Pelepas Insight 2022 1st Issuance

INTERNAL NEWSLETTER VOLUME 01/2022

2 0 2 1 T O T A L R E G I S T E R E D T H R O U G H P U T V O L U M E

11, 200, 245 TEUs M A L A Y S I A ’ S

L A R G E S T

C O N T A I N E R

T E R M I N A L

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CONTENTS 2

From The Desk of CEO

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Highlight 11 Million TEUs Celebration

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Special Feature Company wide 2022 KPI

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Transformation - Feature What is transformation maturity?

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Transformation - Safety Guiding Leadership

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Transformation - Digitalization IT Digitalization 2021 - In Progress

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Project Integration The IPSUM Magna Programme Optimising PTP's Terminal Footprint: 2021 Q4 Update

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Port Optimization Feature Ops Improvement Initiatives

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Engineering & Facilities Feature 2021 Overview

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Human Capital Management Feature Getting To Know PTP's Strongest Bond

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Supply Chain Feature Standardization of Technical Evaluation Criteria (TEC) and Key Performance Indication (KPI) in Tender Safety Campaign Inventory Cost Reduction Corporate

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Legal & Compliance Digital Technology In The Fight Against Non- Compliance

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Corporate Social Responsibility Volunteerisms in Environment, Sustainability and Governance

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Up Close & Personal With Datuk Jaafar Mohamad, Advisor to CJ Century Logistics Holdings Berhad

From the CEO's Desk Happy New Year and my warmest greetings as we begin 2022.

I hope you’ve had a good start to the year. I wish you all the best for the months ahead.

2021 was an amazing year for us despite all the challenges we faced. In particular, we became the first port in Malaysia to successfully surpassed the 11 million teus mark and subsequently registered a total volume throughput of 11.2 million TEUs or a 14.5% growth as compared to 2021.

A special celebration was held to commemorate the milestone starting with staff celebration on the 30th December 2021, followed by the celebration for our stakeholders on the 7th January 2022.

I certainly enjoyed my time during the staff celebration, meeting many of you at the food festival and enjoyed various local and international dishes, listening to live music and having a chat with colleagues from different levels and divisions.

As for the stakeholders’ event, it was also a success as the objectives set forth were met accordingly. The positive feedback and congratulatory remarks from the guests, particularly from both the Minister of Transport and Menteri Besar of Johor had certainly helped us to analyse and strategize better on our business moving forward.

Congratulations Team PTP!

Speaking of moving forward, 2022 is set to be another exciting year for us. We can look forward to working further on the many initiatives to deliver the best services and business experience to stakeholders.

In this issuance, apart from we share with you exciting stories and pictures taken during both 11 Million TEUs Staff Celebration and Stakeholders Event, you will also get to see and understand the direction that PTP is heading this year with content focusing on our business objectives, strategies and initiatives. This information is vital for you to set your mindset and strategies as we gear up to accomplish our set target for 2022.

So please take some time to read and enjoy this issuance. We will share more information moving forward but if you have ideas or suggestions to improve our very own internal newsletter, I trust you can engage with the editorial team accordingly. There is always room for improvement!

Before I end foreword, I want to thank you again for your continued commitment and effort. Every one of us has an important role to play in the work ahead and I’m confident that together we will achieve great things.

I wish you and your loved ones a happy and successful 2022!

Marco Neelsen

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First container terminal in Malaysia to surpass 11 million TEUs throughput volume in a year

Milestone was recorded on 25th December 2021 at approximately 10.00 am during the loading process at Maersk Amazon

Total volume of 11.2 million TEUs at end of 2021, representing an increase of 14% growth

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7 JANUARY 2022 | BERTH 14, PTP TERMINAL YARD

“At the time when other ports around the world are still reeling from the impact caused by various business and operational issues due to the ongoing COVID 19 pandemic, rising freight costs, port congestions, vessel blockages, equipment and manpower shortages and many more, PTP has shown great resilience in navigating through these challenges.”

