SUSTAINABILITY REPORT 2013 INSIDE THIS REPORT...

General Standard Disclosures • Report Profile 001 • Strategy & Analysis: Joint Address By Our Chairman And Managing Director 004 • Board of Directors 006 • Governance 007 • Management Team 008

Material Issues • Practicing Sensible Economics 010 • 2013 Inaugural Flights 013 • Environmental Consciousness 014 • Creating an Inspiring Workplace 018 • Community Friendly Organisation 024 • Memorable Experiences 028

Performance Data 034 Glossary 038 GRI Content Index 039

cover rationale

Malaysia is Accelerating its Growth Momentum in tandem with the rise in the global economy. With Asia as the concentration point of global aviation growth, we are in a strong position to leverage on this as we have built up our capacity and capability to compete effectively over the years. Being a global airport company with a dynamic portfolio, we are optimistic of success as we have the fundamentals in place to operate as a world-class airport business. Critical components that support this include an efficient airport network and system, a good working relationship with all the stakeholders, an excellent service capability as well as an ample infrastructure capacity to compete with international industry players. These elements put us in good stead in a highly competitive global aviation market and ensure that millions of users and travellers continue to enjoy access to airport facilities and services that are efficient, convenient, comfortable, and safe. 2013 Sustainability report Vision Mission World-Class Airport Business Providing World-Class Aviation Gateways; Managing Cost-Effective Airport Network And Services; Exceeding The Expectations Of Customers, Shareholders And Other Stakeholders

REPORT PROFILE This is the fifth Airports Holdings This report reflects ’ this report parallels our Annual Report for Berhad (henceforth Malaysia Airports) activities in relations to ISO9001, the corresponding year. Targets stated in Annual Sustainability Report. This report OHSAS18001 and EMS14001 standards this report are guided by milestones parallels and complements our 2013 where applicable. The stated in our Business Direction document Annual Report. (RM) is used as the standard currency in (‘Runway to Success,’ published in 2010). this report. This report is written in accordance to the Malaysia Airports is a signatory of the Global Reporting Initiative (GRI) G 3.1 and This report covers the airports within Aviation Industry Commitment to Action Airport Operators Sector Supplement Malaysia Airports’ corporate structure as on Climate Change (2008), a multi (AOSS) reporting guidelines with an reflected in the holding company’s stakeholder industry declaration to create Application Level of B+. This report also consolidated financial statements. Airports a pathway to carbon neutral growth and a contains some Standard Disclosures refer to stations whereby Malaysia Airports carbon free future. Malaysia Airports also which are in compliance with the GRI G4 holds a majority stake in and/or has direct holds memberships in the Airports Council Sustainability Reporting Guideline. managerial control over. Airports where International (ACI) World Environment Malaysia Airports has stakes in outside Standing Committee (WESC) and the ACI The content of this report has been Malaysia have been excluded from Asia Pacific Regional Environment assured by an independent external third discussion in this report. Coverage of the Committee (AP-REC). party agency to ensure accuracy and holding company’s subsidiaries is also not reliability of this report. In order to avoid exhaustive in this report. Malaysia Airport’s sixth Sustainability duplication of information, some Report will be due in parallel with our 2014 requirements of the GRI guidelines are This report covers Malaysia Airports’ Annual Report. This report and our reported in our 2013 Annual Report. performances throughout January to previous reports are available via PDF and These requirements are referenced in our October 2013 (and up to November and can be downloaded from Malaysia GRI Content Index on Page 39. December 2013 where data is available at Airports’ corporate website at time of assurance audit). All information in http://www.malaysiaairports.com.my MALAYSIA AIRPORTS HOLDINGS BERHAD 002 SUSTAINABILITY REPORT 2013

MALAYSIA AIRPORTS FIVE PILLARS OF SUSTAINABILITY

Practicing Sensible Creating an Environmental Community Friendly Memorable Airport Economics Inspiring Workplace Consciousness Organisation Experiences

MALAYSIA AIRPORTS HEAD OFFICE Malaysia Airports Holdings Berhad Malaysia Airports Corporate Office, Persiaran Korporat KLIA, 64000 KLIA, Sepang,

OUR AIRPORTS KL International Airport (KLIA/KUL) Sultan Abdul Aziz Shah Airport (SZB) Mukah STOL port (MKM)

Penang International Airport (PEN) Sultan Abdul Halim Airport (AOR) Kapit STOL port (KPI)

Langkawi International Airport (LGK) Sultan Ahmad Shah Airport (KUA) Belaga STOL port (BLG)

Kuching International Airport (KCH) Sultan Azlan Shah Airport (IPH) Bario STOL port (BBN)

Kota Kinabalu International Airport (BKI) Sultan Ismail Petra Airport (KBR) Long Seridan STOL port (ODN)

Bintulu Airport (BTU) (TGG) Long Lellang STOL port (LGL)

Labuan Airport (LBU) (TWU) Long Semado STOL port (LSM)

LahadDatu Airport (LDU) (MZV) Bakelalan STOL port (BKM)

Limbang Airport (LMN) Pangkor STOL port (PKG) Long Akah STOL port (LKH)

Melaka Airport (MKZ) Redang STOL port (RDN) Kudat STOL port (KUD)

Miri Airport (MYY) Tioman STOL port (TOD) Long Pasia STOL port (GSA)

Sandakan Airport (SDK) Lawas STOL port (LWY) Long Banga STOL port (LBP)

Sibu Airport (SBW) Marudi STOL port (MUR) Semporna STOL port (SMM)

Our previous sustainability reports Point of contact for queries and 2012 Connecting with U feedback: 2011 Clear Horizons Sustainability Department 2010 The Romance of Aviation Malaysia Airports Holdings Berhad Tel: 03-8777 7000 Fax: 03-8777 7210 2009 Licence to Grow 003 www.malaysiaairports.com.my

ORGANISATIONAL PROFILE

Malaysia Airports Holdings Berhad (Malaysia Airports) is a public listed Malaysia Airports (Sepang) Sdn Bhd company and has been trading on the This company manages, operates, provides maintenance and Main Board of future development of International Airport Securities Berhad since 1999. including KLIA’s Low Cost Carrier Terminal (LCCT) and provision of airport related services. We operate and manage 39 airports in Malaysia comprising of five international and 16 domestic airports, and 18 short Malaysia Airports Sdn Bhd (MASB) take-off and landing (STOL) ports. This company manages, operates and maintenance of Overseas, Malaysia Airports also designated airports and provision of airport related services in operates and manages Sabiha Gokcen Malaysia other than KLIA. The designated airports comprise of 4 International Airport in Turkey, and has international airports (PEN, LGK, KCH, BKI), 16 domestic airports shares in Indira Gandhi International and 18 STOL ports. Airport in New , and Rajiv Gandhi International Airport in Hyderabad, India.

As an investment holdings company, Malaysia Airports did not have any Malaysia Airports has 100 percent significant changes in size, structure or ownership of the following subsidiaries ownership during the reporting period. directly related to the context of this For list of awards received, please refer report: to our 2013 Annual Report.

LIVING THE MALAYSIA AIRPORTS BRAND Malaysia Airports embarked on its Our Brand Essence of ‘Friendly and Objectives of the brand transformation ‘Brand Culture Transformation’ journey Firm’, ‘Business Driven and journey are: in 2012, starting with various Responsible’, and ‘Progressive and workshops with the Management, Practical’ explains very simply the • To define a clear brand positioning employees, external stakeholders, and current and desired culture that we all and future direction union leaders to identify the root of our want to see in Malaysia Airports in order • Instil a sense of pride and a sense current culture, the perception towards for us to continuously improve and of belonging in our employees for our corporate brand and the brand’s move one step closer to our vision. Our the Malaysia Airports brand future state. The transformation journey shared values are embedded within the • Increase brand awareness and resulted in the discovery of Malaysia Brand Essence and have been used as positivity of stakeholders’ attitude Airports’ Brand Essence, which is guidelines in order for us to come up towards the Malaysia Airports brand founded on the root strength of our with actionable and measurable company while promoting the desired behaviours known as Individual A total of 36 workshops were held attributes in our people. It is based on Commitments. involving 976 participants from KLIA, the concept of connecting our business PEN, LGK, KCH and BKI. Feedback to the stakeholders, community and from these engagement sessions were environment in a balanced approach. analysed alongside the vision of our top management. MALAYSIA AIRPORTS HOLDINGS BERHAD 004 SUSTAINABILITY REPORT 2013

STRATEGY & ANALYSIS JOINT ADDRESS BY

OUR CHAIRMAN AND MANAGING DIRECTOR Passenger and Baggage Customs Check Management Customs Shared responsibility Department Dear Stakeholders, with

Immigration It is our pleasure to present to you Malaysia Airports’ fifth Aircraft Check Movements Immigration annual sustainability report. Sustainability is at the heart of the DCA Department way we conduct ourselves and our day-to-day business. We believe that through exemplary governance and a well Malaysia balanced approach towards every aspect of our business, we Airports are able to profit both positively and more importantly, Public Medical responsibly. Infrastructure Services Maintenance Pusrawi JKR Malaysia Airports believes in the integration of socially and environmentally responsible practices in all our operations and Public Road and management decisions. Our approach to sustainability is Transportation Curbside Control Multiple private PDRM based on five key pillars. They are: entities involved PGA

1. Practicing Sensible Economics Runway to Success, 2010 2. Creating an Inspiring Workplace 3. Environmental Consciousness Base passenger forecast (Passengers ‘000) 4. Community Friendly Organisation; and

5. Memorable Airport Experiences CAGR = 4.1% 58,327 60,218 56,495 54,720 53,001 These five pillars represents every aspect of Malaysia Airports’ 47,448 51,336

business and social stakeholders. We believe that it is 8,585 9,885 10,349 10,772 11,203 11,656 12,133 important that sustainability touches all aspects of our

operations and management to ensure continued growth, not 3,406 3,325 3,307 3,366 3,398 3,454 3,525 just for today, but for many more years to come. 3,239 3,575 3,781 3,852 3,956 4,064 4,189

As the main gateways to Malaysia, we believe that it is our 4,689 4,869 5,130 5,278 5,492 5,731 5,986 responsibility to create positive and lasting impressions to all travellers passing through our airports, be it for business, for 27,529 29,682 30,435 31,452 32,446 33,421 34,385 leisure or even if they are just passing through. Every 2008 2009 2010f 2011f 2012f 2013f 2014f passenger, regardless of their destination, is our guest and is therefore important to us. They are important revenue sources KLIA to us, and also our and business partners. Therefore, Others we have made tremendous efforts in ensuring that our Runway to Success, 2010 005 www.malaysiaairports.com.my

airports provide the highest value in exponential growth is attributed to many processes were strengthened in 2013, terms of comfort and commercial factors, including evolving trends in the with the aim of improving efficiency in offerings, in order to optimise every aviation industry. key areas of our operations and comply passenger’s travel experience. with the latest requirements where As a service industry, our greatest procedures are concerned. In a fast Teamwork is of utmost important to us. assets are our people. We are proud paced industry such as ours, it is As depicted in our five-year Business that our workforce is comprised of pertinent to be up to date, especially Plan, Malaysia Airports works with a some of the most talented aviation where it concerns the way we work large number of stakeholders in specialists in the region. In with our respective stakeholders. bringing these valuable services to our acknowledging the importance of our passengers. These stakeholders include employees, a number of rewards and We would like to take this opportunity our airline partners, private entities such recognitions were awarded to to convey our appreciation to all our as our concessionaires, and various outstanding and exemplary employees stakeholders, for your support, government agencies. We believe that throughout the year, including the understanding and partnership in our working together is important, as it accolade of ‘Employee of the Year,’ sustainability endeavours. As Malaysia allows us to leverage on each other’s which was given at our Appreciation Airports embarks upon accelerating our strengths in both management and Dinner held at Putrajaya International growth momentum, we are committed operations. Convention Center (PICC) in October to moving forward responsibly. Thank 2013. you for embarking on this exciting In 2010, our Business Plan, Runway To journey of sustainability with us. Success, predicted a traffic growth of Ethics and integrity is held with utmost 60 million passengers per annum by importance by Malaysia Airports and we year 2014. Our traffic performance of are committed to upholding 79.5 million passengers in 2013 far transparency in every aspect of our surpasses this numbers. This sustained business. A number of our policies and

