Keong Hong : Sustainability Report 2023

SUSTAINABILITY REPORT 2023

CONTENTS

1. Board Statement
2. Organisation Profile

06 About This Report

07 Sustainability Strategy Overview

1. ESG Performance Highlights and Awards
2. Stakeholder Engagement and Materiality Assessment

13 Governance and Ethics

16 Quality and Innovation

20 Our Environment

34 Health and Safety

39 Our People

1. Supply Chain Management
2. Our Community
3. GRI Standards Content Index

0 2 KEONG HONG HOLDINGS LIMITED

BOARD

STATEMENT

Dear Stakeholders,

Keong Hong Holdings Limited ("Keong Hong" or "the Group") is now in its 6th year of formally reporting its sustainability efforts although the Group has always held sustainability, corporate social and environmental responsibilities as important principles which underpinned our business operations.

In this report, we have set out our key initiatives, both new and continuing, which are driving our overarching ESG strategy and priorities. Our sustainability framework was developed to address seven priorities categorised into environmental, social and governance areas. These priorities also aligned closely with the United Nations Sustainable Development Goals ("UN SDGs"), the ongoing attainment of which is a global effort and which is an integral part of our Group's long-term sustainability focus.

The Board has been closely involved in the sustainability journey, considering sustainability issues such as environmental, social and economic topics that were identified by the Sustainability Task Force ("STF") as part of the Group's business strategy formulation. The Board members have attended ESG courses as part of our sustainability training, which have given us a strong grasp of matters such as ESG developments, value-creation through sustainability and the latest updates and requirements for sustainability and climate-related risk reporting. This, aside from regular interactions with the STF to ensure that the Group is on track to achieve our long-term sustainability objectives, has enabled us to remain immersed in the Group's sustainability journey.

We are proud to report that the Group has attained new milestones in its sustainability efforts. With respect to our environmental priorities, innovation continued to be a key driver in our efforts to minimise our environmental impact. We completed the installation of solar panels on the rooftop of our Chin Bee Factory this year. The installed panels will provide low-carbon energy to our factory operations and will potentially provide excess solar energy to the electrical grid. We are also tapping on solar energy to power noise meters and traffic warning signs. With the use of solar energy, we aim to further reduce carbon emissions due to energy use in our factory. We expect to realise an energy output of 6.1 million kWh over the next 12 years, leading to energy savings and helping the Group realise our environmental sustainability goals. While there may be areas where we have fallen short of our targets, we will be working hard to attain our targets for FY2024, barring unforeseen circumstances beyond our control.

The report sets out in great detail all our sustainability goals, efforts, achievements, benchmarks and targets in accordance with required reporting standards set out by the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Rules 711A and 711B and internationally recognised Global Reporting Initiative ("GRI") Standards together with its latest Universal Standards 2021. Allow us to highlight some of the more notable achievements for FY2023.

We have committed using Green Financial Facilities for our green projects namely the Addition and Alterations ("A&A") works to Grand Hyatt Hotel Singapore which will help in the attainment of Green Mark Platinum. We adhered to the Green Loan Principles as prescribed by the Asia Pacific Loan Market Association in the key aspects regarding the use and management of proceeds, processes for project evaluation and selection and reporting.

Protecting biodiversity continues to be key in our environmental preservation efforts. Our efforts in this area are largely concentrated in the Maldives where we continued to maintain the corals at our corals nursery and those transplanted to our Ocean Villas and Aqua Villas. We are happy to report that our coral nursery is healthy, thriving and exhibiting a vibrant ecosystem with flourishing coral colonies. A wide variety of coral species and a diverse fish community have inhabited the area, contributing significantly to the preservation and promotion of biodiversity in the area.

Our social priorities include the health and safety of our workers, commitment to the wellbeing and skills development of our people as well as community efforts and outreach. Worker health and safety were emphasised through programmes such as our quarterly Safety Award day for all personnel to celebrate safety milestones and reward individuals who demonstrate exemplary workplace safety behaviour and contribute to project safety. We continued to upskill and reskill our workers through programmes such as our CoreTrade and multi-skills training which covers 35% of our workforce to ensure that their full potential is realised. Gender, racial and age diversity figured prominently in our efforts to build an inclusive workplace, where ideas, contributions and efforts are valued and rewarded. With 112 employees with more than 10 years of service, which is 21.2% of total employees as of 30 September 2023, this is a testament of the Group's exemplary labour management.

We are deeply committed to the betterment of society and have supported educational and training programmes by local tertiary institutions such as offering traineeship opportunities since 2018 to ensure a future generation of talented workers in the building and construction field.