Datuk Seri Ir. Dr. Wee Ka Siong, Transport Minister

“PTP has a very good track record not only in the local maritime and logistics industry but also for its success in developing the surrounding community, especially in the Gelang Patah area.”

Dato' Ir. Hasni Mohammad, Johor State Chief Minister

“This latest milestone has put us as the LARGEST CONTAINER TERMINAL IN MALAYSIA, further establishing ourselves as one of the top 15 ports worldwide.

More importantly, with our growth and the growth of Port Klang, it is a testament how important and resilient the Malaysian Maritime and Ports Industry is.”

Marco Neelsen, Chief Executive Officer, PTP PELEPAS INSIGHT

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"Congratulations to PTP for achieving more than 11 Million TEUs. We hope that cooperation and synergy between Health Department and PTP will continue to last.

Hopefully PTP can maintain this excellence in the years to come."

Dr Mohamad Fikri Haikal Ahmad Kamal, Medical Officer International Entrance Unit Johor Bahru District Health Office

"I'd like to take this opportunity to congratulate PTP team for this excellent achievement of reaching 11.2 million TEUs in 2021, this is the first port ever in Malaysia to achieve such a success."

Md Derick Basir, Chief Executive Officer of Johor Port Berhad

"Congratulations PTP for the 11 million TEUs celebration.

I’m confident that together with Maersk for this year 2022 and onwards we can achieve more"

Siti Asma’ Abd Gani, Port Performance Manager, Maersk

"On behalf of Johor Port Shipping and Forwarding Association, I would like to congratulate PTP for becoming first port in Malaysia to surpass 11 million TEUs handling mark, we are soo proud of PTP and wish them all the best for year 2022 and many years to come. Well done!"

Stephanie Lim, President of Johor Ports Shipping and Forwarding Association

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t n e v E n i Ma

CELEBRATION 7 JANUARY 2022

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Staff

CELEBRATION 30 DECEMBER 2021

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SPECIAL FEATURE

PELABUHAN TANJUNG PELEPAS SDN BHD

2022 COMPANY WIDE KPI

Volume

Revenue from local cargo

PMPH Feeder

PMPH Mainliner

CUSTOMER & BUSINESS GROWTH

OPERATIONAL OPERATIONAL EXCELLENCE EXCELLENCE

GMPH Mainliner

GMPH Feeder SUSTAINABLE SUSTAINABLE DEVELOPMENT DEVELOPMENT

FINANCIAL SUSTAINABILITY FINANCIAL SUSTAINABILITY

Sustainability Strategy Initiatives Net Results

Strategy Smart Tech & iOT Initiatives

Transformation Maturity

EBITDA Margin

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TRANSFORMATION | FEATURE

WHAT IS TRANSFORMATION MATURITY? A set of comprehensive criteria that measures the capability and capacity of process, people and technology of an organization to deploy and sustain changes.

2.08 2.74 2021 TRANSFORMATION MATURITY ACHIEVEMENT

2022 TRANSFORMATION MATURITY TARGET

The score indicates that our leaders led an ecosystem through a well-coordinated engagement that elevates our people readiness, which is key to achieving our common set of goals

TRANSFORMATION MATURITY IMPLEMENTATION WORKSHOP All Divisions Alignment achieved based on divisional strategic focus and priorities Focused on the outcome and value creation for divisions Results: Integrated plans to achieve the 2022 PTP Transformation Maturity score target Created meaningful connections through a collaborative approach to drive adoption on foundational lean tools and operating system elements

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TRANSFORMATION | FEATURE

CONGRATULATIONS NORAIN JOHARI, OUR PTP WOW HERO 2ND HALF 2021!

Lean Level 4 certified Successfully ensuring Lean, Kaizen, and OS are embedded in EFD Produced multiple ideas on how to improve EFD performance in terms of Asset Utilization which impacted GMPH improvement, cost savings,and safety improvement Helped to develop fellow colleagues and 7 EFD staff graduated Lean Level 4

.

"We want to be better, but we need to know the best way to be better.