………………………………………….....………….. Tan Sri Dato’ Dr. Wan Abdul Aziz bin Wan Abdullah Chairman

………………………………...……….. Tan Sri Bashir Ahmad bin Abdul Majid Managing Director MALAYSIA AIRPORTS HOLDINGS BERHAD 006 SUSTAINABILITY REPORT 2013

BOARD OF DIRECTORS Standing, from left to right

MOHD IZANI BIN GHANI ESHAH BINTI MEOR SULEIMAN TUNKU DATO’ MAHMOOD FAWZY (Non-Independent Non-Executive) (Non-Independent Non-Executive) BIN TUNKU MUHIYIDDIN (Non-Independent Non-Executive) CHUA KOK CHING DATUK ZALEKHA BINTI HASSAN (Alternate Director to Datuk Seri (Independent Non-Executive) SABARINA LAILA BINTI DATO’ Long See Wool) MOHD HASHIM (Non-Independent Non-Executive) DATUK SERI MICHEAL YAM KONG (Company Secretary) CHOY DATUK SERI LONG SEE WOOL (Independent Non-Executive) TAN SRI BASHIR AHMAD BIN (Non-Independent Non-Executive) ABDUL MAJID ROSLI BIN ABDULLAH (Managing Director) TAN SRI DATO’ SRI DR. WAN ABDUL (Non-Independent Executive) (Non-Independent Executive) AZIZ BIN WAN ABDULLAH (Chairman) (Non-Independent Non-Executive) 007 www.malaysiaairports.com.my

GOVERNANCE Malaysia Airports is committed to maintaining an organisation which is not only profitable but continues to strive for the NORAZURA BINTI TADZIM highest level of governance. The Board of Directors strongly (Alternate Director to Eshah binti believes that good corporate governance is vital in delivering Meor Suleiman) long-term sustainable business growth and creating (Non-Independent Non-Executive) economic value for all stakeholders. JEREMY BIN NASRULHAQ (Independent Non-Executive) The Board is fully committed towards achieving full compliance with the principles and recommendations of the Malaysian Code on Corporate Governance 2012 (“Code”), Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (“Bursa Malaysia Listing Requirements”) and the adoption of recommendations on corporate governance in the “Green Book Enhancing Board Effectiveness” initiated by the Putrajaya Committee on GLC High Performance as part of the GLC Transformation Programme (“Green Book”) as well as the Corporate Governance Guide (“CG Guide”) issued by Bursa Malaysia.

Composition of governance, by gender

Governance body/Gender Male Female Main board 9 2 Exco committee 5 2 Management committee 19 9 (MCM)

Composition of governance, by age

Governance body/ 30- 40- 50- 60- Total Age group 39 49 59 69

Main board** – 2 3 6 11

Exco committee 12227

Management 4139228 committee (MCM)

**Including Chairman & MD 96.55% Proportion of Malaysians in our senior management MALAYSIA AIRPORTS HOLDINGS BERHAD 008 SUSTAINABILITY REPORT 2013

MANAGEMENT TEAM

From left to right

• MUSTAFA KAMAL HJ. ALANG OTHMAN • AHMAD TARMIZI MOHD HASHIM General Manager, Aviation Security (AVSEC) General Manager, Malaysia Airports Consultancy Services (MACS) Sdn Bhd • ZAINOL MOHD ISA General Manager, Malaysia Airports Sdn Bhd • DATO’ IR. HJ. ABDUL NASIR ABDUL RAZAK General Manager, Special Project, Construction • HEZAL AHMAD General Manager, Overseas Ventures • MUHAMMAD FAWZY AHMAD General Manager, Malaysia Airports (Niaga) Sdn Bhd • MOHD SUHAIMI ABD MUBIN General Manager, Malaysia Airports (Sepang) Sdn Bhd • MUHAMAD KHAIR MIRZA Senior General Manager, Planning • MOHD NASIR ISMAIL General Manager, MAB Agriculture-Horticulture Sdn Bhd • DATO’ ABDUL HAMID MOHD ALI Chief Operating Officer • NORNAJIHAH ISMAIL, FCCA General Manager, Finance • IR. SURADINI ABDUL GHANI Senior General Manager, Human Resource • MOHAMED SALLAUDDIN MOHAMED SHAH @ MAT SAH • DATO’ AZMI MURAD General Manager, Marketing Senior General Manager, Operation Services 009 www.malaysiaairports.com.my

• TAN SRI BASHIR AHMAD ABDUL MAJID • ABDUL MALIK MOHD YUNUS Managing Director General Manager, Airport Fire & Rescue Services (AFRS)

• IR. MOHD ZAIFUDDIN IDRIS • SABARINA LAILA DATO’ MOHD HASHIM Senior General Manager, Technical Services General Manager, Secretarial And Legal Services Division Cum Company Secretary • FAIZAH KHAIRUDDIN Senior General Manager, Commercial Services • RANDHILL SINGH, IAP General Manager, Corporate Planning • FAIZAL MANSOR Chief Financial Officer • BRIAN ISKANDAR ZULKARIM General Manager, Urusan Teknologi Wawasan Sdn Bhd • VEELAYUDAN KRISHNAN NAIR (UTW) General Manager, Research & Planning • AZLAN ZAINAL ABIDIN • IR. KHAIRIAH SALLEH General Manager, IT Division General Manager, Engineering • ROKMAH ABDULLAH • NASREIN FAZAL SULTAN General Manager, Procurement & Contract General Manager, Internal Audit • NOR AZLINA MOHD ISA, IAP • NIK ANIS NIK ZAKARIA General Manager, Planning & Development General Manager, Corporate Communications MALAYSIA AIRPORTS HOLDINGS BERHAD 010 SUSTAINABILITY REPORT 2013

MATERIAL ISSUE PRACTICING SENSIBLE ECONOMICS

We believe that one of the most important element in operating a profitable business with strong long-term growth potential is doing so in a responsible manner. While every effort is channelled towards smooth operations, we also recognise that things can go wrong and have installed mechanisms to ensure that such crises can be managed at times of need. In doing so, Malaysia Airports is committed to ensuring business continuity through careful planning and critical risk management exercises.

Committed to upholding the highest level of ethics and integrity in all our business transactions, a number of policies and procedures have been enhanced in 2013, particularly with regards to our procurement practices. As our business flourishes and grows, we are determined to ensure that every measure is taken to ensure that all our transactions are conducted transparently, while maintaining efficient quality of service.

Malaysia Airports and Mitsui Fudosan enters into a joint venture agreement to develop the largest factory outlet project in Southeast Asia Malaysia Airports Holdings Berhad and This property is part of the KLIA Mitsui Fudosan Co. Ltd. has entered Aeropolis Plan, a development mix of into a joint venture agreement and commercial real estate that will include formed a joint venture company called offices, commercial establishments, a MFMA Development Sdn. Bhd. (MFMA) convention centre, logistics facilities, a for the development of the largest theme park, golf courses, and many factory outlet project to be tentatively other projects. The project will be called ‘Mitsui Outlet Park KL developed in approximately 180,000 sq International Airport (KLIA)’. meters of land, with approximately 46,300 sq meters of overall shop areas and about 260 shops in the final phase. 011 www.malaysiaairports.com.my

PRACTICING SENSIBLE ECONOMICS

RISK MANAGEMENT PROCUREMENT PRACTICES Development of Business Continuity Management (BCM) Program in all International Airports EFFECTIVE CYCLE TIME (ECT) Malaysia Airports’ Business Continuity Two incidents in 2013 Management (BCM) was spearheaded demonstrated the successful ECT is a list of timelines in the form in late 2006 and began with our recovery strategy invoked by our of maximum working days to flagship airport, KLIA adopting BCM plan. In March, the BCM complete various tasks within the Disaster Recovery Institute (DRI) plan triggered our Baggage procurement cycle from tendering standards in its implementation. BCM Handling System (BHS) team at process to the issuance of purchase plays an important role in resuming KLIA to manually retrieve and order/letter of award and compilation mission critical activities in the event transfer baggage from a broken- of contract document. The ECT is of crisis or disaster within an agreed down conveyor due to a to the structured as a tracking sheet and it Recovery Objective Time (RTO) before nearest available lines and to a is embedded in our Procurement achieving normalisation. By 2011, all designated makeup chute. This Department’s KPI. our international airports, including our recovery strategy enabled the Low Cost Carrier Terminal (LCCT) had backlog of baggage stranded on Key service deliveries were identified BCM implemented. Malaysia Airports the conveyor belt to be cleared based on PCD’s processes from is currently in the process of rolling by engaging our AFRS and UTW relevant units such as the one stop out BCM to all our domestic airports. divisions for additional manpower center, pre-tender, secretariat and In November, the Track Transit post approval whereby practical BCM also plays an important role in System (TTS) used to transfer effective cycle times were allocated to achieving compliance with the ISO passengers to and from MTB and them to be monitored. The requirements of our Information SAT building by Aerotrain was implementation of the cycle time was Security Management System (ISMS) suspended due to technical glitch. first done internally within PCD to standards. To date, LGK, our IT and This resulted in passengers’ gauge its effectiveness and practicality our Procurement Divisions are ISMS congestion at both buildings. in 2012. certified. We are also incorporating While it took several hours for the BCM into our existing web-based technical team to rectify the By the end of 2012, various samples Risk Management Information System problem, TTS Engineering team were taken to measure the achieved (Malaysia Airports Risk Scorecard – triggered their BCM plan by cycle time for several categories of MArs). For 2013, we have reviewed having four shuttle buses operated procurement processes. The results KLIA and Penang International to ferry the passenger from both were encouraging where several Airport’s BCM plans. We also rolled buildings to resume the services. improvements in the processes were out BCM to Airport identified and implemented. The as part of our domestic effective cycle times has been implementation. incorporated in PCD’s Standard Operating Procedures (SOPs) and eventually will become a sort of Service Level Agreement (SLA) for its Malaysia Airports did not face any legal actions internal customers. for anti-competitive behaviour, anti-trust and monopoly practices in 2013. MALAYSIA AIRPORTS HOLDINGS BERHAD 012 SUSTAINABILITY REPORT 2013

PROCUREMENT INTEGRITY PACT Policies, practices and proportion of spending on The procurement integrity pact • Embedding Good Governance & locally-based suppliers in intends to make public procurement Integrity in the Procurement relation to their geographic transparent by binding both parties to Process. locations of operation ethical conduct. The initiative is in line with the objectives of the ‘Fighting The pact is emphasised on all At this moment there are no Corruption’ National Key Result Area procurement activities and includes policies pertaining to locally- under the Government Transformation transparent processes, compliance based suppliers in relation to Program (GTP), introduced by the with 3Ps and internal control, geographic locations of Prime Minister to strengthen internal prevention of misconduct and operation. However, it is our processes and increase integrity accountability. A number of practice to recommend locally- value. Procurement Integrity declarations were made by our based company to be awarded Awareness Program was launched in Procurement Department such as a contract. We also refer to ‘The October 2013 to a targeted group of Integrity Declaration onto all Red Book’ on Procurement employees with the objectives below: procurement committees i.e. tender Guidelines and Best Practices opening committees, evaluation & which has five chapters as • To actively enhance a culture of review committees and approving follows: professionalism and integrity in committees. We will expand our procurement processes in MAHB. Integrity Declaration to all our 1. The importance of • To prevent the incidence of procurement employees as well as Procurement misconduct and corruption employees with direct involvement in 2. Guidelines on Supporting linkages to others. procurement activities and also to our National Development • To ensure MAHB’s integrity and vendors upon Quotation, Tender and 3. Procurement Best Practices transparency is sustained in daily RFP submission, and upon 4. Approach to Procurement procurement practices through acceptance of Letter of Award. Best Practice Implementation elements of honesty, efficiency 5. Getting Started - Ensuring and trustworthiness. Traction for a Procurement Malaysia Airports has not taken up any public policy positions and/or participated in any public policy ENHANCEMENT OF 3Ps development and lobbying in 2013. The 3Ps policy is a standard guideline and procedure in conducting procurement activities within Malaysia Airports. This year, the 3Ps policy is Malaysia Airports updated to capture our Board Procurement Committee & Management’s requirements. This has resulted in an enhanced and improved 3Ps considers corruption components. very seriously. In 2013, merely 2.2% of The areas of enhancement of the 3Ps components include procurement misconduct incidents code of ethics, general provision, policies, procedures, guidelines and were found to be appendices. The enhancement was carried out without affecting existing 3Ps. related to corruption A proper compilation entitled ‘Procurement Circulars’ will be published by and has resulted in end of 2013 incorporating all changes, enhancements and improvements that actions including has been made. dismissals, terminations, and serious warnings. 013 www.malaysiaairports.com.my

