Staying Resilient IN THE NEW NORMAL ANNUAL REPORT 2020 WE ARE ALL IN THIS TOGETHER Malaysia continues to be affected by COVID-19, SuriaGroup has pledged to assist communities across Sabah in response to the hardship caused by the COVID-19 pandemic. RM 1,020 1,000,000 families were provided with food contributed to Sabah State packages in various villages Disaster Fund. across Kota Kinabalu. RM RM Waiver 39,800 30,000 of storage rent donated to Sekolah donated to Osimal Foundation for all cargoes across 8 ports Kebangsaan Kawiyan Ranau for for enhancement of medical from 18 March 2020 until water and sanitation project. facilities at Hospital. 12 May 2020. TABLE OF CONTENTS 002 - 041 CORPORATE OVERVIEW AND PERFORMANCE 002 Corporate Profile 003 Our Vision, Mission & Core Values 004 Business Segments 006 About this Report 008 Our Integrated Reporting Journey 010 Chairman’s Statement 016 How We Create Value 020 Risk and Opportunities 024 Management Discussion and Analysis 037 Group’s Performance 5-Year Financial Highlights 040 Group Corporate Structure 041 Corporate Information 042 - 050 OUR Scan the QR code or visit our website www.suriagroup.com.my/investor- LEADERSHIP relations/ to download our Annual Report 2020. 042 Board of Directors 043 Board Committees 044 Board of Directors’ Profile 050 Executive Management Committee Members’ Profile 097 - 129 134 - 259 HOW WE ARE FINANCIAL STATEMENTS GOVERNED & OTHERS 057 - 095 SUSTAINABILITY AND 097 Statement on Corporate 134 Financial Statements Governance 248 List of Properties HIGHLIGHTS OF THE YEAR 113 Additional Compliance 251 Shareholders’ Information Information 254 Notice of Annual General 057 Sustainability Statement 114 Statement on Risk Management Meeting 088 Highlights of Corporate & and Internal Control 257 Statement Accompanying Investor Relations Events 129 Audit Committee Report Notice of Annual General 091 Suria’s Achievements in 2020 Meeting 093 Suria in the News 259 Administrative Guidelines 095 Share Price and Volume Traded • Proxy Form 2020 CORPORATE PROFILE Incorporated in 1983, Suria Capital Holdings Berhad (Suria) has risen steadily into a diversified entity. Listed on the Main Market of Bursa Malaysia Securities Berhad since 1996 (Stock Code: 6521), today Suria and its subsidiaries – collectively known as SuriaGroup, work in synergy to deliver quality services in the areas of Port Operations; Logistics and Bunkering Services; Property, Seaport Passenger Gateway and Construction. 002 Suria Capital Holdings Berhad Corporate Overview and Performance OUR VISION, MISSION Our Leadership & CORE VALUES Sustainability and Highlights of the Year How We Are Governed Financial Statements & Others To enhance the To be a reputable investment corporation long-term value of in the region that creates value through the Group by: diversified businesses in ports and logistics, port-related projects and other CREATING sustainable returns related ventures. to our shareholders. ACHIEVING excellence in all our business OUR undertakings. MISSION ENRICHING OUR the lives of our employees. VISION EMBracING best practices in our business processes. OUR CORE VALUES whilst always caring for the environment and community within which we operate. SERVICE UNITY OF RESPECT INTEGRITY ACHIEVEMENT EXCELLENCE PURPOSE Providing Working together Value and care for Upholding the Strong excellent services as one cohesive our employees, highest ethical commitment to act to our customers. team to achieve community and conduct and and accomplish our missions. the environment. good corporate desired results governance. through innovation and creativity. Annual Report 2020 003 BUSINESS SEGMENTS PORT SERVICES Sabah Ports Sdn Bhd (Sabah Ports), a wholly-owned subsidiary of Suria, officially took over the management and operations of key ports in Sabah from the State Government of Sabah through Sabah Ports Authority via privatisation exercise on 1 September 2004. Sabah Ports operates eight (8) ports Sabah Ports offers a wide spectrum strategically located throughout Sabah of port services comprising berthing, at both sides of East and West coasts storage facilities, container and of the State. With the port acquisition, general cargo handling facilities as Sabah Ports focuses mainly on the well as the provision of labour force streamlining of port operations, to its port users and customers. acquisition of new modern cargo handling equipment, planning and A subsidiary of Sabah Ports, S.P. Satria undertaking of new cargo handling Sdn Bhd (S.P. Satria), was set up to facilities as well as manpower procure port equipment and spare development including training of its parts to support the port business manpower in its mission to assure and and its five (5) service centres located provide the best