Changes are inevitable and we should not be afraid to embrace changes. We need to transform our way of working by improving our process and behaviours to be at par with other competitors"

Lean Academy is proud to announce that in 2021, many of our colleagues have graduated from various levels as per following;

LEVEL 1 GRADUATES

LEVEL 2 GRADUATES

2,026

618

LEVEL 3 GRADUATES

LEVEL 4 GRADUATES

159

20

TOTAL

2,823

Do you want to make a difference?

Transformation Department is ready to help you facilitate a culture change.

Please feel free to contact Mr. Lee Chin Earn at lee.chinearn@ptp.com.my to know more!

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TRANSFORMATION | SAFETY FEATURE

GUIDING LEADERSHIP Since 2020, PTP has embarked on a 5-year Safety Transformation Plan journey. Being in the 3rd year of the safety transformation journey, PTP has successfully sustained and reached various milestones such as recruiting safety ambassadors, cultivating proactive and courageous leadership, focusing on strategic process confirmation, and inculcating overall safety culture improvement. To further embed safety into PTP’s ways of working, among the leader-led programs that have been implemented are:

SAFETY REWARD AND RECOGNITION Established in Q2 2021 in Engineering and Facilities Division and later in Operations Divisions in Q4 To recognise safety behaviors that lead to significant improvement in performance or are directly involved in safety incident preventions Examples of behaviours that fall into this category include: Identification and implementation of a safety improvement opportunity that delivers a step-change result (safety idea/kaizen) Prevention or avoidance of a probable serious incident through direct intervention Consistent demonstration of safety leadership well beyond that of the peer group In 2022, this Safety Reward and Recognition program will roll out in phases across other divisions in PTP.

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TRANSFORMATION | SAFETY FEATURE

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TRANSFORMATION | SAFETY FEATURE

SAFETY ENGAGEMENTS Operations and HSSE division together collaborated on several safety activities: Commencement of a bi-weekly engagements program with lashers, focusing on key incidents sharing and learnings as well as critical safety controls while working onboard Road Safety Campaign was organized where PM operators were briefed on the Do’s and Don’ts while driving through visual standards during their shift change To further support this programs, Joe Schofield, PTP COO and several Head of Departments lead and participated these safety engagements

HEALTH AWARENESS PROGRAMS Organized a virtual health talk on “Heart Health and Heart Attack Awareness” by Dr. Lim Geok Seim of Johor Bahru District Health Office on 26 November 2021 Participated by more than 100 PTP staffs To inculcate awareness of heart health Organized a health screening program with Kensington Green Hospital at Port Briefing Room, Wisma A Free checkups on blood pressure, glucose level and spirometry test

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TRANSFORMATION | DIGITALIZATION FEATURE

IN PROGRESS Part 1 : IT Division Supporting Digital Transformation, Smart Technology and IoT The current PTP IT Division encompasses the most basic of Information Technology mainly focusing on infrastructure and application technology to solve business or organizational problems on a broad scale.

A modernized IT technology solution increasingly focuses the us of Smart Technology, data analytics and integrating with enterprise management systems. IT in smart technology and IoT also includes network, cybersecurity, cloud-based platforms and integrates with other cloud-based and on-premises applications.

Bridging the gap in Digital Transformation, Smart Technology and IoT are critical to the success of IT overall operating strategy. A strategic improvement was established to focus on customers, business and employees too :

OPERATIONAL EXCELLENCE Allow PTP to streamline work processes and improve communication, thereby helping PTP employees and customers to save time and making day to day operations much more efficient.

POTENTIAL NEW PRODUCTS, SERVICES AND TECHNOLOGY MODELS Modernizing and building a strong foundation that helps PTP to discover better business models and identify new types of products and services to offer to the customers. Without adopting new IT solutions, PTP’s products and services are likely to grow stale. Costumers demand constant innovation, especially as technology continues to evolve to match their ever-changing needs and desires.

EXPANSION AND GROWTH Ensure PTP’s services have a clear and focused purpose and IT Division are aware of their role in achieving that goal.

Encourages suitable levels of investment, which leads to cost savings and increased levels of investments for key projects. It also makes sure that investment priorities are shifted to ensure that effort and budget are expended on the areas which have the highest level of business impact.