PRACTICING SENSIBLE ECONOMICS

2013 INAUGURAL FLIGHTS

Air France launches its Paris-Kuala Royal Airline’s Double KLIA gets 13th Middle Eastern Lumpur route Celebrations in 2013 : Welcoming airline in Iraqi Airways On 23rd April 2013, Air France started Reception of the Royal Brunei In September 2013, Iraqi Airways, the serving three weekly flights to Paris on Double Daily Inaugural Flight and national carrier of Iraq re-commenced departure from Kuala Lumpur. With this 1st Dreamliner Flight To Kuala its operations to Kuala Lumpur, after a new service, Air France now serves 15 Lumpur period of 34 years, offering two flights destinations in eight Asian countries. The passenger movements between weekly on Baghdad – Kuala Lumpur Malaysia and Brunei is set to increase route. These flights complement KLM’s 14 as Royal Brunei, the Brunei weekly frequencies to the Malaysian Darulsalam’s flagship carrier, increased Iraqi Airways will operate to Kuala capital, whereby seven of them are their flight frequency and received their Lumpur on Tuesdays and Saturdays. operated by KLM codeshare partner, 1st Dreamliner Flight to Kuala Lumpur. The inclusion of Iraqi Airways takes the . Air France-KLM number of Middle Eastern airlines operates over 200 weekly flights The welcoming ceremony of the Royal serving KLIA to 13, offering connections connecting Europe to Asia via the Brunei Double Daily Inaugural Flight to to various capital cities in the Middle Paris-Charles de Gaulle and Amsterdam- Kuala Lumpur was held on 20 May East. The other Middle Eastern airlines Schiphol hubs. 2013 and the Welcoming Reception of flying to KLIA are Iran Air, Emirates, the Royal Brunei Airline 1st Dreamliner Gulf Air, Saudi Arabian Airlines, Etihad continues to expand Flight to KLIA was held on 19 October Airways, , Kuwait its network 2013 at Gate C2, Satellite Building, Airways, Yemenia Yemen Airways, Already having the world’s fourth KLIA. Mahan Air, , Royal Jordanian largest flight network and flying to and Egypt Air. Iraqi Airways is the 221 flight destinations in 98 countries, 64th international airline operating at Turkish Airlines continues to grow by Welcoming Reception of the KLIA. adding flights to Kuala Lumpur, Inaugural Flight of Malaysia. Malindo Air, the Malaysia and carrier, made its maiden landing of its Beginning 25th April 2013, roundtrip first B737-900ER aircraft at KLIA on 15 flights between Istanbul and Kuala March 2013. The B737-900ER aircraft Lumpur operates three times per has 12 business and 168 economy week on Mondays, Thursdays and seats with a total of 180 seats. Saturdays.

Malaysia Airports welcomes back Philippine Airlines to Kuala Lumpur KLIA welcomes maiden flight of Philippine Airlines (PAL), the national flag Regent Airways from Bangladesh carrier of the Philippines returns to KLIA Malaysia Airports ushered into the after a seven year absence. second half of 2013 with encouraging outlook for airline business growth Effective 1st May 2013, PAL Express with the entrance of another new flies three times weekly to KLIA, airline, Regent Airways from relocating its operations from LCCT- Bangladesh. KLIA to KLIA. With PAL now serving KLIA four times weekly (flying every Beginning August 2013, Regent Monday, Tuesday, Thursday and Airways operates daily flight to KLIA. Saturday), passengers now have the Carnival Travel Sdn Bhd has been privilege to fly daily from KLIA to appointed as the General Sales Agent with PAL or PAL Express. for Regent Airways in Malaysia. MALAYSIA AIRPORTS HOLDINGS BERHAD 014 SUSTAINABILITY REPORT 2013

MATERIAL ISSUE ENVIRONMENTAL CONSCIOUSNESS

Responsible environmental practices remains at the forefront of the way we conduct our day-to-day operations. We believe that an integral part of Malaysia Airports’ growth is intertwined with the impact that we have onto the environment, and how much we give back to her. An environmentally conscious business therefore, must minimise elements that goes into their operations and more importantly, wastage that comes out of it.

Resource management and efforts to reduce waste generated is therefore at the very top of our environmental priority list. Throughout the year, energy audit assessments have been carried out, as well as campaigns to increase energy saving awareness. Besides that, we have also embarked on tapping into the clean and green possibilities offered by renewable energy.

Malaysia Airports organises its second annual Green Day program

Malaysia Airports launched its second made Green Day as its annual annual “Green Day” program on 14 program towards its relentless pursuit February, a two-pronged employee of organisational excellence. engagement activity which aims to stimulate environmental awareness and Green Day 2013 featured exciting also to enhance camaraderie among activities such as Walk For Green its staff at HQ. around the Malaysia Airports’ Corporate Office, Malaysia Airports Recycling Through this program, Malaysia Program, launch of Malaysia Airports Airports shares, instils and stimulates Cycling Team by KESUMA and also its belief and commitment in Eco Race Competition. The staff were environmental preservation with all the also given the chance to mark their staff. Malaysia Airports has always commitment in green future by planting placed employee engagement high on trees around the recently launched the organisation’s agenda, and has Malaysia Airports Sports Field. 015 www.malaysiaairports.com.my

ENVIRONMENTAL CONSCIOUSNESS

WASTES TO FORTUNE

Recycling Program @ Malaysia Airports Corporate Office

In an effort to reduce the amount of waste that our Corporate Office sends to landfill, we launched an Shine in-house recycling program in April Standard this year. The program, held on the Straighten third Friday of every month, collects waste paper products, plastic bottles Sustain and aluminium cans, weighs them and rewards the recycling departments on the spot. Sort An encouraging total of 28 departments Malaysia and units participated in this recycling program. As per October 2013, the Airports 5S total collection of paper products and bottles were at 8,143.5 kg and 121.6 kg respectively. Months that clocked in Comparatively, a total of 103.3 kg of 2013. Malaysia Airports aims to high recycling numbers (April, June and plastic bottles were collected expand this recycling program to our July) is credited to the office’s 5S throughout the duration of our airports in the very near future. efforts. recycling program up to October MALAYSIA AIRPORTS HOLDINGS BERHAD 016 SUSTAINABILITY REPORT 2013

ACI ACERT

The Airport Carbon and Emissions In 2012, Malaysia Airports disseminated each airport’s electricity usage which is Reporting Tool (ACERT) is a self- a beta version of ACERT to ten of our currently being monitored and compiled contained Excel spreadsheet that airports for testing, the results of which, by our Engineering Department’s enables an airport operator to calculate contributed to the development of the Energy Management Unit, and vehicle its own greenhouse gas (GHG) fully formed version later that year. fuel use (extracted from our centralised emissions inventory. An initiative by the fuel monitoring system) and entered ACI World Environment Standing In 2013, Malaysia Airports used ACERT into ACERT at our corporate office. Committee (WESC), ACERT was initially to gauge Scope One and Scope Two developed by Transport Canada and its carbon footprint emissions at all our Data entered by our collection consultant EBA with the Canadian international and domestic airports. In templates and processes successfully Airports Council. A global version was order to ease the process at the gave us a visual representation of the developed with the further assistance of operational level, we decided to simplify carbon footprint of our participating Zurich Airport and Toronto Pearson our ACERT data collection process by airports. Malaysia Airports intends to Airport. The tool is now available at no developing templates that are friendly to use data compiled in 2013 for internally cost to airports and can be used use by our ground staff. These developed carbon and energy reduction without emissions or environmental internally developed templates collect initiatives. expertise, inputting readily available data on operational fuel on a monthly operational data. ACERT methodologies basis, which are fed back to our are consistent with the ACI Guidance corporate office for compilation. This Manual on Airport Greenhouse Gas data is then combined with data on We do not use any Emissions Management (2009) and the aircraft pavement Greenhouse Gas (GHG) Protocol. The de-icing/anti-icing fluids tool is consistent with the ACI EUROPE as none of our airports in Airport Carbon Accreditation Levels 1 Malaysia experience cold and 2. weather seasons.

VENTURING INTO RENEWABLE ENERGY

Malaysia’s First Airport Solar Power System at KLIA

Malaysia Airports is installing the first limited space. Parking canopies TNB’s grid system, whereas airport solar power systems in combine the benefits of covered generation from parking canopy and Malaysia at KLIA. The 19 MWDC parking with the economic benefit of satellite roof top will be utilised for system combines ground-mount generating less expensive electricity. our terminal building’s own (5MW), parking canopy (10MW) and Utilising airport roof-top space and consumption. The solar power satellite rooftop (4MW) mounting land surrounding the airport, allows systems will save the airport structures to maximise the return on electricity to be generated at the approximately RM2.1 million investment and electricity savings. point of consumption which further ($700,000 US) a year when Designing a system that combines improves efficiency by removing the compared to their current energy ground mount, roof-top and parking need for transmission lines. costs from the grid and the combined canopy mounting is unique, but it has systems are the largest on Malaysian allowed Malaysia Airports to harvest The electricity generated from the soil till date. the most electricity from an area with ground-mount area will be fed into 017 www.malaysiaairports.com.my

ENVIRONMENTAL CONSCIOUSNESS

World Class Maintenance MD’S Award 2013 (Energy)

World Class Maintenance MD’s Award 2013 or also known as WCM MD’s Award 2013 (Energy) is an award organised by the Engineering Division of Malaysia Airports. This award recognises efforts made by the airports on their outstanding and significant contribution to energy saving initiatives and has demonstrated a high level of commitment and dedication to the electrical cost savings of Malaysia Airports.

Winner for BEST AIRPORT IN ENERGY MANAGEMENT 2010 – 2012: KCH

Winner for First Runner up for Second Runner up for BEST WCM ENERGY BEST WCM ENERGY BEST WCM ENERGY PROJECT PROJECT PROJECT 2010 – 2012: KUA 2010 – 2012: KUL 2010 – 2012: KCH

6.36kWh 0.16m3 5.26kWh 0.05m3 2.98kWh 0.04m3 (Jan-Aug 2013) (Jan-Sept 2013) (Jan-Sept 2013) (Jan-Oct 2013) (Jan-Aug 2013) (Jan-Oct 2013)

Energy and Water consumption Energy and Water consumption Energy and Water consumption of each passenger passing of each passenger passing of each passenger passing through KLIA through BKI through KCH

5.31kWh 0.05m3 4.44kWh 0.06m3 (Jan-Oct 2013) (Jan-Oct 2013) (Jan-Oct 2013) (Jan-Oct 2013)

Energy and Water consumption Energy and Water consumption of each passenger passing of each passenger passing through PEN through LGK MALAYSIA AIRPORTS HOLDINGS BERHAD 018 SUSTAINABILITY REPORT 2013

MATERIAL ISSUE CREATING AN INSPIRING WORKPLACE

Malaysia Airports considers it employees as its greatest and more precious assets. We are proud to have among our workforce, some of the most knowledgeable and skilled professionals in the aviation industry today.

