so in the years ahead through the continued pursuit of new business opportunities, identifying new business trends and improving our manufacturing and development capabilities.

As product lifecycles become shorter due to the rapid technological advancements, the ability to introduce new products to the marketplace in a timely manner has become a very crucial key to success. Our business model is increasingly skewed towards the co-development of new components/products with our customers, that upon mass production, will be a totally new introduction to the market. At any point in time, we have multiple products that are progressively in development stage waiting to be adopted by the customer and market place that will lead to mass production.

The new products we have successfully qualified and started mass production for Year 2019 are:
1) Light sensor for our European customer designed into the latest smart devices.
2) Bio-environment sensor that can detect toxic gasses in its surroundings (small volume build)

On top of this, there are many exciting products that are moving into various stages of qualifications that are targeted to go into mass production in Year 2020, among which:
1) Light sensor for our European customer to be designed into next year’s smart devices.
2) Gesture sensor for bluetooth wireless device.
3) Motion sensor for smart wearable device.

There are also products in discussion stage that could potentially be new products in Year 2020. Some of these products have applications to exciting areas like autonomous driving and bio-sensing for smart wearable devices. These are important parts of our business diversification process where we actively pursue new business opportunities to diversify our customer as well as product base on a continual basis.

New business opportunities are evaluated on a thorough basis by the Board, BORRC and goes through proper risk assessment as per our Enterprise Risk Management Policy. All CAPEX spending are justified using various indicators of ROI, useful life risk and taking into consideration the position of all stakeholders in the company.

Customer Satisfaction ( SDG 12)
Customer satisfaction is one of our key beliefs and we strive to be a good supporter and the business partner of choice to world renowned customers. Providing competitive prices, good quality and timely ramp up are some of the key measurements in being a good partner from our end.

Toward our end, we have also implemented annual customer satisfaction survey in the area of Quality, Delivery, Service and Cost with the following parameters:
Quality    - Return Merchandise Authorization ("RMA"), Effectiveness of corrective action closure, customer disruption
Delivery  - On time delivery, premium freight competitiveness
Service    - Scheduling, technical support, accuracy of report, responsiveness
Cost        - Price competitiveness

The survey would provide our subsidiary heads with the focus areas to improve on (using scoring indicators) and also address any customer concerns highlighted to ensure that we always provide the best service and solutions to our customers.

The areas of focus for the customers revolve around cost as that is a key parameter in order for their products to remain competitive in the marketplace. Production line focus would be in the areas of yield, process improvement, productivity and automation to address this.

Manufacturing Excellence and Continuous Improvements (SDG 9)
The Group puts emphasis on manufacturing excellence at all times, to ensure that all our lines and processes are benchmarked and meet all globally defined manufacturing standards. This is done through regular internal line audits, external audits by independent auditors for quality standards, as well as ongoing customer audits to ensure that our operations comply with all requirements and have continuous improvement plans for our manufacturing lines.

The Group has over the years put in resources to reduce the use of paper in our operations. Our subsidiary company GMT had come up with our own Enterprise Business Operating System (“ebizOS”) system whereby our main business functions are interconnected through this feature. We have expanded our manufacturing capabilities over the years from copy exact type of contract manufacturing work to today where we play a key role and a co-development partner in coming up with manufacturing processes for new products/components that are scheduled to hit the marketplace. Our manufacturing capabilities now include wafer level packaging and flip chip processes for the more advanced components in the market place, wafer saw and sorting for advanced LED products and in the process of qualifying new components for the sensors, smart devices, Internet of Things, health and automotive sectors.

Automation has also been a focus area for us in the last few years. We had implemented automation in our KL operations on a phase by phase basis, with Auto Optical Inspection ("AOI") machines taking over the more labor intensive and strenuous back end manual inspection processes. Our new sensors projects had also implemented AOI, so for the Group serving the dual purpose of reducing the manual portion of the operator’s job and also in supporting the local supply chain by purchasing the AOI from local suppliers.

Industry 4.0 Implementation Plan (SDG 8, 9)
As the next step to achieve manufacturing excellence, the next area of focus for us would be to further automate, link and use live data to improve further the efficiency of our operations. Our plan is to start small pilot lines on our key operations using big data analytics with other new technologies to enhance yield, reduce defects and enable real time monitoring of all the key indicators. The new lines would serve as a benchmark to existing lines, to encompass industry leading and government lead initiatives for companies to adopt Industry 4.0 into their operations.