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TRANSFORMATION | DIGITALIZATION FEATURE

Thus, the new ways of working with a structured objective that is aligned between technology initiatives and business goals.

TECHNICAL ARCHITECTURE Technical Architect designs the structure of PTP IT systems and oversee programs to ensure the proper architecture is implemented.

Understand PTP’s needs by defining system specifications, plan and design the structure of a smart technology solution.

SMART TECHNOLOGY Serve as the strategic interface with assigned business units or functional areas for the purpose of business technologies strategy development, solution discovery, service management, risk management and relationship management.

Responsible for planning, organizing, and managing the information technology processes in PTP. Responsibility also entails internal system development and implementing IT strategies to meet the business needs.

TECHNOLOGY ECOSYSTEM MAINTENANCE AND SUPPORT Responding to technical and functional queries and issues, resolving problems in a timely manner, and providing technical recommendations. Provide exceptional customer service, perform user administrative responsibilities efficiently and with cybersecurity considerations.

Managing the application lifecycle, knowledge of certain principles in coding, support and collaboration efforts related Terminal Operating System (TOS), Enterprise Resource Planning (ERP) and other PTP production systems.

Part 2 : Wisma B – Level 1, IT Digital Transformation, Smart Technology and IoT Lab Currently in renovation, the centre brings a collaboration between IT and business communities together.

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Aims to create an environment that has access to latest technologies for the business communities, provide education, support, and aid in sharing knowledge interactively

TRANSFORMATION | DIGITALIZATION FEATURE

Fosters the introduction and assimilation of research and leading-edge technology in real life

An area to host events and forums to generate technology familiarization, foster, source, and enable innovation

Builds and supports interaction and association to help talents connect to expensive resources for co-innovation in order to execute ports changing ideas with a defined focus on localization, improving quality of experience and quality of life by the use of emerging technologies

KEY PROJECT PROGRESS DATA LAKE AND ANALYTICS INCLUDING CENTRE OF EXCELLENCE - IN PROGRESS

Making data available to the whole organization, is called data democratization. With the correct data readily available, PTP staffs may now make viable decisions at any level along with deep learning algorithms provided in real-time decision analytics.

ASSET DIGITALIZATION - COMPLETED

As part of the Port Automation System, which provides a complete transparency of live operational and engineering status of all equipment via a live 3D augmented view, thus allowing PTP’s Operation Team to execute operations proactively.

MARINE RESOURCE MANAGEMENT SYSTEM - IN PROGRESS

Revolutionise and enabling the improvements to PTP Marine services which include pilotage, towage, billing and mobility functions.

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TRANSFORMATION | DIGITALIZATION FEATURE

LABOUR MANAGEMENT SYSTEM - IN PROGRESS

Integrated set of processes that a Business Owner – OPS, ENG and HSSE uses to optimize the productivity of its employees. LMS involves effectively forecasting labour requirements by creating and managing staff schedules to accomplish a particular task on a day-to-day basis.

NAVIS RTG OPTIMIZATION – IN PROGRESS

TOS module that will support in reducing the dependency on human skills variance and optimally dispatch the RTGs to serve the quay cranes on time.

The estimated efficiency of this product should impact positively the overall RTG performance, and consequently improve the quay cranes productivity.

CYBERSECURITY PTP is adding an additional layer of cybersecurity measure by introducing MFA for easy and secure sign-ins for all PTP email users. In short, MFA reduces the risk of cybersecurity breaches drastically, and sensitive data stays protected always – In Progress EMAIL SECURITY Email anti-spam and anti-phishing are used to prevent malicious contents/threats from being delivered via email. These tools scan email messages, content, and attachments for potential threats and then filter or block suspicious messages from being delivered – Completed VULNERABILITY ASSESSMENT AND PENETRATION TESTING (VAPT) A security testing to identify security vulnerabilities in an application, network, endpoint, and cloud. Both the Vulnerability Assessment and Penetration Testing have unique strengths and are often collectively done to achieve a complete analysis. Vulnerability Assessment scans the digital assets and notifies organizations about pre-existing flaws - In Progress

BUSINESS CONTINUITY MANAGEMENT TOOLS – COMPLETED A tool to manage all phases of the business continuity management (BCM) life cycle, from planning to crisis activation.