In 2013, Malaysia Airports focused strongly on the holistic and personal development of our employees. This includes offering educational assistant so that they may pursue higher education, and addressing stress that our employees may be facing at work and at home. Another exciting initiative that we have rolled out this year is the Customer Engagement program, which exposed our Corporate Office employees to the everyday life of KLIA’s customer service ambassadors.

Total number of new employee hires and employee turnovers by age group

Total Workforce By Gender Employee of the Year

2881 Malaysia Airports’ inaugural Employee 33.1% of the Year award, was created to recognise outstanding employees who demonstrate consistent performance and high contribution to the company .This initiative also aims to recognise employees’ excellence in their field of 5818 work and also reward those who have 66.9% gone beyond their scope of duty. It is our hope that the features that made

Male Female 019 www.malaysiaairports.com.my

CREATING AN INSPIRING WORKPLACE

A GREAT PLACE TO WORK Malaysia Airports wins the Employer of Choice Silver Award Malaysia Airports Long Service Award Malaysia Airports was conferred the award includes alignment and Silver Award in the Employer of achievement of HR strategies with In 2013, Malaysia Airports’ Long Choice Award category in the business objectives, goals and KPIs; Service Award has been enhanced Malaysia HR Awards 2013. The event, demonstrating achievements in the to recognise three categories of held in October 2013, was organised areas of Talent Management, services. The company’s Long by the Malaysian Institute of Human Leadership development and Service Awards are now extended Resource Management (MIHRM). This Performance Management; progressive to include employees who have is the 13th edition of the award HR management policies, strong been with the company for ten ceremony and Malaysia Airports’ first support for Government’s strategic years and 20 years. participation in the event. reform initiatives and evidence of continuous application of HR System On 23rd September 2013, 233 of The Employer of Choice award and Technology. our employees received the Malaysia recognises sustained and continuous Airports Long Service Awards at a commitment by organisations and ceremony held at Sama-Sama Hotel corporations for the development of its KLIA. The ceremony saw 212 award human talents. The criteria for the recipients from our airports in Peninsular Malaysia, 14 recipients from our airports in and seven recipients from our airports in . The recipients comprised of the benchmark for the recipient of this the “3 Gold Star” and “Best Top Ten 137 employees who have served award will create a positive work in the Services Category” awards culture and stimulate employees to through the BHS MTB Transfer our company for 20 years, 96 challenge themselves to excel further. Improvement Project. He continues on employees who have served our being active by participating inthe BHS company ten years, and 417 Raja Azizi bin Raja Soh has been improvement initiatives such as “Sorter employees who have served our selected as Employee of the Year for Wheel Improvement”, “PPI Unit company for five years. 2012. The award ceremony was held Improvement” and “Main Sorter Filled in Putrajaya International Convention Plate Improvement”. Centre (PICC) in conjunction of Malaysia Airports Appreciation Night. Raja Azizi was selected to receive the 100% of our Together with the award, Raja Azizi award for his excellent and dedicated received “Tan Sri Datuk Dr Aris work performance all year in 2012. employees, Othman Outstanding Achievement” The result of his personal assessment regardless of gender Trophy, a cheque worth of RM10,000, also showed that he has consistently and employment a certificate of recognition and the passed 90% rate of evaluation for 3 type, receive regular “Employee of the Year” blazer. years in a row. He is a hard-working individual, innovative, highly committed, performance Raja Azizi has been working with and dedicated for company’s and career Malaysia Airport for 18 years since progression by showing positive developments 1995. He is currently attached with working culture that is praised by the reviews. Baggage Handling System (BHS) Unit, Management and as example to other Engineering Department at (MA) colleagues. He is also a Committee Sepang. Raja Azizi is one of the team Member in Malaysia Airports Sports members in BHS Unit to represent the Team from year 2010-2012 and company for the International ICC actively involved in organising Malaysia Convention 2012 where the team won Airport Football Sports Events. MALAYSIA AIRPORTS HOLDINGS BERHAD 020 SUSTAINABILITY REPORT 2013

Customer Engagement Program Malaysia Airports forms partnership with Persatuan Bomba Sukarela Kudat for the provison of airport fire and rescue service (AFRS) at Kudat Airstrip In 2013, Malaysia Airports launched the KLIA Customer Engagement Duty Programme whereby staff Malaysia Airports has roped in the training program on aircraft rescue based at our Corporate Office is help of Persatuan Bomba Sukarela and fire-fighting techniques including required to perform a mandatory (PBS) Kudat for the provision of aircraft familiarisation, in order to duty as Hospitality Ambassadors at Airport Fire and Rescue Service qualify the PBS Kudat’s personnel as KLIA. This on-the-job experience (AFRS) purposes at Kudat Airstrip AFRS personnel. provides a platform for the staff to develop operational skills, social with the signing of a Memorandum of skills and knowledge on airport Understanding (MoU) between the Malaysia Airports will also provide the operations, forging more meaningful two parties today. necessary firefighting equipment and connections with the outside world extinguishing agent for the whilst adding variety to their job. With the signing of MoU, Malaysia performance of AFRS by the PBS This program started in January Airports will appoint 15 PBS Kudat Firemen at the Airstrip. All the 2013 with approximately 500 personnel to perform and provide the selected PBS Kudat personnel will employees from our corporate AFRS at the Airstrip, which will be also be given incentive allowance by office. Two shifts were formed supervised and led by one Malaysia Malaysia Airports for performing the every day where every shift saw the Airports’ AFRS Officer. Malaysia AFRS duties at the Airstrip. participation of 15 corporate office employees. These employees, Airports’ AFRS has conducted a functioning as ambassadors, were placed at the Main Terminal Building (MTB), Contact Pier, Satellite and Low Cost Terminal (LCCT). The first shift spanned from A FOCUS ON PERSONAL 8.00 am till 3.00 pm and the second shift continued from 3.00 DEVELOPMENT pm to 9.00 pm. Each cycle took Education Assistance Program (EAP) five weeks to finish.

Currently into its fifth cycle, the The Education Assistance Program employees with the opportunity for program has evolved to have a (EAP) is a program under Malaysia financial reimbursement for education. single shift of 8.00am to 5.00pm. A Airports Career Development Program The EAP promotes personal total number of 23 corporate office (CDP) with the aspiration to promote development through formal education employees are on duty in any given and encourage continuing education in the effort to add value to Malaysia shift. for its employees. Airports employees to enable the implementation of a successful career This program is specifically designed pathing and succession planning. to furnish eligible and qualified Upholding gender equality, Education Assistance Program (EAP) Selection Criteria ratio of standard entry level wage • Employees of Malaysia Airports • The Educational Institution / and its subsidiaries University must be recognised by for male and • Has served the company for not the Government (Malaysia female at less than 3 years Qualifications Agency) Malaysia Airports • Has been confirmed in in 1:1 employment In 2013, seven candidates were Minimum wage: • Program enrolled must be job or accepted into the Education RM1,000 (grade 8) career related Assistance Program whereby six of • Excellent/Very Good/Good them are undertaking their Bachelor National minimum wage: performers in 3 consecutive years Degrees and one candidate is RM900 • Less than 45 years old undertaking a Diploma. 021 www.malaysiaairports.com.my

CREATING AN INSPIRING WORKPLACE

Employee Needs Assessment Inventory (ENAI) Counselling Management System (CMS) 88.5% ENAI is an early detection system for were selected to undergo the Percentage of problems faced by the employees in assessment with assistance from employees covered by the organisation. We believe that early Faculty of Cognitive Science & collective bargaining detection can help Malaysia Airports Human Development, Universiti in implementing appropriate Malaysia Sarawak. agreements intervention measures to address problems faced by employees. Using The pilot study found that among While Malaysia web based assessment and data issues faced by employees are health, Airports does not analysis, ENAI CS applies Ecological family, financial, spiritual, work issues, provide retirement Approach to intervention which career, interpersonal relationships and includes individual and group workplace environment. Upon plans for our counselling, workshops, awareness application of ENAI CMS intervention employees, we programs and applying changes in methods, the results shows significant currently contribute to policies in order to address issues risk towards productivity and work life our employees’ EPF a faced by employees. balance. high rate of 15% for In 2013, a pilot of the ENAI CMS service below five was conducted at KCH for a duration years and 17% for of six months. 242 airport personnel service above five years. Malaysia Airports Cycling Team (MACyT)

Following to the launch of Malaysia Airports Cycling Team (MACyT) in February 2013, several programs were organised to enhance their presence among the Malaysia Airports employees.

In May 2013, MACyT organised their first Charity Cycle at Rumah Amal Baitul Barokah WalMahabbah in Sepang. The objective of this program is to have a cycling event with a charity concept by collecting donation to be given to the home. 80 participants joined in on the program including Malaysia Airports staffs, KLIA Bikers and volunteers from Institute of Aviation Technology (MIAT). MACyT successfully raised RM5,200 which Tuesday Fun Rides were also interest and participation in cycling was donated to the home. organised by Malaysia Airports and promote healthy lifestyles. For Cycling Team (MACyT) which were further information, please browse our held weekly every Tuesday. This MACyt link at http://macyclingteam. activity was created to increase staff blogspot.com/ MALAYSIA AIRPORTS HOLDINGS BERHAD 022 SUSTAINABILITY REPORT 2013

Fire Safety Awareness at all airports In compliance with The fire safety awareness is a program targets to for at least 50% of airport Malaysian Labour to equip Malaysia Airports’ employees staff to how to handling a fire Laws, Malaysia with basic knowledge and skills to put extinguisher. Airports does not into use in the event of fire employ any emergency. The program also teaches Since its implementation in July 2012, underaged personnel the staff on how to use the firefighting a total of 2,245 staffs or 31.2% of or tolerate any equipment and to handle casualties in our staff has been certified under the the event of fire emergency. Ultimately, program. The program is divided into forced or compulsory the Airport Fire & Rescue Service two phases which consists of 2 hours labour. plans to roll out this program to of theoretical modules and practical include all the airport tenants. modules respectively. Each staff will be required to attend the program Programs for skills management The program aims to create greater once every two years and every and lifelong learning provided at awareness among Malaysia Airports’ subsequent attendance will be a Malaysia Airports that support the staff on safety and fire prevention refresher for them. continued employability of towards zero fire accident. It also employees (upon retirement) and assist them in managing career endings Malaysia Airports’ pre-retirement Reward for Non-Utilisation of Sick Leave program is designed for our employees who have reach 53 years In pursuant to the announcement Non-Utilisation Sick Leave Reward is of age and above. The program aims made by the Ministry of Health in July based on these criteria: to provide these employees with 2012 to encourage healthy knowledge and assist them in employees, Malaysia Airports has • Applicable to permanent & managing life after retirement both introduced the Non-Utilisation of Sick confirmed employees of Malaysia financially and socially. The duration of Leave reward initiative starting with Airports that have served a full 1 the program is three days and is year 2012. The main objective of this year service beginning 1st January conducted by an external consultant. initiative is to reward employees who 2012 have demonstrated high commitment • Employees must not been found The following are modules covered in towards a healthy lifestyle by not guilty of any disciplinary action or our pre-retirement program: utilising any of his/her sick leave any pending Domestic Inquiry entitlement. It is our aim to promote cases • Module 1: Spiritual preparation a healthy work environment and • Employees must have full • Module 2: Intellectual preparation lifestyle, plus encouraging good compliance in punctuality and • Module 3: Emotional preparation attendance and punctuality at the attendance at work • Module 4: Financial preparation workplace. • Employee who has not utilised • Module 5: Social preparation his/her sick leave & medical cost • Module 6: Physical & health preparation For year 2012, 50 Malaysia Airports’ • Module 7: Career preparation employees have received this award. • Module 8: Social preparation

In 2013, four sessions of our pre- retirement program were conducted with a total 146 participants. 023 www.malaysiaairports.com.my

CREATING AN INSPIRING WORKPLACE

TRIBUTE TO OUR LONGEST SERVING EMPLOYEES (AND THEY ARE STILL WITH US!)