The pilot lines will most likely be placed in the 25 thousand square feet additional manufacturing space we installed previously which has been utilized for production. This additional space is our commitment to customers in allocating resources for future growth, with the housing of our latest sensors products and NPI lab, linked by a walkway as well as a material flow passage for optimal performance of operations.

Supply Chain Management (SDG 12)
We extend our best business practices into our supplier chain as well with our supplier’s aligning to our core values through the signing of a supplier’s Code of Conduct. The Code of Conduct requires the suppliers to meet our requirements in the following areas:
  • Legal Compliance
  • Prohibition of corruption and bribery
  • Respect for the basic human rights of employees
  • Prohibition of child labor
  • Health and safety of employees
  • Environmental protection

Suppliers are expected to conduct a self-assessment to ensure they are in compliance to these requirements. They are also measured under a Supplier Rating and Ranking system using QCDS (Quality, Cost, Delivery, Service) to ensure that the Group consistently has a reliable and reputable supply chain to provide the best service and support to our customers.

Local Supply Chain (SDG 12)
Being a niche player in the technology space and as part of the global supply chain, we understand that Malaysia has its own competitive advantage with its diverse range of technology companies providing complementary services to big global customers. As these MNC customers have been in operation for many decades, they also have established systems, processes and suppliers whom they work with.

For our part, where possible, we are trying to localize some of the procurement sources. The key area where we have made inroads so far are in sourcing AOI and automation machines from local Malaysian companies when we automate our current production processes or set up new manufacturing lines.

Our procurement practices also play a key role in maintaining the competitiveness of our products in the supply chain. There is a continual effort to find suitable, sustainable and cost competitive materials to complement our product improvement programs as part of our value added solutions to the customer. An example of this would be our supplier bidding program where suppliers bid and are selected after going through the evaluated indicators of cost, delivery, service, regulation compliance/licenses, etc.

Reduce, Reuse, Recycle (Application: SDG 12)
For the Group, the 3Rs are one area where sustainability is a material matter to us. This stems from the fact that we are doing high volume manufacturing, and the potential for waste from material usage to the environment is high.

The initiatives we undertook would serve to have multifold effects, by ensuring our businesses are operating at optimal levels through the efficient use of our resources while at the same time prolonging our equipment and materials from hitting the environment as scrap earlier.

To drive business sustainability, we have embarked on the following initiatives as part of our 3R drive in 2019:

1. Reuse HEPA Filter, Laminar Flow, cabinets from GKL to Penang subsidiaries
Description: The moving of cleanroom and office equipment from our downsized KL operations to our Penang subsidiaries, is an example of how we apply sustainability policies to positively impact the environment and economic factors. Items such as racks, cabinets, computers, cleanroom filters were transferred to be reused instead of discarded which helps to conserve environment (reuse) and also contribute to savings (economic).

Reuse

2. Reclean and recycle phosphor fluid tube adapter
Description: This activity would see us clean and reuse the tube adapters that are used in the production line. Instead of discarding after use, this helps to prolong the useful life and reduce wastage.

Results = About 400 adapter tubes usage per month, able to prolong usage by 3X.

Reclean

Data Integrity and Cybersecurity (SDG 9)
Data integrity and cyber security has become an increasingly important aspect of business operations. This is especially evident in view of the escalating cases of accounting fraud/ scandals globally as well as the recent ransomware virus attack.

The ransomware virus attack had also exposed the vulnerability of many firms globally to cyber attacks. Whilst no system is fool proof against these attacks, the Group is continually monitoring and implementing all the necessary anti-virus programs and firewalls to secure our data. Being part of the global supply chain for components in key electronic devices, the Group needs to ensure a reliable and accurate live tracking of its data to ensure uninterrupted delivery of its production lines.

Since Year 2018, we have begun to re-evaluate the adequacy of our IT systems in terms of software, hardware and server requirements. The review has indicated that some areas require enhancements to be able to meet the stringent requirements of our customers in capturing important data and running some of the latest manufacturing applications. As such, we have embarked on hardware and software replacement cycle for our Group which would be done in phases, with the first phase of hardware/software/servers replacements completed in Quarter 4 2018, and to be followed through additional phases in Year 2019.

As a continuity of our IT systems enhancements in Year 2019, we have upgraded and consolidated our email communication infrastructure in phases to host it under Microsoft Exchange Online (Microsoft Cloud Infrastructure). In terms of email security, Exchange Online eliminate threats before they reach GTB firewall or users with multi-layered, real-time anti-spam and multi-engine anti-malware protection.

Our Wireless Local Area Network (“WLAN”) has also been upgraded with improved internet speed of 10X. This is an important first phase to ensure that our efforts of Industry 4.0 and using live data and analytics have the proper infrastructure to support it.