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PROJECT INTEGRATION FEATURE

The Ipsum Magna programme continues to progress with several completed and new ones added to support the optimisation of the existing terminal footprint.

The Steering Committee, led by the CEO, continues to meet up at least twice a month to review the progress of each initiative and deliberate new ones that will have a positive impact on the programme.

COMPLETED INITIATIVES

Purchase and delivery of 33 prime movers (batch 2) All units were delivered in November 2021 to support the increase in volume that is expected from 2022 onwards

7 IMPSA-A QC Gearbox Compensation by the contractor who carried out the upgrade of the IMPSA-A QCs to handle twin-lift operations at 61 tonnes

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PROJECT INTEGRATION FEATURE

ADDITIONAL INITIATIVES

Technical assessment of RTGs 58 RTGs from PTP’s current fleet are due for a mid-life refurbishment. To determine the economic and technical viability, a technical assessment will be conducted before next steps will be decided

Purchase of 25 new single-lift RTG’s To support the projected increase in volume from 2022 onwards, a total of 25 single lift 40 tonne RTGs will be purchased

Purchase of 3 QCs to modernise lower berth set-up As part of the 2nd phase to replace the lower berth cranes, 3 x ZPMC-A cranes will be replaced

MAJOR ACHIEVEMENTS Purchase of 3 x QC + 25 x RTGs in December 2021 The Board of Directors approved the purchase of 3 x QC + 25 x RTGs in December 2021 The procurement process to source for the equipment commences in January and the contracts are expected to be awarded by Q2 2022

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PORT OPTIMIZATION FEATURE

Several improvements were generated to ensure continuity of performance for Operations Division and providing competitive services to customers

Autostow Implementation improved vessel planning quality and reduced quality variation

RTG Optimizer collaboration with Navis.

Automates both job sequencing and dispatching.

Thus improving suboptimal decisions made by dispatcher or RTG operators

Expert Decking Enhancement improved space utilization and reduce rehandles

Asset Digitization (AD) all terminal equipment and QC equipped with AD. Reduces waste and enforcing discipline

Prime route Using GPS Data reduced unladen distances, decrease PM cycle, and improve PM productivity and GMPH by 0.3

Auto Job Stepping Enabled 100% of PM drivers to confirm their jobs automatically resulting in more than 100 seconds gained before next work

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PORT OPTIMIZATION FEATURE

Additional Reefer Plug New reefer yard block with portable gensets activated with capacity of 100 containers

Labour Management System (LMS) Transform from manual workforce planning to a comprehensive LMS incorporates Forecasting of workload and required staff Involvement of employees in the scheduling process Work time management Analysis and monitoring of the entire process Currently awaiting exco approval prior awarding the contract to chosen vendor and aim to start early 2022 Empty Yard Extension New container yard at Block 16 to 18 (Row J-M) specifically for storage of empty containers The yard will be constructed as a flat area with an estimated capacity of 18,000 TEUs operated with the Empty Handler (EH) Each block will be equipped with E-RTG infra sub-structure if needed to be upgraded in the future based on laden volume growth Kaikaku Kaizen Prime Mover Operator (PMO) Shift Change – provide average 155 moves during 6 hours of shift change Rubber Tyre Gantry Operator (RTGO) Shift Change – planned to be implemented in Q1 2022

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ENGINEERING &FACILITIES FEATURE

Achieved the highest Mean Move Between Failure (MMBF) and Availability record in the history of PTP for all Equipment Through streamlining the preventive and corrective maintenance to increase the reliability of the equipment

Successfully secured more Prime Movers (PM), Trailers, Empty Handlers (EH) with the support and good coordination with other divisions

Exceeded 2021 TCO/GRI target of RM 10.6 million for TCO and RM 0.1 Mil for GRI as final amount achieved was RM22.5 million