The Board remains committed to overseeing and guiding the Group's sustainability efforts. We will endeavour to keep striving for new achievements in all our sustainability focus areas.

We would like to conclude by extending our appreciation to all our partners, business associates, customers and other stakeholders who have journeyed with us, and continue to do so, towards a sustainable future.

Board of Directors

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ORGANISATION

PROFILE

Keong Hong Holdings Limited ("Keong Hong" or "the Group") is publicly listed on the Mainboard of the Singapore Exchange Securities Trading Limited. The Group's core 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 and Maldives.

The Group first ventured 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.

Under the guidance of a qualified and experienced management team with a staff strength of more than 500 employees, Keong Hong has built a strong reputation and record of accomplishment for its commitment to quality and service standards over its 40 years history. 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 offers a wide range of building construction services to both private and public sectors for residential, commercial, institutional, industrial and infrastructural projects.

The Group's distinguishing strengths are our innovative technologies and technical capabilities, supported by our commitment to quality, safety, timely delivery and customer service. These underpin our continuous ability to secure projects from our repeat clients. The Group has pioneered several innovative technologies and processes in the construction industry that are widely adopted, such as the Silent Jack-In Spun Piling System in residential projects and Intelligent Computerised Auto-Climb Peripheral Platform.

Drawing upon our extensive technical expertise and years of accumulated experience, Keong Hong has evolved into a Design and Build main contractor capable of taking on complex projects with full responsibility in design development for structure, mechanical and electrical services. Additionally, our proficiency in hotel and resort development encompasses architectural design.

As a Design and Build main contractor, we have successfully expanded our job horizon beyond that of conventional construction projects. We have cemented our position as a reputable main contractor, demonstrating our expertise in the Design and Build of condominium projects, hotel and resort projects, alternative design using Top-Down Construction Methodology for complex basement for commercial and institutional projects. Our Design and Build capabilities, coupled with our construction expertise, are often harnessed through our joint ventures to create value added propositions that have won us many development projects, for example, SkyPark Residences, The Amore, Parc Life, Seaside Residences and The Antares.

0 4 KEONG HONG HOLDINGS LIMITED

ORGANISATION

PROFILE

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

•	Park Hotel	Project compleon
was delayed
2015 •	Alexandra	when Singapore	2021
Paterson	2020 implemented
	Collecon	Covid-19 circuit
		breaker

•	J Gateway	•	Pullman
2016 •	ResidencesSkyPark	2019	MaamutaaMaldives	2022
•	The Amore		Resort

•	Mercure	•	Raffles
2017	KooddooMaldives	2018	ExtensionHospital	2023
	Hotel	•	Parc Life

• Seaside Residences

• The Antares
• Naonal Skin Centre (Phase 1)
• Wilshire Residences
• Sky Everton

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

		Year of Temporary
		Occupation Permit
Project	Sector	("TOP") Obtained	Remarks
National Skin Centre	Medical/	Phase 1C: TOP obtained	▪ Keong Hong's first advanced precast project
	Healthcare	6 February 2023	using precast columns, precast beams, precast
		Phase 2: Q3 2024	hollow core slabs and in-situ concrete topping.
		(estimated)
Grand Hyatt Hotel	Hospitality	Phase 1: Q1 2024	▪ Additions and alteration works to existing Grand
Singapore (a Green		(estimated)	Hyatt Hotel Singapore consisting of 21-storey
Mark Platinum project)		Phase 2: Q4 2024	Grand Wing and 12-storey Terrace Wing with
		(estimated)	4 basements car-park.
			▪ Involving major retrofitting to the guest rooms
			and restaurants and upgrading of Mechanical
			Electrical Plumbing ("MEP") plant rooms and
			equipment.
Sky Eden @ Bedok	Residential/	Q4 2025 (estimated)	▪ Project requires basement wall and raft
	Commercial		slab to be retained. Foundation designed to
			be strengthened with underpinning using
			micropiles. Project is targeted to achieve Green
			Mark GoldPLUS Award.
Solitaire on Cecil	Commercial	Q3 2026 (estimated)	▪ Demolition of existing building. Existing basement
			wall to be retained. Using top-down approach for
			the construction of 20-storey office building with
			two basements. Precast columns and hollow core
			slabs are used for the construction of officer
			tower. Project is targeted to achieve Greenmark
			(Platinum) Award.

PROPERTY DEVELOPMENT

Keong Hong began our ventures in property development from 2012 and has since developed six residential projects in Singapore. Our strategic approach of partnering with well-established property developers to collectively undertake residential development projects enables the Group to leverage on shared resources with business partners and manage any business risks associated with property development projects.