“As an employee, you must love your It used to be that we saw just full job and what you are doing. To me, service carriers. Suddenly, the low Bahari bin Abdullah that is the first principle to working cost carriers were introduced and AVSEC Assistant with any organisation. changed the way the entire aviation AVSEC world moved. Not long after that, 42 years in service On 2nd November 1970, I started my mixed type operations emerged and career as an Air Traffic Controller, the industry evolved again. Airports and I loved doing it. Given the had to find ways to facilitate all these “I am very thankful to Malaysia chance, I would happily do it all over models. We have grown from Airports for the trust and again. That is how much I loved the managing one runway, to two opportunity given to me job. I thrive on challenges. At work, I runways to three runways now. It is a throughout my years of service am faced with new challenges every wonderful learning process for everyone. in the company. The company day. No two flights are ever the has shown its concern on the same. There are always differences When I first started out, the biggest employees’ welfare by offering be it weather, timing, runway aircraft in the sky was the Boeing attractive medical scheme and conditions, aircraft conditions etc. 707. Today, it is the Airbus A380. other benefits. This has helped Advancement in technology has also ease my family burden and 14 years later, I moved into Airport brought the aviation community so Management, and I loved the job. In much closer together than ever improve my life condition.” airport management, there are always before. Being a part of this industry’s new issues coming up. I am very evolution makes me feel proud and fortunate to be a part of such an incredibly satisfied. Even after all exciting industry. From international these years, I am still continuously Abdul Talwab Abd Manaf aviation stakeholders, to the needs and constantly learning. Fireman and demands of our airline friends, AFRS there are always new and interesting I always think of the impact that my 42 years in service things to learn and discover. work has onto airport users and this “Working with Malaysia Airports makes me committed to my job. It has been over 40 years since I’ve has helped me improve my started working and I love where I working skills and experience am now. I have seen Malaysia with training and improvement Airports grow and evolve so much programs offered. Employees through the decades. I am truly are given the opportunity to satisfied and thankful to everyone learn and gain new knowledge. whom I have worked with and This has motivates me to learn supported my career all these years.” for self-improvement in performing my duty and responsibility at work.”

Dato’ Che Azmi Murad Senior General Manager, Operations Services 43 years in service MALAYSIA AIRPORTS HOLDINGS BERHAD 024 SUSTAINABILITY REPORT 2013

MATERIAL ISSUES COMMUNITY FRIENDLY ORGANISATION

Education, particularly in our local communities remains something which is intimately close to our hearts. Our Beyond Borders program enters a whole new cycle in 2013, bringing our award-winning approach to the English Language to a new set of schools in our local communities.

Various other initiatives have also been carried out in order to ensure that our airports positively impact our local communities at large. This includes organising sports competitions, reaching out to the neediest and contributions to welfare funds at a nationwide level.

In the effort to encourage a healthy These schools were Sekolah lifestyle and positive sportsmanship Kebangsaan Bukit Changgang, within Malaysia Airports’ staff and its Sekolah Kebangsaan Labohan In November 2013, Malaysia surrounding local communities, we Dagang, Sekolah Kebangsaan Olak Airports’ senior management kick-started our first Football Invitation Lempit, Sekolah Kebangsaan Labu visited and distributed donations in Tournament in November 2013. Ulu. Football clinics were conducted the form of essential items to two for the participating schools prior to families at Bandar Baru Salak The tournament was held at our the event involving our own Tinggi and Kampung Lembah Corporate Office’s football field. A employees were given the chance to Paya, Salak. These items were total of five teams from four of the volunteer and provide assistance as contributed by our employees and current adopted and alumni schools coaches, trainers and match officials. represents our commitment to of Malaysia Airports Beyond Borders SK Labu Ulu emerged as the reach out to the neediest in our Programme participated in this champion. local communities. community engagement programme. 025 www.malaysiaairports.com.my

COMMUNITY FRIENDLY ORGANISATION

Reaching out to Flood Victims Education Scholarship Program School Bags for Standard One Pupils On 3rd December 2013, the states of Kelantan, Terengganu, and The Education Scholarship In order to lessen the burden were affected by flood situation which Program (ESP) is an award that faced by employees having to has affected one of our airport staff offers opportunities for high- spend more on the enrolment of members in Terengganu, and ten of achieving secondary school their children who are of school- our airport staff members in Kuantan, students to pursue tertiary studies going age, Malaysia Airports where five of them had their homes at top local and foreign universities. distributed one set of school bag completely submerged by the flood In addition, recipients of the ESP filled with stationeries to waters. Malaysia Airports quickly will be offered a job attachment at employees whose children will be responded to the flood situation and Malaysia Airports upon completion enrolling to Standard One in 2014. mobilised internal communication for of their studies. donations to be given to our The school bag and stationery set colleagues who were affected. There are currently nine students includes one Malaysia Airports (one in North America, one in canvas school bag which is Overwhelming response in donation Europe, and seven in Malaysia) customised specially with items were received including currently attached under the ESP appropriate number of provisions such as blankets, mattress, program. compartments to suit a Standard school uniforms and stationeries, One kid’s needs, a pencil case, foods, and clothing. The donations Courses pursued in the program an eraser, a sharpener, two were channelled directing to our includes finance, mathematics, pencils and a ruler. Distribution of affected colleagues at homes by our engineering, information technology the set of school bags and volunteers. Alongside these donations, and economics. stationery were conducted in mid Malaysia Airports also gave cash December 2013. assistance in the form of zakat contribution to the affected families.

Tabung Pahlawan installed “Malaysia Airports is greatly concerned Media Hunt 2013 at KLIA about the terrorist intrusion in , Semporna and Kunak in Sabah. Malaysia From a modest beginning in 2002 Honouring veteran soldiers whom Airports operates the , with only 30 teams taking part in have served to ensure peace in and ensures that it will do its utmost to the inaugural edition of our Media the country, Malaysia Airports preserve the security of the airport in Hunt, the 2013 edition of this launched our Tabung Pahlawan in support of the situation at Lahad Datu. We annually anticipated event saw 50 October 2013 in support of the deeply empathise with the families of the teams participating in this year’s Malaysian Ministry of Defence and security personnel who are affected. hunt which started from Malaysia Persatuan Bekas Tentera Therefore we would like to also join all Airports’ Corporate Office in Malaysia. The purpose of this Malaysians in helping to ease the burden Sepang to Bukit Gambang, fund is to allow members of the of the families.” Kuantan. public, passengers and customers at the airport to donate towards Tan Sri Dato’ Sri Dr. Wan Abdul Aziz This event is our way to thank ensuring the welfare of our Wan Abdullah you to our friends in the media veteran soldiers. Chairman of Malaysia Airports for their continuous support and the good relationship that we Our Tabung Pahlawan is * In conjunction with Malaysia Airports 11th shared and enjoyed throughout strategically located at KLIA and Annual General Meeting which was held in these years. This event also LCCT. The donation boxes also February 2013 at Sama-Sama KLIA Hotel, presents all of us with valuable located at four other of our Malaysia Airports contributed RM10,000.00 to networking opportunities not only international airports, BKI, KCH, Tabung Wira Lahad Datu Media Prima in with Malaysia Airports but also LGK and PEN and will be honouring the services of the fallen and injured among fellow media members. collecting contributions until 31st patriots of Malaysia in the line of duty defending December 2013. the sovereignty of the country. MALAYSIA AIRPORTS HOLDINGS BERHAD 026 SUSTAINABILITY REPORT 2013

“Beyond Borders as part of Malaysia Airports Corporate Responsibility MALAYSIA AIRPORTS BEYOND initiatives has proven to be the best way for us to reach out to the community BORDERS PROGRAM surrounding our airports. Successful academic records from all the adopted From its modest start as a Nine of our airports have adopted schools from previous programmes, and Khazanah’s PINTAR-inspired schools this year. They are: positive and encouraging feedbacks program in 2007, Beyond Borders from all the participating individuals, be it the students, teachers or parents has has now become one of Malaysia Airport School inspired us to continue giving back to Airports’ best known community KUL SK Labohan Dagang, the school community through this engagement efforts. With the Banting, Selangor channel.” adoption of nine new schools in Dato’ Azmi Murad, 2013, a total of 30 schools have LGK SK Temonyong, Senior General Manager, been adopted so far nationwide. , Kedah Operations Services at the launch of KBR SK Che Latiff, Kota our 2013 Beyond Borders Program Objectives of the Beyond Bharu, Kelantan Borders program TGG SK Duyong, Kuala “As a volunteer, this is my first time Terengganu, Terengganu • Improve sustainable to be part of this program and I achievement in English MKZ SK Bachang, Melaka found that the teaching method is language by underlying the SDK SK Merpati, Sandakan, very different and creates an foundation of the subject Sabah encouraging atmosphere. The pupils through listening, speaking, are very eager to learn the language LBU SK Patau-Patau, and I have the opportunity to reading, and writing to the , Sabah understand the younger generation as targeted students. SBW SK Jaya, Sibu, the programme is fun for both of the • Improve and enhance students’ Sarawak pupils and volunteer.” confidence to converse, read Issac Liew and write through classroom BTU SK Kg. Jepak, , Executive, Sustainability Department teaching and other creative Sarawak means. “Beyond Borders programme this year is more structured and there are Striving to reach and help the communities closest to our airports improve additional guidance provided to the and elevate their education quality and personal efficacy, Malaysia Airports volunteers. The programme is another has maintained the proximity to the airport as the main criterion for selection platform and provides an opportunity of these new schools. Other criteria include the academic performance of for me to learn and communicate in these schools based enriching and enrichment programmes, whereby focus English effectively with children, other is channelled to schools that are underprivileged from academic and social than my colleagues.” aspects. Khairi Mustapar Officer, IT Division

Programs/projects/activities which The activities tailored for Beyond Borders The second framework is using are on-going under our Beyond program are based on two conceptual Artistic approach, where Malaysia Borders program this year frameworks. The first is through the Airports aims to discover and refine Enrichment approach, where Malaysia the students’ articulation skills with • Beyond Borders Teachers’ Airports strive to enhance language expression via programs such as the Workshop excellence through engagement and drama competition Act-It-Up and the • Beyond Borders English support programs such as Beyond inaugural Tell-A-Story competition. Language (BEL) Program Borders English Language (BEL) Program, Through these competitions, Malaysia • Beyond Borders Young Readers’ Teachers’ Workshop and Young Readers’ Airports hopes to spur a sense of Program Program. The Beyond Borders Teachers’ competitiveness amongst the schools • Beyond Borders Pen Pal Workshop kick-off to focus on early and motivate them to improve their Program training of the teachers, an important performance from time to time. • Crossing the Border (Motivational group in rolling out the Beyond Borders Talk) program at the adopted schools.

