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Editorial Team Mandy Chen & Ellis Loke For enquiries, please email [email protected] Website www.samling.com Mailing Address The Samling Group, Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau, PO Box 368, 98007 Miri, Sarawak, Malaysia Ulu Baram Villages Samling brings healthcare services to In the past year, Samling and Kuching Specialist Hospital (KcSH) have collaborated in a corporate social responsibility (CSR) programme aimed at bringing healthcare and creating health and hygiene awareness to the communities in the Baram interior. (Continued on page 2) SNAP SH TS VOLUME 2: 2010/2011 SAMLING GLOBAL LIMITED

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Editorial Team Mandy Chen & Ellis Loke For enquiries, please email [email protected] Website www.samling.comMailing Address The Samling Group, Wisma Samling, Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau, PO Box 368, 98007 Miri, Sarawak, Malaysia

Ulu Baram Villages

Samling bringshealthcare services to

In the past year, Samling and Kuching Specialist Hospital (KcSH) have collaborated in a corporate social responsibility (CSR) programme aimed at bringing healthcare and creating health and hygiene awareness to the communities in the Baram interior.

(Continued on page 2)

S N A P S H T S

VOLUME 2: 2010/2011SAMLING GLOBAL LIMITED

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A medical field team appointed by KcSH comprising medical practitioners and qualified medical volunteers from both the private and public sectors would make scheduled visits to target communities. The MoU promises medical services for one year for rural communities. Healthcare services offered include basic health screening, dental care and vision test.

Samling’s main role was to ensure that the logistics of the programme were taken care of. Camp facilities in the Ulu Baram region would function as field medical centres, and we were also tasked to ferrying villagers from pick-up points at main logging roads as far as two hours from camp point. Meals were provided for all volunteers and every villager who came to the camp.

Samling also provides transportation and accommodation assistance to the visiting medical field teams between Miri and its camps and to target communities in the Baram region. Logistics support also covers medical emergencies in the event that a medical evacuation is needed and for referral cases to the hospitals in town.

1st Medical Outreach:OctOber2009An MoU for the collaboration was signed in September 2009 and by October 2009, the first team already kicked into action at Pelutan camp, Ulu baram. the medical team consisted of 18-member, and was headed by Dr Lim Kok ban, a physician from KcSH, and Dr Lu ting Yin, a dentist from Kota Samarahan Polyclinic. Leading the medical outreach programme are Ngeng eng cheng, Director of KcSH, and Datuk chong ek choon, the programme advisor.

More than 300 villagers received medical assistance, and the efficiency of Samling’s logistics team received praise from the medical team.

“the logistical operation went perfectly in that we got the maximum number of people. We salute Samling’s dedicated team of drivers, some of whom are actually camp managers. We have the best partner for this project although initially there were skeptics who questioned our choice of Samling as a partner,” said Mr Ngeng.

Ngeng added, “We came to help those who had little access to consistent healthcare. In this we are actually grateful to the folk of Ulu baram for giving us the opportunity to serve them.”

Samling’s community affair officers, who are familiar faces in the community, were the appointed local coordinators and liaison to inform the villagers of the visiting medical teams’ scheduled visits and to arrange for facilities to enable them to seek medical services.

“What we have here is similar with a rural clinic. At times we treated villagers for minor injuries and common illnesses,” Samling community Service Officer, Stewart Paran Libut said, adding that Samling has been providing community services since the 70s, long before cSr become popular.

“Ever since the flying doctor service (FDS) stopped almost three years ago, my people had little access to healthcare. For that, I wish to say thank you to Kuching Specialist Hospital (KcSH) and Samling for enabling many of us to receive treatment.”James Nyurang, headman of Tanjung Tepalit

“Making the timber camp the focal point of the medical has allowed many more people to receive treatment, instead of moving from one place to another which would involve a far more complicated logistics arrangement.” Stewart Paran, Samling’s community service officer

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3rd Medical Outreach:November2010Having heard of the fruitful collaboration between Samling and KcSH, the Lions Club of miri contacted us to co-organise a one-day medical care service project. The medical care provided this time included eye sight inspection, dental care, general health check-up, pap-smear test and even haircut for hair lice infestation.