Next phase focus would include network segmentation and segregation to limit impact of network intrusion and virus outbreak, and also making it harder for intruders to hack into the system.

SOCIAL (SDG 3,4,5,8)

SOCIAL

Employees
We have a total headcount of approximately 1,300 employees in our Group. As a niche player in the very competitive technology industry, being a responsible and caring employer to our very important assets, our employees remain one of our key priorities. We strive to provide a safe, conducive and growth environment for everyone of our employees and this can be tracked through the various indicators listed.

Employee Health and Safety (SDG 3,8)
We strongly believe that human capital is the most important value to an organization. To ensure a safe and healthy working condition for our employees and support workers, the Group has developed guidelines to safeguard employees in all of its business operations. Our Environmental, Health and Safety (“EHS”) team which is a part the ESG Committee ensures that health and safety policies are effectively implemented and continuously improved. Our EHS management system are reviewed against international best practices and updated from time to time.

To safeguard employees and instill the values and knowledge essential to a safe and healthy workplace, we continuously undertake first aid training, health talks, fire drills and plant evacuation exercises. All safety incidents are shared in the ESG Committee to ensure no recurrence occurs, and key learning of new safety implementations are also shared. Despite the actions taken to reduce safety incidents, there was unfortunately an increase in the factory accident rate and fire incident rate compared to Year 2018. There were 3 fire incidents during Year 2019 which were all caused by burned transformers. Factory accidents and near misses were mainly due to the negligence of the employees. Cause of incidents and action plans to ensure no recurrence for both cases were shared in the ESG meeting. These were not repeat incidents, but however the team is not satisfied and is committed to reduce both the factory accident and fire incident rate for Year 2020. At the Group’s manufacturing locations, we have continued to ensure that equipment and building systems are functioning properly and are well maintained.

EmployeeHealthandSafety 

EmployeeHealthandSafety1

Human Capital Development (SDG 4)
One of our key corporate responsibility initiatives is the development of human capital as our employees are our greatest asset. The development is achieved through the implementation of various initiatives such as in-house cross training and employees’ productivity improvement, building university relationships and encouraging workplace diversity. The ultimate aim of these objectives is the unity of all employees in striving for a common objective i.e. the success of the Group in terms of economic, social and environmental development. Our employee evaluation criteria have also been revamped over the years and we have put in place comprehensive evaluation systems that not only measure the hard skills but also the soft skills of employees like relationship building and charisma, to build them to be highly marketable in any industry.

We have also committed to do a 100% appraisal of all employees on an annual basis to ensure alignment to the Company’s key performance metrics and values, to provide career path guidance and to obtain feedback from employees on their view of the Company. This commitment has been achieved in the current year as well as the previous 3 years, with appraisal criteria consistently being improved and matched to best industry practices. These appraisal sessions are also important as an avenue for identifying the right candidates to head the respective leadership roles within the Group of Companies.

In terms of nurturing future leaders, many programs have been put in place that include both general and specific targets of key employees at various levels in the Company. The leadership programs are conducted when there is a sufficient pool of identified candidates, some of the established programs we have conducted include the Leadership Development Program, Managerial Development Program and mini MBA.

We invested a total of 185 training programs and spent a total of RM257,000 for human capital development in Year 2019, with 1,782 training hours for 3,803 employees achieving the following:

- 70 new courses were conducted in Year 2019 to upgrade our people’s competency levels to new products and technologies, with exposure as follows:

NewCourses

Employee Welfare (SDG 3,8)
Fostering better ties with our employees and improving their quality of life are areas that have continuously been given importance in the Group’s corporate responsibility initiatives. We have tailored specific programs to cover a holistic representation of our employees welfare in the areas of health awareness, sports and food. The programs we have carried out in Year 2019 are as follows:

People Program
3 festive celebrations (Chinese New Year, Hari Raya Aidilfitri and Deepavali) being carried out in-house withgood response and participations.

Sports and Recreational Activities
Weekly zumba and badminton sessions have been coordinated to achieve work life balance. Good turnout for both events.

Sponsored our employees and family members for the GLO Walk 2019 to promote healthy lifestyle and as part of our charity sponsorship.

SportsandRecreationalActivities

Health Activities
Below health awareness activities were carried out FREE for our employees:

Health talks, blood test, eye check, DNA test, dental check, general health screening and road safety campaign.

Health

 

Food Quality, Hygiene and Facilities
- Healthy food corner being introduced on weekly basis to promote healthy eating, selling salads and non-fried items.
- Upgraded the canteen gas piping and cooking system to ensure safe and conducive cooking environment.
- Monthly canteen audit being carried out to ensure local council’s requirements are met.

