INTRODUCTION

Oriental Holdings Berhad (“OHB”) recognises the need to place a firm commitment towards corporate social responsibility (“CSR”) and sustainable development activities, of which stems from fundamental principles of good corporate governance and striking a harmonious synergy between corporate pursuits and social obligations.

OHB remains committed to the community, environment, customers, employees and stakeholders. OHB aims to foster not only positive community relationships, but also help create sustained economic growth by building human and institutional capacity from our operational sectors.

Highlights of CSR initiatives carried out by the respective Group operational sectors for 2010 include the following:

THE COMMUNITY

At OHB, community development and care activities are recognised as one of the most important corporate priorities with various community activities carried out across the Group’s business operations during the financial year 2010.

During the year, Bayview Hotel Melaka pledged to donate RM1 for every postcard sales with the theme of ‘Thinking of You from Bayview’. Besides, a total of RM23,780 was raised from the charity buffet lunch and also charity car wash organised at the hotel façade for Seck Kia Eenh Cancer Fund. In addition, the blood donation campaign was conducted at yearly basis in collaboration with Hospital Melaka. Kah Australia also participated in the donations for local sporting clubs, hospital and attended fund raising charities such as Cancer Council, Daffodil Day, Gold Week Charity Event and so on.

On 16 June 2011, Bayview Boulevard Sydney received the 2011 Australian Hotel Association Award for Outstanding Community Service and Achievement, this award is highly recognized throughout the Industry and is a testament to Bayview International Hotels and Resorts Corporate Mission Statement to the Community.

The automotive industry continued to contribute toward fund raising activities of the employees' unions of Royal Malaysian Police, Bomba Malaysia and the National Trade Unions.  Kah Motor sponsored one (1) unit of Honda Civic Hybrid in the ‘Win a Honda Civic Hybrid’ Lucky Draw Contest which organised by the Community Chest in the fund raising for ComChest to help over 340,000 needy individuals. They also took part in the GEMS programme under Khazanah Berhad by offering employment to those who are not employed.

In Indonesia, the Group's plantation companies continued to provide financial assistance to village schools and maintaining estate school’s football field which is used by the local communities. The group involved various community activities to improve the well being and foster a good and harmonious relationship with the local community.  Such activities included scholarship, donations to public events, schools, temples, neighbouring mosques of the estate, sports events organised by neighbouring villages, contributions towards annual independence celebrations and giving out food packages during Hari Raya to the less privileged.

THE ENVIRONMENT

OHB Group has carried out a number of initiatives to reduce the environmental impact from our business operations.

OHB’s hotels and resorts segment carried out recycling projects all year round to recycle bottles, newspapers, and other paper products. The hotels and resorts installed energy saving globes, participated in government initiated Water Map program and recycled rain water through rain water tanks.  In addition, hotels and resorts segment also supported the Earth Hour 2010 on 27 March 2010 from 8.30 pm to 9.30 pm.

Kah New Zealand has obtained National Standard Gold Environment Awards in 2010 for the environment efforts implemented.

In house waste water treatments plants are also practiced by manufacturing sector to ensure effluent discharge from the factory complies with the Environmental Quality Act 1974.  Operational improvements such as reducing effluent discharge, daily industrial waste and lowering energy and material usage were carried out.

The plantation operations initiated recycling projects in the estate to promote greater awareness of the environmental health and needs.  The biological control of rats with the introduction of barn owls has helped in doing away with usage of pesticides.  Planting of beneficial flowering plants to control insect pests and protect against leaf eating caterpillars and bag worms.

Those employees who are assigned to handle hazardous chemicals and schedule waste are highly trained in respect of proper usage of Personal Protection Equipments (PPEs), proper handling of materials and emergency response plan in case of accident, spillage or fire in accordance to the Occupational Safety and health Act 1994.

THE WORKPLACE

OHB Group employs a significant number of employees in both its domestic and overseas operations. The employees are highly appreciated and are provided with various staff benefits such as annual awards, health insurance and medical care.

The employees are encouraged to develop on both personal and professional level through the conduct of external and in-house training to enhance employees' knowledge and skills at all levels of employment.