Kaizen increased team performance as EFD started looking at the routine activity, evaluations, process confirmation, factoring safety elements, to be more competitive, reduce downtime, cost control, technology exchange and knowledge sharing

33 Total Kaizen

24 PTP Level Kaizen

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ENGINEERING &FACILITIES FEATURE

SCADA SYSTEM FOR WATER RETICULATION Eliminating leakages that impact cost became a priority and investment was made to minimise losses and traceability of the usage on utilities Provides full control and monitoring on the overall utilities’ usage throughout port area PTP improved Non-Revenue Water (NRW) significantly and reduction of NRW from 30% to 9%

SAFETY LED GUIDE LIGHT New pilot project has greatly improved the safety for overhead crane system at the Trailer Repair Bay located at Engineering building

LED VS CONVENTIONAL LIGHTS Energy Saving Initiative in early 2021 managed to save RM437,193.55 electricity cost (validated by Finance as Nov’21) which is equivalent to carbon footprint reduction of 879,455.15 kgCO2

NEW STP OPERATION AND CONTINUOUS IMPROVEMENT Operation of 35,000 PE STP ​ Installation of early detection water quality sensors that triggered alarm without waiting for lab test result​ Upgrading of RAW Sewage Pump Controller

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HUMAN CAPITAL FEATURE

MANPOWER EXCELLENCE SDN BHD (MESB) Manpower Excellence Sdn Bhd (MESB) is a wholly-owned subsidiary company by PTP

Leverages several key Government Agencies initiatives such as with Penjana, Perkeso and MITI schemes to provide employment opportunities for Malaysians

Principal activities involves, ~ manpower supply for position of Prime Mover (PM) driver, On Board Clerk (OBC) and lasher ~ Ensure all related PM operating activities and lashing activities running in order and smooth

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HUMAN CAPITAL FEATURE

Recruitment statistics increased up to 10.7 times since commencement Recruited 2,326 employees as of December 2021

Created employment opportunity for all Malaysians

Promoting diversity by employing more female recruits in fields dominated by male counterparts

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SUPPLY CHAIN FEATURE

Value Stream Mapping Workshop (VSM): Standardization of Technical Evaluation Criteria (TEC) and Key Performance Indicator (KPI) in Tender Four (4) sessions Involved all Divisions To brainstorm and develop a standard fundamental structure, set objectives and criteria of TEC Result: - Reduced the Contract Risk & Cost - Able to identify the competent vendors - Increase contractor’s sustainability

Conducted in Sept-Oct 2021 To promote awareness on Safety Throughout Supply Chain Division 14 participation amongst SCD Staffs from Procurement & Tender Department, Material Planning Department, and Warehouse Department Poster design was evaluated by a panel of juries from SCD and HSSE Muhammad Nazmi Ishak was selected as the winner for The Best Safety Poster Design Competition Winning poster displayed in PTP Wisma A and DW4 Warehouse vicinity area

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SUPPLY CHAIN FEATURE

Inventory Cost Reduction Reducing inventory cost since Q4 2019 Reduction of inventory mainly due to - optimize spare parts purchasing - remove duplication items code from 20,186 to 16,100 - liquidation of obsolete, non-moving and damage parts Storage area is utilized at the optimum level where used space is reduced from 100 000 sqf to 60 000 sqf

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CORPORATE | LEGAL & COMPLIANCE FEATURE

DIGITAL TECHNOLOGY IN THE FIGHT AGAINST NON-COMPLIANCE Some of the ways in which Digital Technology can help in the fight against non-compliance activities are:

Distributed Ledger Technology (DLT) The ability of DLT to efficiently store data in a decentralised system provides enhanced security and transparency in transactions, as no one can illegitimately alter the data stored in the blocks.

Opportunities Enable a new trust mechanism in the system Diminish the role of intermediaries, who may not be trustworthy keepers of personal information Help determine the actual beneficial owners of the companies and prevent money laundering

Challenges A platform for illicit transactions, e.g.