The Lions Club brought in a medical team consisted of 40 members including doctors and nurses who attended to about 630 patients from 14 villages in the surrounding area.

The headman of Long Kawi, Satuk Lawai, spoke highly of Samling and also thanked the team for bringing various other form of assistance to them, including road building to site leveling for long houses, donation of building materials, and other essentials.

In conjunction with this programme, Samling also donated stationery and infant milk powder to the native children, while the Lions gave out food rations and used clothing.

2nd Medical Outreach:July2010Encouraged by the success of the first medical outreach programme, KScH again partnered Samling to organise a second outing of the programme. The number of villagers served this time almost doubled to more than 700 members, who came from 20 villages in ulu Baram to receive medical attention at the lutin camp in ulu Baram. Samling again played host to the medical field team and was instrumental in providing logistics support.

Medicine supplies worth more than RM16,000 were dispensed by a medical team comprising a physician, dentists, and medical assistants. Two severe cases requiring further medical attention were immediately referred to Miri Hospital via helicopter service provided by Hornbill Skyways.

“Making the timber camp the focal point of the medical has allowed many more people to receive treatment, instead of moving from one place to another which would involve a far more complicated logistics arrangement,” said Stewart Paran

Dr lim Kok Ban again led the medical team and was joined by a dedicated 20-strong team comprising two dentists and medical assistants who made a gruelling six-hour journey by land from Miri to ulu Baram where they tirelessly met with villagers who arrived as early as 7.30am with the last to leave past 5pm.

A gathering of local communities of this strength also presented a unique opportunity for government agencies such as National Registration Department, Marudi Department of Agriculture, and Pusat Kemahiran dan Pembangunan Sarawak, and a local NGO, Sarawak AIDS Council Society, to serve the people in their respective capacities.

The NRD were able to register 67 new identity card and birth certificate applicants and issued 28 identity cards and 53 birth certificates to previous applicants. The other agencies gave talks and advised the villagers about basic healthcare and daily practices, and also agricultural schemes available.

“Again, this effort would have been impossible if not for Samling’s logistics assistance in bringing the team in from Miri, and transporting the villagers to the camp,” said Mr Ngeng in a closing ceremony to mark the end of another successful medical outreach programme.

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Volunteers having their hands full attending to over 300 villagers who were transported to the Pelutan Camp for medical attention.

Dr Lim Kok Ban attending to a Penan woman and her child.

Samling workers transporting villagers to and from pick up points on logging roads nearby the villages.

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04 The team of volunteers from Kuching and Miri, together with Mr Ngeng Ek Cheng (standing, middle) and Lutin Camp Manager Mr Fong Kwok Wo (in white).

Air ambulance service courtesy of Hornbill Skyways was on standby to fly two Penan villagers who needed immediate medical attention to Miri Hospital by helicopter.

Dentists Dr Patrick Tie and Dr Kong Lik Lin inspecting dental health of a patient.

Medical supplies donated for the second medical outreach programme.

An NRD officer assisting a Penan woman in giving her thumbprint as part of the IC registration process.

A Penan child from Long Luteng holding up his birth certificate that he has just received from the National Registration Department.

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Community Snapshots VOLUME 2: 2010/2011 Community Snapshots VOLUME 2: 2010/2011 Community Snapshots 3

“We salute Samling’s dedicated team of drivers, some of whom are actually camp managers. We have the best partner for this project...” Ngeng Eng Cheng, Director of KcSH

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Engagement and Consultation ProcessThe forestry laws and regulations of Sarawak require community acceptance of logging operations in an area. We have in place a well-defined community relations policy that consists of a formal and systematic process of continuous engagement to achieve community consensus and acceptance. This partnership serves as a forum for all parties to work together, including the resolution of conflicts and disputes.