Other Benefits
In terms of working flexibility, we have introduced time off programs for employees who have to put in overtime during the periods when there are urgent requests by customers.

Employee recognition programs have also been put in place to reward key contributors through cash and gifts, and meal treats have been given out to all employees as a token of appreciation for their contribution and efforts.

Department outings or annual dinners are done on an annual basis to create closer bonding for our employees.

Starting in Year 2020, the Penang City Council has started to impose parking fees for cars parked on the roadside of the Free Industrial Zone. As some of our employees park on the roadside due to the limited parking lots within the factory premises, the facilities team have creatively added more than 20 parking lots which would ensure that all employees have a parking spot within the premises. If there is still a need for the employee to park outside due to unforeseen circumstances, they would be provided with a parking coupon.

Workforce Diversity (SDG 5)
Globetronics believes in tapping the resources of a diverse workforce that utilizes the unique gift of each individual. Presently our workforce is made up of multiple nationalities that include Malaysians, Indonesians, Filipinos and Nepalese and we have a male to female ratio of 23 : 77. We are also proud to say our leadership is also balanced, with women making 31% of positions of manager and above.

WorkforceDiversity

Our recruitment process is based solely on merit and the qualification of the candidates, and our remuneration policy assures that no pay distinctions are made in regards to gender or ethnicity in all our subsidiaries.

The various ethnic groups are respected and harmony is promoted with the celebration of the various cultural festivals in Malaysia together. For Year 2019, we had 3 celebrations which are Chinese New Year, Hari Raya Aidilfitri and Deepavali with good response and participation from all employees.

Human Rights
Globetronics is committed to upholding and respecting human rights of all employees, and we have published human rights policies of notice boards with indicators being reviewed on a monthly basis. We are in compliance with the relevant law and regulations for our operations, and some of our human rights commitment are as follows:

  • Freely chosen labor: no forced labor or slavery, original travel documentation held by employees.
  • Avoidance of child labor: no hiring persons under 18 years of age.
  • Non-discrimination: Hiring based on merit, no harsh and inhumane treatment.
  • Policies against sexual harassment, fraud, bribery and corruption with proper reporting channels.

We had an independent sustainability audit conducted by Zumbotel Group on behalf of our customer in July 2019. The audit represented a good independent review of our sustainability efforts as area covered were wide and included:

Ethics - Business integrity, code of conduct, fair business, responsible sourcing.
Labor - Freely chosen employment, child labor avoidance, working hours, freedom of association, nondiscrimination.
Health and Safety - Occupational safety, emergency preparedness and response, injury and illness, machine safeguarding, dormitory and canteen.
Environment - Permits, pollution prevention, energy usage, product content restrictions, hazardous substances, wastewater and solid waste, noise and air emission.

Result shows that we are on the right track with a good score on our sustainability front, scoring an A for the audit.

Social contributions and community projects
As a home grown Malaysian company, we are aware of how important it is to build up the local community and to provide opportunities for the upcoming generation to succeed. The focus of our social contributions is directed on the basis of achieving current impactful goals to community building and nation through the sponsorship of relevant initiatives and programs.

With Penang becoming an increasingly important technology hub in the region, we have put more focus in playing our part to create technology interest and talent pool needed to support the companies and industries operating in Penang. This can been seen through our social focus that is geared toward related areas like promoting Science, Technology, Engineering and Mathematics (“STEM”) and Penang Tech Centre, along with the sharing and participation in relevant technology forums.

In Year 2019, we were actively involved and contributed in various community and education projects:

6 partnership and sponsorship projects being carried out in Year 2019, namely,

* Sponsorship of RM10,000 to Penang Tech Centre for the GLO Walk 2019.
* Sponsorship of RM12,000 to Penang STEM for the STEM Carnival 2019.
* Sponsorship of RM1,000 to Konsulate General of Penang for the Merdeka Celebration for Indonesian community in Penang.
* Sponsorship of RM2,000 to Penang STEM for the “Future Engineering Development” summit.
* Sharing on Technology Roadmap and SME Opportunities in Industry 4.0 @ MTDC Technology Conference and Exhibition 2019.
* Scholarship Program:
    - Sponsorship of RM60,000 to 1 Malaysian student studying Electronics Engineering in Volgograd State Technical University, Russia.  Target to complete the Degree program in July 2020.

Overall, we aim to bring a balanced but targeted approach in supporting our local community from the contributions to various local societal organizations and academia to make the community we operate in a better place.

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