Keong Hong : Sustainability Report 2022

S U S T A I N A B I L I T Y R E P O R T

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K E O N G H O N G H O L D I N G S L I M I T E D

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C O N T E N T S

1. Chairman and Chief Executive Officer's Message
2. Organisation Profile

1. About This Report
2. Sustainability Strategy Overview

1. ESG Performance Highlights and Awards

1. Stakeholder Engagement and Materiality Assessment

1. Governance and Ethics

1. Quality and Innovation

1. Our Environment

1. Health and Safety

1. Our People

1. Supply Chain Management
2. Our Community

1. GRI Standards Content Index

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C H A I R M A N A N D

C H I E F E X E C U T I V E O F F I C E R ' S M E S S A G E

Dear Stakeholders,

As pressing issues like greenhouse gas emissions and pollution of our lands and oceans gain greater prominence due to the devastating effects they are having on our climate and environment, governments are striving to take concerted efforts through international treaties and agreements. The Paris Agreement on climate change signalled a significant step forward in the goal to reach net-zero by the middle of the 21st century. Singapore's own Green Plan 2030 and Zero Waste Masterplan are part of our national efforts to reach the set aims for environmental preservation.

Organisations, the government and individuals have their respective roles to play in bringing about change. In isolation, we cannot make much of an impact but with concerted efforts, change can come about swiftly and effectively. For our part, we have aligned our business focuses with those of the United Nations Sustainable Development Goals ("UN SDGs"). The attainment of the UN SDGs is a continuing global effort and forms part of the Group's long-term focus on sustainability. With those goals in mind, we have embodied sustainable practices throughout our organisation, touching on the key areas of minimising our impact on the environment, enhancing the wellbeing of employees and development of communities, and strengthening governance by upholding principles of accountability, transparency and integrity. We have put in measurable annual targets for monitoring and tracking. I am pleased to report that we have, for the most part, maintained or bettered our performance in FY2021 as we strive towards achieving our goals.

I am pleased to highlight a few of our initiatives, some of them ongoing, some new. As far as minimising our impact on the environment is concerned, we have also begun to install solar panels to provide low-carbon energy to our operations in our Chin Bee Factory. Likewise, at the Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort, we have installed and started operating a solar energy system. We have adopted "Green and Gracious" policies which aim to reduce, reuse and recycle construction waste and material so as to minimise environmental pollution; use natural resources such as energy and water efficiently; and communicate and encourage adoption of such practices by our partners, clients, suppliers and interested parties. From simple measures that are easily and quickly implemented, such as introducing waste segregation on our worksites to facilitate recycling, to more complex procedures such as harnessing new technology and sustainable material to reduce reliance on natural materials, Keong Hong is making every conscious effort to imbue a culture of sustainability and environmental awareness throughout our ecosystem.

Technology has played a major part in our sustainability efforts, increasing efficiency and productivity in our operations and offering new solutions to reduction in emissions and waste. We minimise construction waste by harnessing advanced technology. We have upgraded our digital capability in Building Information Modelling, Virtual Design and Construction and Virtual Reality. These technologies pre-empt costly abortive works by first identifying clashes in a virtual environment before the project is actually built. High standard of workmanship and quality of works are also achieved through implementation of Design for Manufacturing and Assembly technology like Prefabricated Prefinished Volumetric Construction and Prefabricated Bathroom Unit by shifting work to a sheltered and controlled environment. We will continue to invest in enhancing our capabilities through the latest applicable systems.

We continue to put people and community as a focus of our sustainability efforts ensuring that we are in full compliance of the Work Safety and Health Act. In fact, we place great importance on worker safety, health and well-being. We continue to support the larger community by sponsoring educational awards and contributing to selected charities.

In recognition of our efforts, we were awarded the Green and Gracious Excellence Award from the Building and Construction Authority in 2021. We were also accorded the prestigious RoSPA (Royal Society for the Prevention of Accidents) Health and Safety Gold Award 2022, in recognition of our achievements in health and safety management systems and culture. In keeping with this award, we are continuing to embody the spirit of award in our practices and in our dealings with others, especially the community.

Changes in the SGX reporting requirements as regards organisations' sustainability efforts and climate related financial disclosures signal the importance of these issues going forward as green financing assumes a more prominent role in capital flows. We are well-prepared to comply with these forthcoming requirements, given our early adoption of such practices.

It leaves me to thank our stakeholders, especially our business partners, suppliers and customers, in journeying with us with faith and confidence in our sustainable strategy and principles. With their continued support, our sustainability efforts are certain to gain momentum and strength.