FaCt Finding dialogUESWe have a long tradition of engaging with different groups of indigenous communities. Before we enter to operate in any approved area in the forestland, we will identify the indigenous communities who live within the area. Our Community Affairs Officers and authorized representatives will meet with the Headman and his villagers to inform them of our impending operations and road construction for our timber operations. It is not necessary to relocate the communities as we set aside the village area, its surrounding forest areas and their farming land, water catchment areas and river buffer zones, from our timber operations. Due to the nature of our activities, we always consult the local villages before beginning operations. The communities have the freedom to continue their daily activities in the forest.

nEgotiationAfter fact-finding dialogues, we will negotiate with the villages so that they agree with our impending operations within their areas of influence. Amongst those that will be discussed are ways to minimize the impact of our timber operations on their living conditions and environment. When we have the consensus from the villages, we will proceed to draft the goodwill agreement. If there is no agreement, we will not enter to operate in their area of influence and continue with negotiation.

Signing oF agrEEmEntThe goodwill agreement will include the agreed community assistance and contributions to the indigenous communities during the duration of our operations. This is targeted to improve their living conditions and provide them with easier and more comfortable lives.

ExECUtionOur Community Affairs Officers and their team members will execute and monitor the assistance to be provided. They will also visit them from time to time to have their feedback and provide ad-hoc assistance upon request, such as transporting school children who live in very remote villages, leveling of land for their use, painting and repainting of their buildings.

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Engaging Forest Communitiesintegrating forest communities into forest management and operations

StrategyConsultation and dialogue with key stakeholders of the forest to meet two objectives :

• Keepforestshealthyandproductive for future generations

• Meettheworld’sintrinsicneed for wood

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Who benefitsfrom our community initiatives?

BaramKayanKenyahKelabitSaban

BerawanPenan

Bintulu/BelagaKayanIban

PunanKenyahPenan

LawasLun Bawang

CommunityLiaison Team

DialoguesFact-finding Village accepts

operations within their area of influence

Village accepts our Community Assistance

Samling commences operations

Sign Goodwill Agreement

Continuous Dialogues

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To enrich the talent and skills force in the countries in which we operate, we grant annual scholarships to students with outstanding academic credentials and leadership potential.

Since the scholarship programme began in Malaysia in 2000, we have provided over RM1.17million to about 43 students (including 6 indigenous students) attending local universities who pursued studies in areas relevant to our forestry operations.

We also offer our support through a bursary scheme. More flexible than a scholarship, the bursary programme reaches out to a wider group young people, ranging from school leavers, students from low income background, to those admitted to special institutions for disability-related reasons. Annually, we contribute about RM56,000 to about 51 primary and 7 secondary schools, and also to Curtin University to reward students who have excelled academically.

Earlier this year Hikurangi Forest Farms (HFF) underwent its first major five-year Forest Stewardship Council (FSC) audit. FSC certificates are only granted for 5 year periods. In order to remain as a FSC certified Forest Company, HFF is audited annually with major audits every 5 years. The major audit involves 3 auditors, covering all 10 principles of FSC. During these audits, corrective action request or CARS are given for area where the auditors think require improvement, these are classified as major CARs or minor CARs.

HFF passed the five year audit completed by the Smartwood programme of the Rainforest Alliance, with only two minor CARs, and has successfully regained FSC certification for the next 5 years. This result was very much a team effort in which all staff and contractors can be proud of.

Adapted from HFF’s Stakeholder Newsletter, Edition 9 (August 2010)

Hikurangi Forest Farms Ltd (HFF) won the coveted Outstanding Environmental Management Award at the inaugural Eastland Wood Council Forestry Awards held in May 2010. This award was presented to the company who best demonstrate their excellence and commitment to environmental management within the forestry industry by going above and beyond general compliance. HFF was nominated by an external auditor for FSC in recognition of outstanding results during our annual FSC audits.

Over 220 people witness the presentation, which was attended the ceremony including the Minister of Education and the Gisborne District Council Mayor and CEO. The ceremony also saw three of HFF’s nominated contractors winning impressive awards such as FITEC Trainee of the Year Award, Forestry Excellence Award, and Distribution Excellence Award.

Adapted from HFF’s Stakeholder Newsletter, Edition 9 (August 2010)

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Scholarship and Bursary ProgrammeScholarship

Bursary ProgrammeScholarship

RecertificationFSCHikurangi’sHikurangi Wins Outstanding

Environmental Management Award

Samling scholars sharing their academic and career experiences

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In February 2009, Samling became the first company in Sarawak to sign a Memorandum of Understanding (MoU) with Institut Latihan Perindustrian Miri (ILP) to collaborate on an industrial skill training programme under the National Dual Training System (NDTS) initiated by the Ministry of Human Resources. Apprentices of the programme will be awarded a Level 3 Malaysian Skill Standard (SKM) certification, which is nationally recognized, upon the successful completion of the programme. Our vision is to equip each apprentice with skill sets that will meet the demands of the industry that we are operating in.