027 www.malaysiaairports.com.my

COMMUNITY FRIENDLY ORGANISATION

“Without courage successwill not come. Beyond Borders helped me to build up my confidence level to excel KLIA AWARDS in my daily routine job.” AIRLINE OF THE YEAR – CARGO Zulfahimi Roslan KLIA Awards 2012 presentation was MASkargo (Malaysia Airlines Cargo Officer, Quality Assurance, KLIA held at Sama-Sama Hotel KLIA on 28 October 2013. The event was graced Sdn. Bhd.) (318815-M) by YB Dato’ Seri Hishammuddin Tun “(The) Beyond Borders programme Hussein, Minister of Transport. The FOREIGN AIRLINE OF THE YEAR brings out the creativity in children prestigious KLIA Awards is the ideal – CARGO and helps them to excel in English.” platform for Malaysia Airports to Korean Air Gerina Ayup reward its partners with outstanding Teacher, SK Kg. Jepak, Bintulu, performances and services. The F&B OUTLET OF THE YEAR – Sarawak presentation of the KLIA Awards is OVERALL aimed at recognising and motivating Dunkin Donuts – LCCT Outlet (Golden “Beyond borders programme has all KLIA business partners that Donuts Sdn. Bhd.) (155220-W) given a chance for the students to relentlessly push the boundaries of enhance and improve their capacity distinction in their fields, enabling F&B OUTLET OF THE YEAR – and capability in learning English in a KLIA to further advance in service HIGHEST PERCENTAGE OF more engaging, interesting and excellence. GROWTH IN SALES pleasurable way. Students are given Jonker Walk Outlet – Contact Pier varieties of entertaining activities that Together, we share the commitment Domestic Outlet stimulates their way of learning to enrich guests’ travel experience (D’Subha Multi Industries Sdn. Bhd.) English and this really helps cultivating and deliver a seamless connectivity (643865-A) the interest in learning English more.” on all routes and on all airlines. The Aminah Ahamad Ghani@ Amy annual KLIA Awards acknowledges RETAIL OUTLET OF THE YEAR – Teacher, SK Merparti, Sandakan, our outstanding partners’ contribution OVERALL Sabah in pursuit of our vision. From the Perfumes & Cosmetics – Satellite bottom of our heart, thank you and Building Outlet “(This program has) really enhance (Colours & Fragrance Sdn. Bhd.) congratulations to all the winners of my ability to teach my students with (171634-D) the materials provided. The KLIA Awards 2012 excitements in my students face are RETAIL OUTLET OF THE YEAR – AIRLINE OF THE YEAR unimaginable.” HIGHEST PERCENTAGE OF Malaysia Airlines Kamal Fatimi Bin Azmi GROWTH IN SALES Teacher, SK Duyong, Terengganu Charles & Keith Outlet – Satellite LOW COST AIRLINE OF THE YEAR Building Outlet AirAsia “Pupils show sign of increasing (Anaika Collection Sdn. Bhd.) (60014-M) interest towards English and instil FOREIGN AIRLINE OF THE YEAR SERVICE EXCELLENCE AWARD – confidence among our Year 3 Indonesia AirAsia students. Our teachers gain insight AIRPORT SERVICE QUALITY (ASQ) HIGHEST SCORE knowledge and method of teaching PROMISING NEW FOREIGN Sinar Jernih Sdn. Bhd. (367852-P) through this programme.” AIRLINE OF THE YEAR Sharon Yeo Tink Tink Mandala Airlines Teacher, SK Sibu Jaya, Sibu SERVICE EXCELLENCE AWARD – AIRPORT SERVICE QUALITY (ASQ) FOREIGN AIRLINE OF THE YEAR MOST IMPROVED SCORE “One of the benefits of this activity is BY SECTOR to provide an opportunity for staff to Persatuan Kebajikan Pemandu Teksi do charity, at the same time it South East Asia - Lapangan Terbang Tambang Murah strengthen the relationship between North East Asia - Cathay Pacific Sepang (1856-07-SEL) MAHB staff with the community. Airways STAR PERFORMER AWARD – Beyond Borders also help the school Europe - Lufthansa to improve their annual performance AIRPORT SERVICE QUALITY (ASQ) with fun activities to the kids in order South Asia - Biman Bangladesh Zuraidah Abdullah ( to attract them to love the selected Airlines Sdn. Bhd.) (375839-H) subject.” Middle East - Qatar Airways Nurul Akmar Nutman CHAIRMAN’S AWARD Officer, Quality Assurance, LCCT Africa - Egypt Air Y.Bhg Tan Sri Datuk Dr. Aris Othman MALAYSIA AIRPORTS HOLDINGS BERHAD 028 SUSTAINABILITY REPORT 2013

MATERIAL ISSUE MEMORABLE AIRPORT EXPERIENCES

We believe that if we have a great time at our airports, so will our customers. Therefore, in a mission to make airport experiences as enjoyable as possible for everyone, we have embarked on several simple and practical reward based campaigns in 2013. These campaigns, focusing on customer service and hospitality has been tremendously successful in making the flying experience fun and exciting for our employees and customers alike. Effort has also been put into making our airports safer and more comfortable.

Ultimately, we believe that everyone having an enjoyable time at our airports makes great business sense. After all, the travel experience has always been one that everyone looks forwards to. Believing thoroughly in this, Malaysia Airports is determined to make our customers’ airport experience an unforgettable one.

Miko Ng Siew Yen and Khairul Faris Shafiei

In conjunction with our T.O.U.C.H Ambassadors, Khairul Faris Shafiei Campaign, an Ambassadors’ Search and Miko Ng Siew Yen were elected was conducted whereby the winners as mentors and role models to work were Miko Ng Siew Yen from Gold with other frontliners to elevate the City and Khairul Faris Shafiei from standard of customer service at KLIA Maxis Centre KLIA. As Campaign and LCCT-KLIA. 029 www.malaysiaairports.com.my

MEMORABLE AIRPORT EXPERIENCES

Get to know Khairul Faris Shafiei, Customer Care MYSTERY SHOPPING Consultant, Maxis, KLIA PROGRAM 2013 It has been almost a year now that Faris is working with Maxis in KL The Mystery Shopping Program is Since the Mystery Shopping International Airport. His pleasant and a shopping audit tool which is Program started in 2011, the outgoing personality is a remarkable conducted by an agency to act findings have impacted Commercial asset to his job scope as a Customer Care Consultant. as shoppers or potential in the following ways: customers to assess the quality of Faris is indeed a role model to his service performance in retail • Development of Concessionaire colleagues as well as to other staff in industry. The Mystery Shopping Scorecard - an individual KL International Airport. His friendly Program 2013 KLIA and LCCT concessionaire grading report card demeanour and modesty is examines the retail, F&B and with performance comparison with commendable. His colleague, Jussey services outlets’ overall experience the overall category in retail, F&B remembers his encounter with an angry client where he patiently finds in shopping, dining or services and services. This has raised the his way to soothe them and making emphasising in the quality of awareness and identification of sure that their problems are being service and assess the visibly service quality gaps for customer resolved. “His patience, positive obvious elements in the outlet service amongst concessionaires attitude and not forgetting his such as level of cleanliness, and outlets performance. pleasant smile is an asset to Maxis product display and shop interior. • Facilitates an open discussion and we are lucky to have a colleague forum during the MAHB Annual like him!” said Jussey. The importance of Mystery Concessionaires Conference Shopping Program: between MAHB and Get to know Miko Ng Siew Yen, Concessionaires as a platform to Sales Executive, Gold City, KLIA • To improve the service quality enrich business partnerships. standards at KLIA and LCCT, • Formulation of the T.O.U.C.H Miko has 17 years of experience this will have positive Campaign with core focus on working in KLIA and now, and has been attached with Gold City for the contribution towards ASQ customer service elements. past 7 years as a Sales Executive at ratings. • Improvement in ASQ of KUL as the airport.Not only she is • To raise awareness amongst well as boosting the overall image knowledgeable, but her pleasant concessionaires of retail, F&B and shopping experience at KLIA beauty is as well an attraction to all and services on the and LCCT. customers. importance of the service quality standards and to give In 2013, a total of 828 visits have Her magnificent product knowledge has set Miko apart as a multi-talented recognition to performers. been conducted at KLIA and LCCT. staff of Gold City. No matter what • To gauge the service quality types of questions are thrown at her, gaps better service Miko has the tendency to calmly improvement. explain and enlighten her customers • To assess the competitiveness with all the details they demand for. of the outlets’ service She once had an experience dealing performance against the overall with an 8 year old customer who intended to buy his mother a gold category in retail, F&B and charm. She guided the boy into services. buying the best charm for his mother and in Miko’s opinion, it was the most satisfying sale she had ever done. Miko is definitely an asset for the outlet in treating all the customers with so much warmth and humbleness. MALAYSIA AIRPORTS HOLDINGS BERHAD 030 SUSTAINABILITY REPORT 2013

CARE-sys Awareness and Airport Emergency Plan Delivering Total Customer Training Manual endorsement by DCA Satisfaction through Outstanding Service Practices with Established in April 2013, CARE In compliance with Annex 14 Unforgettable Smile yet functions as a liaison unit that serves Chapter 9.1 of Aerodrome Conversant and Humbly Pleasant as a single point of contact in Emergency Plan, Malaysia [T.O.U.C.H] providing appropriate and relevant Airports has established a manual information to customers. Almost document on our Airport Launched in September 2012, the 2,000 cases have been handled by Emergency Plan (AEP) that has T.O.U.C.H. Campaign seeks to CARE, where by 100 percent have been endorsed by the inculcate and cultivate world class been resolved. Department of Civil Aviation customer service practices amongst (DCA). KLIA and LCCT-KLIA front liners. This CARE manages all types of is achieved through structured service customers’ feedback from all our The AEP was developed with the standards and guidelines, assessment communication platforms. It is our objective to minimise effects of and recognition. mission to ensure that all feedback is emergencies, particularly in responded to by a stipulated time respect of saving lives whilst Critical goals of the campaign are: frame within our Service Level maintaining the aircraft Agreement (SLA). CARE also operations. The AEP outlines in • To instil standard attributes that establishes touch points for each detail actions, roles and would become part of every case received and escalate them to responsibilities that needs to be concessionaires’ Standard relevant parties (Case Owners) for carried out while handling a Operating Procedures (SOP) their input or action. specific type of emergency at the • To ensure T.O.U.C.H. attributes airport. are in line with international CARE also acts as: standards of airports’ customer In the event that the AEP is service expectations and • A mediator between customers activated, Malaysia Airports would implement a standard of customer and relevant stakeholders in be directly involved in the service practice that would be reaching customers’ expectation accident operation and used by all front liners associated • A centralised channel for management, whereas DCA to our current and future airports customers’ feedback management would functions as the authority • To improve performance of every • To monitor performance of body. A clear SOP has been concessionaire by implementing airports in managing customers’ designed and incorporated into T.O.U.C.H. attributes feedback the AEP. This SOP is to be • To standardise common greetings • Customer service excellence in executed by all agencies involved. and farewell phrases, general line with ASQ and ACSPP The AEP also identifies key gestures to illustrate warmth and Elements. personnel who will be responsible courtesy, encourage front-liners to at times of emergencies as well be friendly and helpful CARE-sys is a tool that facilitates as their contact details. • To champion the importance of feedback management system to Log product knowledge in achieving Cases, Escalate & provide Response. KLIA’s AEP was endorsed in sales performance excellence and The system also enables us to prompt 2010. The AEP for all airports to raise the level of customer reminders via emails for both CARE other than KLIA was endorsed by service and Case Owners to monitor the DCA in 2012 – 2013. resolution management within SLA. 031 www.malaysiaairports.com.my