Non-Fungible Tokens (NFT) involving the company's data and other criminal activities Complexity of DLT may hinder investigations and asset recovery May present potential risks of data leakages

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CORPORATE | LEGAL & COMPLIANCE FEATURE

Machine Learning Tools (MLT) MLT associated with sensors and other computer programmes to sense, comprehend, and act on the world, learn from experience, and adapt over time

Opportunities

Challenges

Identify and predict potential corruption issues by digesting diverse data sets Increase the efficiency and accuracy of due diligence Identify loopholes within regulatory frameworks

Constrained by the decisions and values of those who design them and their intended goals for use Risk of being unfair, and may amplify social biases and cause discrimination Inhibits the system transparency, explainability, and interpretability

Big Data Analytics Digital technology enables employees to utilize big data to assist in targeted change and reforms and understand trends and patterns relevant to non-compliance enforcement Big data analytics helps provide patterns and evidence of fraud or other acts of corruption

Opportunities

Challenges

Improved monitoring, supervision and enforcement of policies

Ensuring the effective integration of data analytics into day-to-day activities

Identify, analyse, and prevent risks, including corruption, fraud, waste and abuse

Institutionalise data-driven approaches

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CORPORATE | CSR FEATURE

VOLUNTEERISM Remember that the happiest people are not those getting more, but those giving more

Not everything that is done must be paid. Volunteerism requires a heart to serve.

There is incredible value in being of service to others.

Personally, being a volunteer boost my self-confidence and self-esteem.

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CORPORATE | CSR FEATURE

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CORPORATE | CSR FEATURE

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UP CLOSE & PERSONAL WITH...

DATUK JAAFAR MOHAMAD ADVISOR TO CJ CENTURY LOGISTICS HOLDINGS BERHAD

Can you briefly share your personal and work background?

My journey in the industry started by accident. Growing up, I was more inclined towards becoming a policeman since my late father was a decorated police officer. As the son of a police officer, life was very regimented, and selfdiscipline played a key factor in shaping my personality.

When I was 18, I was still keen to be a policeman, but my mother did not consent to it.

This is because when my father was still in service, he was very active fighting the communist insurgency and had to be in the field most of the time. So, my mother did not want to go through the same experience with me.

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Feeling a bit disappointed, I then decided to go to Kuala Lumpur to live with my sister for a while. It was in Kuala Lumpur that I was first introduced to a job in logistics industry by my football buddy who had told me about a job opening in Port Klang.

I first started my career in 1976 in a British based company, Inchcape at Port Klang as a taxation clerk before moving to Oriental Shipping, a local trading company few years after.

In 1980s, timber business was booming, and because of that, my company had decided to invest in the business by procuring its own bulk vessel and given me the responsibility to manage the operation.

My time managing timber operations was really challenging but also exciting.

Those days, timber logs were mostly outsourced from Sabah, often from places deep in the vast jungle. Since technology was not as good as today and the timber bulk operations were mostly manually, I had to constantly be on the ground to look after the business. That also means that I had to go deep inside the jungle, driving for hours on an off-road route before having to ride a boat for another few hours to arrive at the timber logs gathering area.

Upon arrival, I had to ensure everything is as per schedule and in accordance including administering the timber quality inspection, calculating weight of each timber, grading, supervising timber arrangement on vessel and many more.

After Oriental Shipping, I was invited to join Evergreen Group as a partner to the consortium.

Local containership business was aggressively expanding and there were a lot of demand from the market. With the expansion, the government also decided to bring in and nurture more local players in the industry. Together with my mentors, Mr. Leslie Eu the first Managing Director of MISC and Dato Dr. Mohamed Amin Kassim, we formed our local Evergreen agency (Green Peninsula Agencies Sdn Bhd.)

After the establishment of Evergreen local agency, I helped to start Century Logistics local office in Johor in 1997. In 2005, Century Logistics built its first warehouse to serve as a distribution center and in 2007, the local office in Johor was relocated to PTP and continue building our warehouses.

What was the most challenging obstacle you have experienced throughout your working experience?

There were a lot of challenges that we had to face during the early days of the business set up, working round the clock and without proper resources.