Since the programme started in August 2009, Samling has recruited apprentices comprising youths from both urban and rural areas in Sarawak and continues to receive enquiries from local community leaders and social workers enquiring about future participation. The first batch of 11 apprentice mechanics under sponsorship will be completing the programme in August 2011. Samling has also initiated two subsequent batches of apprentices who comprise heavy equipment mechanics and a new skill set group – welders.

Mutual benefits of apprenticeshipSamling’s partnership with ILP aims to provide youths a unique opportunity to “earn and learn”, where they would be acquiring a new skill set with formal and structured on-the-job training from qualified Samling trainers while receiving a wage for the duration of the training. Through the vocational training programme, the interns are also exposed to actual work processes and technologies relevant to industry demands. In turn, Samling benefits from having a skilled and knowledgeable workforce that could provide a long-term, valuable resource for the business.

career prospects with saMling after coMpletion of prograMMeOur participation in the programme is a good opportunity for us to train and identify ILP talents to join the company’s workforce upon completion of the industrial training. High potential students

would be offered employment upon graduation within various divisions in the Group. The Group’s diversified businesses and operations enable it to facilitate a variety of industrial training placements to complement job courses such as electrical wiring, welding, heavy equipment repairs and maintenance and product design offered by ILP. To date, the Group has offered employment at its housing products subsidiary, Samling Housing Products (“SHP”), to seven trainees who have previously obtained their skills qualification from ILP Miri. In addition, SHP has trained them in the use of AutoCAD for the design of furniture and has seconded two of the trainees to its facilities in Port Klang.

Dialogue session between company anD apprenticesOn 19 March 2011, the company organised a dialogue session between the company and apprentices currently under Samling’s sponsorship. The session aims to bring the ILP trainees together to exchange feedback and to gain insight into the progress of the training and development

programme. The company also intends to play an active role in motivating the students and to share its aspirations in making the programme a success. We are encouraged by the commitment and determination shown by this group of apprentices in excelling in the programme. Samling has set its sights on expanding the training programme to include more skill sets and provide more opportunities to local youths to be trained as highly skilled employees. Samling is also involved in the development of the training syllabus together with ILP to ensure that the course contents are relevant to market requirements.

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Opening doors to a better futurevia skills programme

Samling boosts apprentices’ prospectsvia skills programme

Samling boosts apprentices’ prospectsvia skills programme

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Apart from providing access via our logging roads and bridges, Samling also directly contributes to the communities directly by providing assistance to build link roads and bridges to connect villages to main roads.

Bario, a village with eco-tourism potential located in the Kelabit Highlands in Sarawak, is finally accessible by road after the completion of a wooden bridge built of the Group as part of its community assistance programme.

Bridgeto

Samling was instrumental in providing logistics support for a 10-day 50-man expedition which set off for the Pulong Tau National Park in northern Sarawak in December 2009 to survey the existence of the rare Sumatran rhinoceros. The expedition was organised by the Forest Department, and comprised members from the department, WWF Malaysia and Samling.

The rhinoceros, a species under Sarawak’s Wildlife Protection Ordinance, was last seen more than 50 years ago in the upper Limbang area. There is no historical record of a rhino population in Sarawak as the animal was only known to roam in Sabah. However, a recent picture thought to be of a rhinoceros taken by a camera trap near Batu Lawi inspired the expedition.

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Samling donated RM12,000 worth of emergency food relief in response to the food shortage faced by the Penan settlements in the remote Belaga District located in Kapit Division in August 2009. The company mobilised resources from its timber camps in the Belaga region to dispatch 4,000kgs of rice and other food items to 12 Penan villages affected by the food shortage situation.

food relief to Penans inPenans inPenansfood relief

Samling provides

food relief

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Samling welcomes a new member to its family. His name is Murray, and he is said to be intelligent but is also known for his mischievous behaviour.