Property	Type	Ownership
Twin Waterfalls	Executive condominium	20%
SkyPark Residences	Executive condominium	20%
The Amore	Executive condominium	15%
Parc Life	Executive condominium	20%
Seaside Residences	Private condominium	20%
The Antares	Private condominium	35%

0 6 KEONG HONG HOLDINGS LIMITED

ABOUT THIS

REPORT

REPORTING PERIOD AND FRAMEWORK

The Group upholds its commitment to sustainability with the publication of its annual sustainability report. The Report covers the Group's sustainability performance for the financial year from 1 October 2022 to 30 September 2023 ("FY2023").

This FY2023 Sustainability Report is the 6th report of Keong Hong. It has been prepared in accordance with the internationally recognised Global Reporting Initiative ("GRI") Standards and its latest Universal Standards 2021 and in compliance to Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Rules 711A and 711B. We have also referred to the United Nations Sustainable Development Goals. The GRI standards were selected as it is one of the universally recognized sustainability reporting standards that is recommended by the SGX-ST and represents the global best practices for reporting on economic, environmental and social impacts. The sustainability report focuses on the material topics identified and is issued with the approval of the Board and shall be read in conjunction with the other sections of the Annual Report, and other sustainability-related disclosures.

The following principles have been applied to determine relevant topics that define the report content and ensure quality of information:

1. GRI principles for defining report content: Stakeholder Inclusiveness, Sustainability Context, Materiality and Completeness;
2. GRI principles for defining report quality: Accuracy, Balance, Clarity, Comparability, Reliability and Timeliness.

The report also incorporates the primary components of report content as set out by the Singapore Exchange Securities Trading Limited ("SGX-ST")'s "Comply or Explain" requirements on sustainability reporting under Listing Rule 711B. We have also considered the recommendations of an external Environmental, Social and Governance ("ESG") consultant for the selection of material topics. To improve comparability, the material topics have been benchmarked against selected industry peer groups.

REPORTING SCOPE

This Report focuses primarily on operations directly managed by the Group which include Building and Construction and Property Development in Singapore. As the managing agent of the investment in Maldives and through the continuous collaboration with the hotel operator in Maldives, this report will also include Keong Hong's biodiversity and conservation efforts in Maldives.

Operations in Maldives, involving procurement, hiring and employee training are also not included in this report as Keong Hong is not involved in the day-to-day operations.

RESTATEMENTS

Two restatements have been made for the Group's FY2022 Emissions Intensity and Water Intensity values, respectively. Please refer to Our Environment: Energy and Emissions and Our Environment: Water and Effluents for more information.

ASSURANCE

Internal controls and verification mechanisms have been established by management to ensure the accuracy and reliability of narratives and data. We have also considered the recommendations of an external Environmental, Social and Governance ("ESG") consultant for the selection of material topics as well as compliance with GRI Standards and SGX Listing Rules. To improve comparability, the material topics have been benchmarked against selected industry peer groups. The Group has incorporated the sustainability reporting process as part of internal review by our internal auditors, as required by SGX-ST Listing Rules 711B.

AVAILABILITY AND FEEDBACK CHANNEL

This Report and previous editions are available on SGXNet and online at https://www.keonghong.com.

We welcome feedback from our stakeholders to assist us in improving our reporting and sustainability practices. Questions or feedback on this Report can be directed to: [e-mail].

Detailed section references with GRI Standards can be found on the GRI Standards Content Index.

SUSTAINABILITY REPORT 2023 0 7

SUSTAINABILITY

STRATEGY OVERVIEW

OUR MISSION

To be a forward-looking company with a commitment to corporate social responsibility, built on a strong foundation of transparency, governance and ethics that creates value for our stakeholders.

OUR VISION

To build a better world in an environmentally sustainable way and to improve the quality of the environment and the communities where we live and work.

OUR ESG STRATEGY AND PRIORITIES

In line with the material topics identified, we have developed a sustainability framework that will guide our efforts in addressing seven core priorities, in the areas of corporate governance, environment as well as social, to address the needs of our stakeholders.

Environmental priories:

• Our Environment
• Quality and Innovaon

	Enhance	Social priories
		Health and Safety
Minimise	wellbeing of
	Our People
employees and
impact on
development of		Supply Chain Management
environment
communies		Our Community

Strengthen governance by upholding principles of accountability, transparency and integrity

Governance priories

Governance and Ethics

Please refer to section "Stakeholder Engagement and Materiality Assessment" for identification of material topics.