Despite that, we had never given up and instead put more efforts to our cause. The first big break came when we successfully managed to bring in vessel sailing to Johor Port with twice weekly sailing and soon after tripling it to three times a week and the rest is history.

What are the Leadership Principles that you have discovered and executed that have contributed to your success?

During the early days, technology was also not as advanced as it is today.

Everything had to be done manually and at time repetitively for a single order received.

There was no handphone or gadget that we can use to track goods from afar. I remember when I was in Port Klang, I had to hitch a ride on a bike with strangers just so I could send out a document to client’s office. I must say that with the technology that we have right now, processes or activities become more efficient and effective.

The purpose was that in the event of an emergency, all of the staff will be able to get out immediately and safely.

One thing I learned was that there is no harm to follow or copy any good practice if it will improve the organizations.

One example visiting an oil found out that were in reverse

is when I was & gas refinery, I all of the vehicles parking

Those days, the word logistics or supply chain has not even existed or widely known. Each company would play its own role without clear segmentation as we know today. It was very much focused on either shipping agency, forwarding, and warehousing – all on their own and never together as what we called today a supply chain or logistics.

When I was with Evergreen, I worked very closely with the associations such as the Chinese Chamber of Commerce, the Malay Chamber of Commerce, the Indian Chamber of Commerce, furniture association, timber associations and we put in a lot of effort to go down to the ground to have dialogues with them to improve and promote our services on the supply chain eco-system.

I agreed with the reason and when I got back, I immediately imposed the same condition to my staff in CJ Century.

Aside to that, in leadership, there is no way to please everyone. We often rely on respect, clear sense of direction and good synergy with the other party to accomplish our assignment. Some people may like my style, and some may not like it.

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It is therefore up to me to show leadership and put the things on the table and discuss about it as clear as possible.

When an agreement is reached, everyone will have stick to it and execute with no finger pointing. Always find a good solution for all problems. There is no ‘bad proposal’ from other people. Take the time to value and evaluate it as it could be good.

For example, in early 2004, when Prakash, Head of Commercial Division of PTP called me and offer to relocate our company from Johor Bahru to PTP, my partners and I came to agreement and agree to take up the challenges. We worked around the clock for almost 6 months to complete the first warehouse.

Naturally, there were many agreement and disagreement happened throughout the process as everyone wanted the best of the situation.

However, with close working relationship, strong working etiquette and support from the government authorities, everything went smooth and we successfully managed to complete the project.

Can you share some life advice for readers of Pelepas Insight?

I always believed that when it comes to leadership, it is the people around you. Take this analogy for example, it is like you are on a bus journey and you are the bus driver. On the way to your destination, you will be picking up passengers.

As a bus driver, you are responsible towards the safety of your passengers and ensure the destination is reached.

Those passengers are your people and you are their leader.

For you to reach at your destination, you must make sure you get the right people on the bus and putting the right people in the right seat. If I put the wrong people on one side of the bus it will cause an unbalance. Therefore, you need to spread the load evenly and discover the best of a person, the process is not immediate, but if you take the time, you will discover great talent.

Life is a journey and not a destination. God created all of us with a purpose and intention. Whenever you get into a situation, work hard and overcome it.

What is your view on the working relationship between CJ Century and PTP? In your opinion, what are the roles that both parties can play to further improve the success of Pelepas Free Zone?

I've always emphasized that we must treat each other not as business associates but as business partners. PTP will not be where PTP is today if not because of the support of the people who are inside – the staff, the customers. We may have our challenges, but in these difficult times, we need to support each other.

For CJ Century and PTP, we have been in a longterm working relationship. Now when we go out, we are not only marketing CJ Century but PTP services as well. I believe that the business relationship that we have today will continue to achieve both parties’ vision and mission. .

PELEPAS INSIGHT

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PELABUHAN TANJUNG PELEPAS (328719-K) Blok A, Wisma PTP, Jalan Pelabuhan Tanjung Pelepas, TST 507, 81560 Gelang Patah, Johor Darul Takzim

www.ptp.com.my

PELEPAS INSIGHT is Published by CORPORATE AFFAIRS DEPARTMENT