Murray is a 7-year-old orang utan, and the second offspring of his mother Nora. Murray was officially adopted in November 2009 from Sarawak Forestry Corporation.

Samling contributed a generous sum of RM30,000 for the adoption of Murray from Semenggoh Wildlife Centre for three years.

theOrangUtanOrangUtanOrang

Adoption ofMurrayMurray

theMurray

theMurray

Adoption ofMurray

Adoption of

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Community Snapshots is a publication of the Samling Group for private and internal circulation. The view and opinions expressed or implied in Community Snapshots are those of the authors or contributors and do not necessarily reflect those of Samling, its directors or editorial staff. Unsolicited transparencies and articles are sent in at the owner’s risk and we accept no liability for loss or damage. ALL RIGHTS RESERVED. No part of this publication may be reproduced without prior or express permission from Samling.

Samling’s work with the community is a continuing legacy of more than 15 years, and to this day, we continue to take on the challenge of weaving Corporate Responsibility practices into our business. We are conscious that Samling’s continued success and viable growth must go hand-in-hand with our role as neighbours to communities and the wider society where we operate in.

Sarawak is home to a rich diversity of indigenous people. The Kenyah, Kelabit, Kayan, Iban, Penan, Punan, Lun Bawang and many other tribes in Sarawak live within the areas of our operations. We have a long tradition of actively working with the indigenous people to integrate and accommodate their community activities within our operations.

Our approach to Corporate Responsibility for the local communities in Sarawak broadly comprises :

8 Community Snapshots Volume 2 : 2010/2011Community Snapshots Volume 2 : 2010/2011Community Snapshots

We make it a point to regularly engage in dialogue with local indigenous communities before we start any operations in their area to promote greater understanding. These fact-finding dialogues help us understand and assess their needs better before we invite them to participate in our Community Assistance Programme.

The villages participating in our Community Assistance Programme benefit from projects that that provide electricity, clean water supply and building materials for their homes, schools and places of worship.

Requests are also often made for the unexpected repair of bridges; clearing roads from land slips; maintaining the water pipes and electrical wiring in villages, and a host of other contributions to help out in emergencies.

Donations are given during festive seasons, especially Christmas to help make a little difference in their celebration.

Our Community Skills Programmes are about helping the communities to create long-term, self-reliant, economically vibrant communities in the long-term. Once we have helped communities secure the basic needs, we assist with skill development programmes to encourage and promote a sustainable livelihood.

We work together with the communities and local government agencies on agricultural initiatives such as building nurseries, organising talks and site visits, procuring seedlings, farming vegetables, growing fruit trees, tending fish ponds and planting wet paddy. With these acquired skills and tools in place, communities gradually acquire the ability to share in the fruits of their labour and trade with neighbouring communities.

A number of pilot projects for agriculture and coffee planting are already underway. When fully developed, these programmes will enable communities to become self-supporting even when timber companies no longer operate alongside them.

Forest lands and rivers are intricate and often challenging terrain. Travel is limited or avoided altogether given the hours, days and sometimes weeks to get from one village to another.

The bridges and road network we use for our operations also provide access to the communities within the areas of our operations. Over the years we have also constructed feeder roads to some villages, schools, and other parts of the forest, enabling easier and more convenient travelling for community members. With better connection, community members can use these roads for access to medical treatment, to transport and sell their produce to nearby communities or to us, enhancing their self-reliance.

This network of access roads, built and maintained for the benefit of the communities, continues to be one of the most essential forms of assistance that we provide.

To enrich the talent and skills force in the countries in which we operate, we grant annual scholarships to students with outstanding academic credentials and leadership potential.

Since the scholarship programme began in Malaysia in 2000, we have provided over RM800,000 to about 36 students attending both local and foreign universities.

Community AssistAAssistAAssist nCe :

Providing for basic needs

Community SkillSProgrammeS :Encouraging sustainablElivElihoods

Infrastructure : ConneCting

Communities with roads

ScholarShip and BurSary programme :

NurturiNg Future Leaders

This edition of Community Snapshots brings you up to date on some of the community development programmes and projects that Samling has worked on recently. Happy reading!

Our Approach toCorporate Social Responsibility