LEO TING PING RONALD

Chairman and Chief Executive Officer

Keong Hong Holdings Limited

K E O N G H O N G H O L D I N G S L I M I T E D

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O R G A N I S A T I O N

P R O F I L E

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Keong Hong Holdings Limited ("Keong Hong" or "the Group") is listed on the Mainboard of the Singapore Exchange Securities Trading Limited. The Group's principal activities include building construction, property and hotel investment and development. Its building construction services include a broad range of residential, commercial, institutional, industrial and infrastructural projects for both private and public sectors. The Group also has property and hotel development and investment projects in Singapore, Japan and Maldives.

The Group made its maiden foray into property development in Singapore in 2012 through a joint venture with Frasers Property (formerly known as Frasers Centrepoint Limited) to develop Twin Waterfalls Executive Condominium. Its subsequent residential developments include SkyPark Residences, The Amore, Parc Life, Seaside Residences and The Antares.

Keong Hong also ventured into hotel development and investment in 2013 with Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort in Maldives. In Singapore, the Group has equity interest in various joint hotel and mixed-use development projects - Hotel Indigo Singapore Katong, Holiday Inn Express Singapore Katong and Katong Square.

In 2016, the Group acquired the first of its two commercial properties in Japan.

Led by a qualified and experienced management team with a staff strength of close to 470 employees, Keong Hong has built a strong reputation and record of accomplishment over the last 39 years for its commitment to quality and service standards. Keong Hong is a member of Singapore Contractors Association Limited as well as one of the founding members of the Singapore Green Building Council.

Building and Construction

Keong Hong is a provider of a broad range of building construction services to both private and public sectors for residential, commercial, institutional, industrial and infrastructural projects. ​

The Group's innovative technologies and technical capabilities, supported by our commitment to quality, safety, timely delivery and customer service, are our key strengths that differentiate us from our industry peers, and is the reason for our ability to secure projects from our repeat clients.​The Group has pioneered several innovative technologies and processes in the construction industry that are widely used today, such as the Silent Jack-In Spun Piling System in Residential project and Intelligent Computerised Auto-Climb Peripheral Platform.

Leveraging on our technical capability and a vast array of experience gained over the years, Keong Hong has morphed into a Design and Build main contractor capable of taking on complex projects with full responsibility in design development for Structure, Mechanical & Electrical Services. For hotel and resorts development, our expertise extends to include Architectural design.

As a Design and Build main contractor, we have been able to extend our job horizon beyond that of conventional construction projects. We have established ourselves as a reputable main contractor with proven capability in the Design and Build of Condominium Projects, Hotel and Resorts Projects, Alternative Design using Top-Down Construction Methodology for Complex Basement for Commercial and Institutional Projects. Our design and build and construction expertise are often harnessed through our joint ventures to create value added propositions that have won us many development projects, for example, SkyPark, Amore, Parc Life, Seaside Residences and The Antares.

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Listed below are some completed projects involving Design and Build and their design scope in the past decade:

Completed projects in the past decade - By Year of Temporary Occupation Permit Obtained

•	Martin Place	•	Raf•es	•	Pullman
	Residences
2011 •	2018	Hospital	2019	Maldives
Condominium
Extension	Maamutaa
SIM University
	Extension	•	Parc Life EC		Resort

				•	Amore EC		Not applicable in
					2020 when
2014	•	Park Hotel	2017	•	Mercure	2020
Singapore
	Alexandra		Maldives
							implemented

Kooddoo	circuit breaker

2015		Waterfalls	2016		EC	2021		Residences
	•	Twin		•	Sky Park		•	Seaside

Listed below are the Group's on-going and recently completed building construction projects:

		Year of Temporary
		Occupation Permit
Project	Sector	Obtained		Remarks
The Antares	Residential	December 2022	•	A Housing Development Joint Venture, with Keong Hong
				taking a 35% stake. K.H. Land (subsidiary of Keong
				Hong) is the Main Contractor, leveraging on its design
				and build experience and capability to offer value-add
				for the Joint Venture partners.
			•	First K.H. Land project to use UHPC Prefabricated
				Bathroom Unit ("PBU") developed by joint venture
				company K&H Innovation Systems Pte Ltd.
Wilshire Residences	Residential	2023 (estimated)	•	Another residential project with K.H. Land as the main
				contractor.
			•	UHPC for our PBUs developed by joint venture company
				K&H Innovation System Pte Ltd will be installed in this
				project.
National Skin Centre	Medical/Healthcare	Phase 1C: Quarter 1 2023	•	Keong Hong's first advanced precast project using
		Phase 2: End 2023		precast columns, precast beams, precast hollow core
		(estimated)		slabs and in-situ concrete topping.