MEMORABLE AIRPORT EXPERIENCES

In order to prepare for this program, Two airports receive aerodrome certification and six SMS all outlet managers attended certification from DCA T.O.U.C.H training sessions on various aspects of T.O.U.C.H Two more airports under Malaysia Assessment and Risk Control (HIRARC) attributes such as communication Airports’ management have while the listing of Acceptable Level of skills, product knowledge, customer received Aerodrome Certification Safety (ALOS) has conformed to the service, demeanour and overall and another six certified airports requirements of the DCA. appearance. Assessments were received the Safety Management conducted twice a month to evaluate System (SMS) certifications today In the meantime, two airports, MKZ the performance of all our frontliners. after successfully undergoing and KBR received the Aerodrome Frontliners were rewarded with stringent audit by the Department Certification from DCA. The individual T.O.U.C.H. pins whenever of Civil Aviation (DCA). The six certification is a testimony that these they consistently showcased domestic airports which received airports have successfully completed T.O.U.C.H. attributes. Frontliners who SMS certification were MYY, TWU, the comprehensive audit for the successfully collected all 5 T.O.U.C.H. TGG, IPH, MKZ and KBR. certification. The aerodrome pins received a cash reward of RM500. certification meant the airports have The SMS indicates conformance met the stringent requirements based Since the launch of the T.O.U.C.H to all safety requirements and on Annex 14 Convention on Campaign in September 2012, achieving continuous improvement International Civil Aviation. The Malaysia Airports has received two in safety performance. These objective of aerodrome certification is awards from the Marketing Excellence include the essential features of to establish a regulatory system to Awards 2013 in March 2013 for the safety such as policy, strategy and ensure that the facilities, equipment, categories of Excellence in Public planning and implementation as services and operational procedures Relations Internal/Employee well as promotion, records, staff at certified aerodrome are in Communications (Gold Award) and training and competency. It also compliance with the Standard and Excellence in Public Relations certifies that the airports have Recommended Practices specified in Corporate Communications (Silver successfully implemented the the ICAO Annex 14 document. Award). Additionally, we have also ’Hazard Identification, Risk registered interest from several other companies to learn from our T.O.U.C.H campaign. As of 28 November 2013, the KLIA T.O.U.C.H. Facebook Page has reached 39,042 Malaysia Airports’ Indulge Till You Fly Campaign 2012/2013: The likes. This is the first social media Dragons of Asia Award platform for Malaysia Airports to exceed 10,000 likes. Malaysia Airports’ Indulge Till You results in marketing campaigns. I am Fly Campaign 2012/2013 came proud that we emerged as the As of November 2013, the campaign up tops under the Best of champion amongst champions in this has elected over 100 Champion Pin Country (Malaysia) Trade particular category,” said Puan Faizah Winners and 250 individual Campaign. This Award is Khairuddin, Senior General Manager T.O.U.C.H. pin winners; and continues presented to the campaign that Commercial Services. to be an integral part of the KLIA best markets a product or hospitality experience. service within any retail or trade Launched in 2010, Indulge Till You channel. Fly Campaign is part of Malaysia Airports’ drive to raise awareness of “The Dragons of Asia Award the dual roles of our international acknowledges the importance of airports – as transportation hubs and focusing on objectives and as lifestyle destinations. MALAYSIA AIRPORTS HOLDINGS BERHAD 032 SUSTAINABILITY REPORT 2013

More notable initiatives What our customers say about KLIA (Excerpts from Convergence: Our undertaken in 2013 in-house airport magazine) “The question of safety never crossed our minds since our arrivals. I guess that An ‘Instant Feedback System’ (IFS) means the security measures in KLIA have been excellent thus far.” was introduced at the washrooms of – Bill and Eric Spragg, Australia. KLIA. This is a rating system where users of the washroom may rate the “It is always good to have free Wi-Fi. It shows that the airport has modern cleanliness of the washroom using infrastructure and the airport management are forward thinking.” smiley icons. These feedbacks are – Bernd Koehn, Germany. instantly captured at the backend and “I frequently come to KLIA quite often, and normally park here for periods of immediate action can be taken by around 9 hours or so. The car park is easy to find and to navigate around, cleaners if the cleanliness of the and my experience so far has been superb.” washroom received poor feedback. – Navin, Malaysia.

We have introduced the Mobile “It (immigration) was a fast process, we didn’t even have to wait on the way Customer-Information-Centre (M-CIC), through – just what we need on a long journey to Australia. It was a good whereby our airport staffs is given a experience.” tablet that contains pertinent – Heidi and Laurie, Finland. information of the airport as well as a “It (wi-fi at KLIA) has been great so far. I managed to check our connecting mini customer satisfaction survey. The flight details through this service, which was as scheduled, so I have peace of tablet allows our airport staff to be mind. Thanks MAHB!” mobile and act as a “hospitality – Tanya Nguyen and Travel Partners, . ambassador” in helping passengers to find their way and provide information “(The wi-fi at KLIA) Easily accessible anywhere in the airport. It is fast and more related to flight, airport facilities, etc. importantly, free!” – Gian Giron and Friends, Philippines. In an effort to inculcate a healthy “There are ATMs everywhere and with so many people wanting to use them, lifestyle and showcase Malaysia, it’s great that we don’t have to stand in long lines.” cultural dances performed by the – Yusri and Azrina, Malaysia. airport staff themselves are showcased at KLIA where passengers “Very good. Most arrivals get held up because of the security procedures but can enjoy a slice of Malaysian culture the flow in KLIA is very fast despite being such a large airport.” and even join in. Aerobics exercise – Hisha, Elsadiq, Dida and Tayseir, Qatar. has also been introduced on a “The banking facilities are good. In fact, we just had some money changed! It’s weekly/monthly basis to inculcate a great that they are available, and the one we went to was easy to locate.” healthy lifestyle where airport staff and – Ingrid and Frithjof, Germany. passengers alike can sweat it off while having a little fun.

Malaysia Airports enhances lifestyle experience with new mobile app Passengers passing through KLIA can airport services and facilities at their now spend more time at their fingertips. favourite retail, dining and relaxation spots at the airport without having to The mobile app, developed by take too much time locating them, all Malaysia Airports, is available for thanks to the location directory on download from iTunes and Play the app. The mobile app provides Store. It can be operated on both added convenience to passengers as iOS and Android platforms and they will have the latest information comes with Facebook, and on outlet locations, promotions, and email social sharing functions. 033 www.malaysiaairports.com.my

MEMORABLE AIRPORT EXPERIENCES

KLIA ASQ Star Performer Award

Malaysia Airports practices At our recent KLIA Awards 2012, sponsorship guidelines that aim to Malaysia Airports had introduced the KLIA strengthen relationship with its ASQ Star Performer Award as a new award category under the Service stakeholders. Malaysia Airports’ Excellence Award. This award is to investments in sponsorship are made recognise and honour the outstanding achievement and efforts of individual who on case to case basis where the has shown personal qualities and sponsorships correspond to its value exceptional skills in work performance. and business objectives. The inaugural KLIA ASQ Star Performer Award 2012 was given to Zuraidah The guidelines are in place to ensure Abdullah, currently attached to Express Rail Link Sdn Bhd as Ticketing Officer. that our involvement in any Zuraidah Abdullah joined Express Rail Link sponsorship will achieve the best Sdn Bhd in 2008 and displayed excellent value, whether tangible or intangible, service and dedication in carrying out her duties. She is a committed individual with for Malaysia Airports and its strong personal discipline as she has not surrounding airport community. Our taken a single sick leave or came late in the past three years. involvement in any sponsorship should enhance Malaysia Airports’ public image, reputation and standing. AFRS Rating Program In 2013, our Airports Fire and Rescue Service (AFRS) Department introduced a The guidelines are also in line with our new Individual Physical Proficiency Test ‘No Gift’ Policy in the effort to uphold (IPPT) standard as part of their Rating Corporate Governance and Program. The new IPPT was developed with the objective of testing the level of Transparency in our business conduct. physical fitness of AFRS personnel in performing strenuous rescue and fire- ‘We Are the Host’ Training fighting duties.

In preparation for Visit Malaysia Year (VMY) 2014, front liners from all The new IPPT standard was developed agencies at KLIA and BKI has undergone ‘We Are the Host’ training and endorsed by the National Sports sessions conducted by the Malaysian Ministry of Tourism. Institute (ISN) and received approval by the Exco Committee in June 2013. This This training focuses on providing world class customer service to all new IPPT standard has now been travelers passing through our airports. This training complements the incorporated into our AFRS Rating Policy existing Customer Service and Courtesy & Care Program conducted (Polisi Penarafan Anggota AFRS). internally by Malaysia Airports, aimed to enhance the knowledge of our airport employees in the area of hospitality. 801 personnel including firemen and Senior Managers are subjected to the AFRS Rating Program and have undergone the Individual Physical Proficiency Test (IPPT). MALAYSIA AIRPORTS HOLDINGS BERHAD 034 SUSTAINABILITY REPORT 2013

PERFORMANCE DATA: EN

Indirect Energy Consumption by Primary Energy Total Water Withdrawal by Source(Jan-October 2013) Source [EN4] [EN8]

Airports Power Producer kwh/year Airports Water Supplier m3/year Syarikat Bekalan Air 5,654,165.66 KUL TNB/GDC 193,548,483 (Jan-Aug) KUL Selangor Sdn Bhd (Jan-Sept) BKI Sabah Elektrik 26,153,136 (Jan-Sept) Jabatan Bekalan Air BKI 270,965.44 Sabah KCH SESCO 10,494,814 (Jan-Sept) KCH Lembaga Air Kuching 171,711.51 LGK TNB 6,714,709 (Jan-Oct) Syarikat Air Darul Aman LGK 93,997.11 PEN TNB 23,299,809.56 (Jan-Oct) Sdn Bhd Perbadanan Bekalan Air AOR TNB 2,887,196 (Jan-Oct) PEN 205,788.20 Pulau Pinang BTU SESCO 2,115,661 (Jan-Oct) Syarikat Air Darul Aman AOR 48,200.56 IPH TNB 1,080,112 (Jan-Oct) Sdn Bhd Laku Management Sdn BTU 27,189.85 KBR TNB 3,046,910 (Jan-Oct) Bhd TGG TNB 3,103,156.87 (Jan-Oct) IPH Lembaga Air Perak 20,986.49 KUA TNB 525,029.5 (Jan-Oct) KBR Air Kelantan Sdn Bhd 60,234.82 Syarikat Air Terengganu LBU Sabah Elektrik 3,267,657 (Jan-Oct) TGG 28,907.26 Sdn Bhd LDU Sabah Elektrik 147,479 (Jan-Sept) Pengurusan Air Pahang KUA 13,814.88 Bhd LMN SESCO 255,522 (Jan-Sept) Jabatan Bekalan Air WP LBN 38,745.67 MKZ TNB 617,180 (Jan-Oct) Labuan MYY SESCO 3,298,728 (Jan-Oct) LDU Jabatan Bekalan Air Sabah 5,111.00 Laku Management Sdn SDK Sabah Elektrik 1,755,467 (Jan-Oct) LMN 1,680.26 Bhd SBW SESCO 2,488,871 (Jan-Oct) Syarikat Air Melaka MKZ 2,929.22 Berhad SBZ TNB 13,559,961 (Jan-Oct) Laku Management MYY 53,808.18 TWU Sabah Elektrik 2,660,284 (Jan-Oct) Sdn Bhd HQ TNB 1,915,205 (Jan-Sept) SDK Jabatan Bekalan Air Sabah 53,104.61 SBW Lembaga Air Sibu 38,215.11 Our airports with EMS14001:2004 Certification Syarikat Bekalan Air SBZ 176,826.07 (SIRIM QAS International Sdn Bhd) Selangor Sdn Bhd Jabatan Bekalan Air TWU 103,409.06 KLIA KCH AOR LBU Sabah Syarikat Bekalan Air 47,164.91 PEN LGK TGG BTU HQ Selangor Sdn Bhd (Jan-Sept) BKI MYY Figures converted to m³ from bills received 035 www.malaysiaairports.com.my

PERFORMANCE DATA: LA & HR

Total workforce by employment type, by gender [LA1] Our airports with OHSAS18001:2007 Certification (SIRIM QAS International Sdn Bhd) Employment type Male Female Management (26 – 33) 70 34 KLIA KCH AOR LBU Management (24 – 25) 124 61 PEN LGK TGG BTU Executive (19 – 23) 429 285 BKI MYY Non-Executive (08 – 16) 5,195 2,501 Average number of hours devoted to training personnel Total 5,818 2,881 per year per employee by gender [LA10]

Employee category Male Female (hours) (hours) Total workforce by region, by gender [LA1] Management (26 – 33) 24 hrs 24 hrs Region Male Female Management (24 – 25) 40 hrs 40 hrs 1,204 481 Executive (19 – 23) 48 hrs 48 hrs West Malaysia 4,614 2,400 Non-Executive (08 – 16) 16 hrs 16 hrs Total 5,818 2,881