services to all port at the major ports at Sapangar Bay users and customers. Container Port, Kota Kinabalu Port, Sandakan Port, Lahad Datu Port and Tawau Port. PROPERTY DEVELOPMENT Property development is one of the Group’s business diversification efforts to capitalise and maximise the value of its land assets adjacent to Kota Kinabalu Port’s land. Suria entered into joint venture vibrancy to the surrounding areas and agreements to develop Jesselton to complement other developments Quay and One Jesselton Waterfront. in the vicinity such as Sabah These developments will feature International Convention Centre and service suites, apartments, condo Kota Kinabalu Convention City. residences, a recreation club, hotels, commercial gallery shoppes, retail It is also the long-term plan of Suria mall, car park facilities, a ferry to develop a dedicated international ticketing office and Suria’s corporate cruise terminal supplemented with headquarters office. related commercial realties to serve as the home port or regular port of Once completed, both Jesselton call for regional and international Quay and One Jesselton Waterfront cruise liners at Kota Kinabalu Port’s projects are poised to provide land. 004 Suria Capital Holdings Berhad BUSINESS Corporate Overview and Performance SEGMENTS Our Leadership Sustainability and Highlights of the Year How We Are Governed Financial Statements & Others SEAPORT PASSENGER GATEWAY & CONSTRUCTION SCHB Engineering Services Sdn Bhd (SCHB Engineering), the engineering arm of Suria provides services in seaport passenger gateway, construction and railway engineering. SCHB Engineering operates Jesselton Under its project management Point Ferry Terminal and provides portfolio as the civil and infrastructure ‘meet and greet’ facilities for cruise engineering firm, SCHB Engineering ship passengers. SCHB Engineering has undertaken major projects in supports Suria in overseeing property the State such as the construction development ventures at Jesselton of Sapangar Bay Container Port and Quay and One Jesselton Waterfront. railway rehabilitation projects. LOGISTICS & BUNKERING SP Marine Services Sdn Bhd (SP Marine Services), is a wholly-owned subsidiary of Sabah Ports to support the port operations. SP Marine Services is a licensed bunker supplier at all ports of Sabah with PDA 2 Licence from the Ministry of Domestic Trade and Consumer Affairs. SP Marine Services provides As a licensed shipping agent bunkering services to calling vessels registered with the Royal Malaysian at ports or at anchorage for marine Customs Department, SP Marine fuel oil, diesel and marine lubricants. Services provides shipping agency Apart from bunkering, SP Marine also and forwarding (direct-user) services provides fresh water supply as well as to ships that call at our ports. provision of logistics support services to ports such as heavy lifting, storage and transportation. Annual Report 2020 005 ABOUT THIS REPORT COVER RATIONALE FOR THE ANNUAL REPORT 2020 The images on the cover of our Annual Report 2020 are inspired by the strong commitments of our own frontliners who had worked tirelessly amidst the COVID-19 pandemic to ensure minimal disruptions to port operations and services so that essential goods could reach the intended destinations. This Annual Report is a special tribute to our own frontliners, as they have risen to the occasion with their unconditional dedications and commitments whilst many working Malaysians were either locked down or working from home due to movement controls to flatten the COVID-19 curve. SuriaGroup has embarked on a journey to adopt the Integrated Reporting (<IR>) Framework as outlined by the International Integrated Reporting Council. This 2020 Please scan the QR Code Annual Report reflects our commitment in our preparation towards adhering to the to view our best practices of corporate reporting. We aim for full adoption of the Framework via the AR 2020 release of our Annual Report 2022. CONTEXT Suria Capital Holdings Berhad and its subsidiaries are referred to as SuriaGroup or the Group in this report. MAKING USE OF THE SIX CAPITALS This Annual Report includes, for the first time, an insight into how we interact with the external environment and utilise the Six Capitals to create sustainable and impactful outcomes that are attributable to our stakeholders through the efficient management of our Six Capitals and key resources. FINANCIAL CAPITAL NATURAL CAPITAL SIX CAPITALS SOCIAL & PHYSICAL CAPITAL OF <IR> RELATIONSHIP CAPITAL FRAMEWORK INTELLECTUAL CAPITAL HUMAN CAPITAL 006 Suria Capital Holdings Berhad ABOUT Corporate Overview and Performance THIS REPORT Our Leadership Sustainability and Highlights of the Year How We Are Governed Financial Statements & Others SCOPE AND COMPLETENESS