Strengthen governance by upholding principles of accountability, transparency and integrity

Keong Hong supports the principles of accountability, transparency and integrity advocated by the SGX-ST. The Board of Directors and management are also committed to uphold the Group's governance framework. As part of the Board's oversight on ESG, it approves the Group's sustainability initiatives which are being reported to the Board on a regular basis.

Minimise impact on environment

As a part of our commitment to sustainability, we have obtained Green Financing Facilities for all new projects commenced in 2023. We adhere to the Green Loan Principles as prescribed by the Asia Pacific Loan Market Association in the key aspects regarding the use and management of proceeds, processes for project evaluation and selection and reporting. In addition, the Group has completed the installation of solar panels on the rooftop of our Chin Bee Factory, which will deliver renewable solar energy to the factory, further reducing the carbon emissions due to energy use at the factory. This arrangement is expected to yield a guaranteed energy output of 6.1 million kWh over the next 12 years, leading to energy savings and helping the Group realise our environmental sustainability goals.

The Group has maintained a reputation in Singapore and Maldives, within the building, construction, and hotel management sectors. The Group has effectively seized expansion opportunities, achieved new revenue streams and harnessed fresh capabilities and possibilities, all while remaining committed to its sustainability objectives. Keong Hong has also been commended for adopting highly innovative solutions in our construction projects to reduce wastage, increase efficiency and enhance productivity.

In addition, the Group remains firmly dedicated to preventing pollution and injury in all its construction operations. We are committed to providing customers with reliable, prompt and quality service at a competitive cost. We strive to provide quality products and services to meet customer requirements through timely project completion, adherence to relevant legal and regulatory standards, quality workmanship, good safety standard and minimising our environmental impacts.

0 8 KEONG HONG HOLDINGS LIMITED

SUSTAINABILITY

STRATEGY OVERVIEW

Keong Hong is conscious of the impact that our projects have on the environment and shall continue monitoring and measuring these impacts. The Group will uphold our energy saving standards and invest in technologies to improve waste management and reduce emissions and effluents.

Enhance wellbeing of employees and development of communities

The Group continues to ensure that our employees are motivated to excel and rewarded for jobs well done, such as through the Building and Construction Authority's ("BCA") Construction Quality Assessment System ("CONQUAS") Incentives. Additionally, the Group strives to ensure both racial and gender diversity in our workforce to provide unique perspectives on issues that the Group faces.

Further, the Group will continue in its support for charitable organisations, striving to improve the well-being of the community.

CONTRIBUTION TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

The Group's business focuses are aligned with 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. The Group's contributions to the relevant goals are highlighted below.

							Relevant Sections
	Relevant UN SDGs	The Group's Position		in the Report
				Goal 3: Good Health and	Prioritise employee's health and safety in our	▪	Health and Safety
				Well-being	daily operational work.	▪	Our People

Goal 6: Clean Water and	Manage waste and effluents responsibly before ▪ Our Environment
Sanitation	discharging into water bodies.

				Goal 7: Affordable and	Generate solar energy at a larger scale for
				Clean Energy	use at Maldives resorts as well as Chin Bee
					Factory and, on a smaller scale at project sites
					for all instrumentation noise and clean water
					discharge monitoring.
				Goal 8: Decent Work and	Provide work opportunities and a conducive	▪	Health and Safety
				Economic Growth	working environment to the local community.	▪	Our People
						▪	Our Community

Goal 9: Industry, Innovation	Make use of environmentally responsible	▪	Quality and
and Infrastructure	construction techniques. Work continually to		Innovation
	build and upgrade infrastructure to increase	▪	Supply Chain
	energy efficiency as well as resource efficiency.		Management

SUSTAINABILITY REPORT 2023 0 9

										Relevant Sections
	Relevant UN SDGs	The Group's Position	in the Report
								Goal 11: Sustainable Cities	Provide employees with a safe and sustainable	▪ Our People
								and Communities	living environment.

Goal 12: Responsible	Reduce waste generation through recycling and ▪ Our Environment
Consumption and	reuse, and monitor water, energy and diesel
Production	consumption on a monthly basis.

Goal 13: Climate Action	Reduce emissions according to organisational	▪ Our Environment
	capacity. Strengthen resilience and adaptive
	capacity to climate-related risks and
	opportunities.

Goal 14: Life Below Water	Protect marine biodiversity and coastal
	ecosystems. Actively manage any adverse
	impacts caused by human activities.

Goal 15: Life on Land	Preserve inland water and forest ecosystems
	and protect natural flora and fauna in the
	Maldives.

Goal 16: Peace, Justice and Strong Institutions

Comply fully with all socio-economic and environmental laws and regulations.

• Governance and
  Ethics