October 14, 2011

To our stakeholders:

I am pleased to confirm that Mechcam Precision Sdn Bhd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Lew Chu Tong
Managing Director

The core value of international human rights practice including labour issue is the notion that all human beings are born free and equal in dignity and rights. MECHCAM fully support the Universal Declaration of Human Rights and will enhance our capabilities to identify and manage human right issues in four areas relevant to our business; employees, security providers, community engagements and suppliers.

Employees – We treat all of our employees with respect and dignity regardless of ethnic, sex, race and age. Our practices adhere to all applicable domestic laws concerning freedom of association, non discrimination, forced labor and underage workers in the workplace.
Security – We protect personnel and assets and provide a secure environment in which business operations can be successfully operated. To this end, MECHCAM has ban all smoking, gambling, usage of drug and alcohol in the workplace. Workers are to be in a safe environment, protected from hazards of the job. Where necessary, workers will be provided safety equipment as appropriate to the work being performed. Workers are to be provided with ready access to toilet facilities, potable water and sanitary food preparation, storage and eating facilities.
Community – We contribute to socioeconomic development where we operate and proactively foster two way communications with communities and stakeholders.
Supplier – We encourage our suppliers to treat their employees and to interact with communities in a manner that respect human rights and are consistent with the spirit and intent of our practices. We require our key suppliers adhere to all applicable domestic laws and encourage them to be consistent with labor principles. We also engage with our key suppliers to reinforce awareness of potential human rights issues.

MECHCAM constantly monitor any violations of human right through its safety and health meeting. Occasionally, external consultants are engaged to review the current practices for continual improvement. Procedures and systems are to be in place to manage, track and report occupational injury and illness. Emergency response procedures will be in place.

Mechcam Precision Sdn Bhd is firmly committed to create strong business growth, which is not achieved at the expense of the environment, quality of life or social equity. Our commitments include:

- comply with national labour law
- comply with Convention on the Rights of the Chiled (CRC, 1989)
- not use or support the use of child labour as defined in ILO Core Conventions
- not work with those who use child labour - unless an elimination plan is in place

New workers are trained in the induction program on matters related to their rights. All staffs are provided with employment contracts stating the terms and conditions of service, the voluntary nature of employment, the freedom to leave (including the appropriate procedures) and any penalties that may be associated with a departure or cessation of work. In addition to salaries, MECHCAM also provide fringe benefits such as free medical treatment, personal accident and life insurance coverage, free or subsidized transport, annual bonus, retirement benefits and enhanced contributions to the Employees Provident Fund

MECHCAM constantly monitor any violations of labour issue through its safety and health meeting. Occasionally, external consultants are engaged to review the current practices for continual improvement. Procedures and systems are to be in place to manage, track and report occupational injury and illness. Emergency response procedures will be in place.

MECHCAM recognizes the critical importance of a healthy environment to our global society, our economy, our business and our people. We also realize the potential impacts that today’s environmental challenges will have if left unaddressed. In our commitment to good corporate citizenship, we have a responsibility to manage and leverage our resources in a way that promotes a healthy and sustainable environment. As such, we are committed to considering environmental issues in all aspects of our business, including how we evaluate suppliers, how we collaborate with and educate our clients and employees; how we conduct our own operations; and how we promote and develop new market opportunities. We believe that our approach to environmental issues helps us pursue our principal focus of creating long-term value for our shareholders and serving the long-term interests of our clients.

MECHCAM have identified operational activities that is associated with the significant environment impact. The business nature of MECHCAM is of little adverse impact to the environment since resources consumed and waste generated is minimal. There is also no significant pollution from all supportive activities. Some of our environmental programs include:
- to promote energy conservation by efficient use and careful planning with due regard to improved energy utilsation and appropriate investment in energy efficient measures
- to educate, train and motivate employees to conduct their activities in environmentally responsible manner
- to comply with all applicable environmental legislative and regulatory requirements, identifying and applying the best available techniques wherever possible

MECHCAM has established monitoring programs to assess the environmental performance. This includes, the monitoring of the objectives and targets, resources consumption and waste generated. The legal compliance for applicable environmental regulations are monitored and ensures compliance. All environmental performances are reviewed in the annual management review.

Whoever we may deal with, and wherever we may operate, we are committed to doing so lawfully, ethically and with integrity. As part of this commitment, all forms of bribery and corruption are unacceptable and will not be tolerated. We will not, and we must ensure that any third party acting on our behalf does not, act corruptly in our dealings with any other person.

This anti-bribery and corruption policy sets out how we prevents acts of bribery and corruption taking place. This policy has been designed to support the UN Convention Against Corruption against bribery and corruption on a global basis.

MECHCAM has a zero tolerance policy towards bribery and corruption and as such, all forms of bribery and corruption are prohibited. Any breach of this policy could result in disciplinary action being taken and ultimately could result in dismissal. Generally speaking, lavish or unreasonable gifts or hospitality, whether these are given or received, are unacceptable as they can create the impression that we are trying to obtain or receive favourable business treatment by providing individuals with personal benefits.

The prevention, detection and reporting of bribery and corruption is the responsibility of all employees. MECHCAM provides a channel of communication for employees to report confidentially any suspicion of bribery or corrupt practice. If anyone is in doubt as to whether a potential act constitutes bribery/corruption, the matter should be referred to the Managing Director.
External parties wishing to raise any concerns should contact the Managing Director who will follow up any matters raised in confidence.

Personnel will be required to confirm that they have read, understood and comply with the policy as part of their ongoing employment assessment processes. In addition, relevant Personnel will be required to attend training to support the guidance in this policy.