The total number of hours devoted to employee training on policies and procedures regarding aspects Percentage of employees receiving regular performance of human rights that are relevant to operations, and career developments reviews broken down by including the percentage of employees trained [HR3] gender [LA12] 16 hrs (75% of employees trained) Employee category Male (%) Female (%) Return to work and retention rates after parental Management (26 – 33) 100% 100% leave [LA15] Management (24 – 25) 100% 100% Male Female Executive (19 – 23) 100% 100% Employees that were entitled 3,966 1,555 Non-Executive (08 – 16) 100% 100% to parental leave Employees that took parental 49 43 leave Percentage of total workforce represented in Employees who returned to 49 43 formal joint management-workers health and safety work after parental leave has committees that help monitor and advice on ended occupational health and safety programs [LA6] Employees who returned to 49 42 5% work after parental leave has ended, who were still employed 12 months after they returned to work

Definition of parental leave: Leave granted to men and women workers on the grounds of the birth of a child. MALAYSIA AIRPORTS HOLDINGS BERHAD 036 SUSTAINABILITY REPORT 2013

Total number of new employee hires and employee turnovers by age group [LA2]

Category (Age) New Hire Turnover 18-29 504 352 30-39 62 63 40-49 7 18 50-59 0 44 60-69 0 2 Total 573 479

Rate of injury, occupational diseases, lost days and number of work related fatalities by region & gender [LA7]

Percentage (%) Injury Occupational Lost days Number of work diseases related fatalities Region – Peninsular 6 Nil 14 Nil – Sabah 1 Nil 22 Nil – Sarawak 0 Nil – Nil Gender – Male 5 Nil 22 Nil – Female 2 Nil 14 Nil

Education, training, counselling, prevention and risk control programs in place to assist workforce members, their families, and community members regarding serious diseases [LA8]

Education/ Counseling Prevention/ Treatment Training Risk Control Program recipients Yes No Yes No Yes No Yes No Workers √√√√ Workers’ families √ √ √ √ Community members √ √ √ √ 037 www.malaysiaairports.com.my

PERFORMANCE DATA: PR The following product and service information is Airport Service Quality (ASQ) Ranking [PR5] KLIA required by Malaysia Airports’ procedures for product and service information and labelling at the contract 2009 2010 2011 2012 2013 tender process [PR3] Q1 Q2 Q3 It is mandatory for all our suppliers and contractors to Overall 16 13 19 8 10 20 23 comply 100% with our requirement as stated in a contract ASQ rank pertaining the following: worldwide Overall 4343445 Yes No ASQ rank The sourcing of components of the √-in 25-40 product or service mppa category Content, particularly with regard to √- substances that might produce an LGK environmental or social impact Safe use of the product or service √ - 2013 Q1 Q2 Q3 Disposal of the product and √- environmental/social impacts Overall ASQ rank 77 59 83 worldwide Other (explain) - - Overall ASQ rank in 0-2 11 6 9 mppa category Total number of incidents for non-compliance with regulations concerning marketing communications * In 2013, the most important basic elements addressed through [PR7] the initiatives are cleanliness of the terminal, availability and cleanliness of washrooms, waiting time at various points within the Incidents Total terminal, availability of shopping and restaurants and internet access availability. Incidents of non-compliance with NIL regulations resulting in a fine or penalty Our airports with QMS9001:2008 Certification Incidents of non-compliance with NIL (SIRIM QAS International Sdn Bhd) regulations resulting in a warning KLIA KCH AOR LBU Incidents of non-compliance with voluntary NIL codes PEN LGK TGG BTU BKI MYY IPH SZB Total number of substantiated complaints regarding KBR KUA MKZ SBW breaches of customer privacy and losses of customer data [PR8] LMN LDU SDK TWU RDN TOD MZV Complaints Total

Complaints received from outside parties NIL Our airports with ISMS27001:2005 Certification and substantiated by the organisation (SIRIM QAS International Sdn Bhd) Complaints from regulatory bodies NIL LGK MALAYSIA AIRPORTS HOLDINGS BERHAD 038 SUSTAINABILITY REPORT 2013

GLOSSARY AEP Airport Emergency Program AFRS Airport Fire & Rescue Services AVSEC Aviation Security DRI Disaster Recovery Institute RTO Recovery Time Objective BHS Baggage Handling System GRI Global Reporting Index AOSS Airport Operators Sector Supplement ACI Airport Council International WESC World Environmental Standing Committee AP-REC Regional Environment Committee BCM Business Continuity Management ISMS Information Security Management System TTS Track Transit System MTB Main Terminal Building SAT Satellite Building ECT Effective Cycle Time GTP Government Transformation Program RFP Request for Proposal KESUMA Kelab Sukan Malaysia Airports ACERT Airport Carbon and Emissions Reporting Tool EAP Education Assistance Program CDP Career Development Program PBS Persatuan Bomba Sukarela MoU Memorandum of Understanding BEL Beyond Borders English Language VMW Visit Malaysia Year ESP Education Scholarship Program F&B Foods & Beverages ASQ Airport Service Quality SOP Standard Operating Procedures DCA Department of Civil Aviation SLA Service Level Agreement IPPT Individual Physical Proficiency Test 039 www.malaysiaairports.com.my

GRI CONTENT INDEX

External G3.1 G4 Description Page Assurance 1.1 1 Statement from the most senior decision-maker of the √ 004 organisation. 2.1 2 Name of the organisation. √ i 2.2 3 Primary brands, products and/or services. Reported in AR 2.3 4 Operational structure of the organisation. Reported in AR 2.4 5 Location of organisation’s headquarters. Reported in AR 2.5 6 Number of countries where the organisation operates. Reported in AR 2.6 7 Nature of ownership and legal form. Reported in AR 2.7 8 Markets served. Reported in AR 2.8 9 Scale of the reporting organisation. Reported in AR 2.9 13 Significant changes during the reporting period Reported in AR regarding size, structure, or ownership. 2.10 Awards received in the reporting period. Reported in AR 3.1 28 Reporting period (e.g., fiscal/calendar year) for √ 001 information provided. 3.2 29 Date of most recent previous report (if any). √ 001 3.3 30 Reporting cycle (annual, biennial, etc). √ 001 3.4 31 Contact point for questions regarding the report or its √ 002 contents. 3.5 18 Process for defining report content. √ 001 3.6 20-21 Boundary of the reports. √ 001 3.7 20-21 Limitations on the scope or boundary of the report. √ 001 3.8 20-21 Basis for reporting on joint ventures, subsidiaries, leased √ 001 facilities, outsourced operations, and other entities. 3.9 Data measurement techniques and the bases of √ 001 calculations. 3.10 22 Effect of any re-statements of information provided in √ 001 earlier reports. 3.11 23 Significant changes from previous reporting periods. √ 001 3.12 32 Table identifying the location of the Standard √ 001 Disclosures in the report. MALAYSIA AIRPORTS HOLDINGS BERHAD 040 SUSTAINABILITY REPORT 2013

GRI CONTENT INDEX External G3.1 G4 Description Page Assurance 3.13 33 Policy and current practice with regard to seeking √ 001 external assurance for the report. 4.1 34,38 Governance structure of the organisation. Reported in AR 4.2 39 Indicate whether the Chair of the highest governance Reported in AR body is also an executive officer. 4.3 38 Number and gender of members of the highest Reported in AR governance body. 4.4 37,49,53 Mechanisms to provide recommendations or direction to Reported in AR the highest governance body. 4.5 51 Linkage between compensation for members of the highest governance body, senior managers and Reported in AR executives and the organisation’s performance. 4.6 41 Processes in place for the highest governance body to Reported in AR ensure conflicts of interest are avoided. 4.7 40 Process for determining the composition, qualifications, and expertise of the members of the highest Reported in AR governance body and its committees. 4.8 56 Internally developed statements of mission or values, Reported in AR codes of conduct and principles. 4.9 45,47 Procedures of the highest governance body for overseeing the organisation’s identification and Reported in AR management of economic, environmental and social performance. 4.10 44 Processes for evaluating the highest governance body’s Reported in AR own performance. 4.12 15 Externally developed economic, environmental and social √ 001 charters, principles or other initiatives. 56 Describe the organisation’s values, principles, standards and norms of behaviour such as codes of conduct and √ 003 codes of ethics. EC5 EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant location of √ 020 operation. EC6 - Policy, practices, and proportion of spending on locally-based suppliers at significant locations of √ 012 operation. AO1 - Total number of passengers annually Reported in AR AO2 - Annual total number of aircraft movements. Reported in AR AO3 - Total amount of cargo tonnage. Reported in AR 041 www.malaysiaairports.com.my

GRI CONTENT INDEX External G3.1 G4 Description Page Assurance EC7 - Procedures for local hiring and proportion of senior management hired from the local community at √ 007 locations of significant operation. EN4 - Indirect energy consumption by primary energy source. √ 017 EN6 EN6 Initiatives to provide energy-efficient or renewable energy √ 016 based products and services. EN8 EN8 Total water withdrawal by source. √ 017 EN18 EN19 Initiatives to reduce greenhouse gas emissions and √ 016 reductions achieved. AO6 - Aircraft and pavement de-icing/anti-icing fluid used and √ 016 treated by m³ and/or tonnes. LA1 Total workforce by employment type, employment √ 035 contract, and region, broken down by gender LA2 LA1 Total number and rate of new employee hires and √ 036 employee turnover by age group, gender, and region. LA15 LA3 Return to work and retention rates after parental leave, √ 035 by gender. LA4 Percentage of employees covered by collective √ 021 bargaining agreements. LA6 LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that √ 035 help monitor and advise on occupational health and safety programs. LA7 LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work √ 036 related fatalities by region and by gender. LA8 - Education, training, counseling, prevention, and risk- control programs in place to assist workforce members, √ 036 their families, or community members regarding serious diseases. LA10 LA9 Average hours of training per year per employee by √ 035 gender, and by employee category. LA11 LA10 Programs for skills management and lifelong learning that support the continued employability of employees √ 022 and assist them in managing career endings. LA12 LA11 Percentage of employees receiving regular performance √ 019 and career development reviews, by gender. LA13 LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, √ 007 age group, minority group membership, and other indicators of diversity. MALAYSIA AIRPORTS HOLDINGS BERHAD 042 SUSTAINABILITY REPORT 2013

GRI CONTENT INDEX External G3.1 G4 Description Page Assurance HR3 HR2 Total hours of employee training on policies and procedures concerning aspects of human rights that are √ 035 relevant to operations, including the percentage of employees trained HR4 HR3 Total number of incidents of discrimination and √ 035 corrective actions taken. HR6 HR5 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures √ 002 taken to contribute to the effective abolition of child labor. HR7 HR6 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory √ 022 labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. HR8 HR7 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects √ 035 of human rights that are relevant to operations. SO1 SO1 Percentage of operations with implemented local community engagement, impact assessments, and √ 026 development programs. SO3 SO3 Percentage of employees trained in organisation’s √ 012 anti-corruption policies and procedures. SO4 SO4 Actions taken in response to incidents of corruptions. √ 012 SO5 Public policy positions and participation in public policy Reported in AR development and lobbying. SO7 SO7 Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their √ 012 outcomes. PR3 PR3 Type of product and service information required by the organisation’s procedures for product and service information and labelling, and percentage of significant √ 037 product and service categories subject to such information requirements. PR5 PR5 Results of surveys measuring customer satisfaction. √ 037 PR6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, √ 033 including advertising, promotion, and sponsorship. PR7 PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing √ 037 communications, including advertising, promotion, and sponsorship by type of outcomes. PR8 PR8 Total number of substantiated complaints regarding √ 037 breaches of customer privacy and losses of customer data.

[This page has been intentionally left blank] MALAYSIA AIRPORTS HOLDINGS BERHAD (487092-W) Malaysia Airports Corporate Office, Persiaran Korporat KLIA, 64000 KLIA, Sepang, Selangor Darul Ehsan, Malaysia. Tel: +603-8777 7000 Fax: +603-8777 7778 www.malaysiaairports.com.my