02/10/2024

BIZ & FINANCE WEDNESDAY | OCT 2, 2024

15

Living wage vital in promoting sustainability

Titijaya secures Press Metal as first customer for labour quarters project Halo KUALA LUMPUR: Titijaya Land Bhd has secured aluminium producer Press Metal Aluminium Holdings Bhd as the first customer for Housing, Accommodation, and Lodging (Halo), the group’s centralised labour quarters (CLQ) project in Klang Sentral. On Sept 30, Titijaya PMC Sdn Bhd, a subsidiary of the group, signed a MoU with PMB Aluminium Sdn Bhd, a subsidiary of Press Metal, setting the foundation for a long-term rental agreement between both parties. Under the terms of the MoU, PMB Aluminium will rent part of Halo for a minimum period of three years, accommodating at least 350 of its workers. The development of Halo, which will provide sustainable and hospitable housing for workers from surrounding industries, reflects Titijaya’s key focus on meeting demand for real estate developments that meet Environmental, Social, and Governance principles. The construction of Halo will commence during the 2025 financial year and is expected to be completed in 2026. Halo will be a 10-storey, purpose-built development capable of accommodating 3,000 workers. It will be compliant with International Labour Organization (ILO) standards, the Malaysian Government’s Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446), as well as international standards set by the Responsible Business Alliance. This way, he added they also strive to provide the best with their specially developed coatings that offer aesthetic superiority but also provide enhanced protection and longevity for their vehicles. Nippon Paint, Mara to boost automotive vocational and technical education MALACCA: Nippon Paint (Malaysia) Sdn Bhd and Majlis Amanah Rakyat (Mara) signed a MoU to collaborate on advancing technical and vocational education and training (TVET) in Malaysia. This partnership is to develop skilled professionals in the automotive coating industry. The automotive sector is a cornerstone of Malaysia’s economy, producing a record high total production volume of 799,731 vehicles in 2023, and the demand for a high skilled TVET workforce and quality automotive parts to support this goal is crucial. Mara external and international relations branch, skills and technical division deputy director Mohd Nizam Mokhri said the partnership will equip young Malaysians with industry-relevant skills and enable them to collaborate on advancing sectors like the automotive coating industry. Meanwhile, Nippon Paint general manager Tay Tze Tuck said: “This MoU marks a significant milestone for Nippon Paint as we continue to invest in the future of Malaysia’s workforce and automotive industry. In the highly competitive automotive refinishing segment, Nippon Paint Automotive Refinish is always pushing the boundaries further to stay ahead, setting new industry standards with the finest coatings for every type of vehicle for our Malaysian car owners.”

Directive,

increasingly

emphasise

the

o Finance professionals, including those in Malaysia, urged to tackle disparities and advocate socially responsible practices

importance of living wages. “Finance professionals in the Apac region including Malaysia must prepare to meet these growing demands for socially responsible practices, ensuring their organisations are well positioned for future regulatory requirements,” the report stated. ACCA Global CEO Helen Brand OBE remarked that accountancy and finance professionals are held to the highest ethical standards. She asserted that the right of all employees and contractors to a living wage is an ethical responsibility, providing finance professionals with a unique opportunity to make this a core part of their sustainability efforts. Shift president and co-founder Caroline Rees emphasised that a living wage is a fundamental human right. She noted that organisations’ responsibilities under international standards to respect human rights necessitate adequate compensation for workers within their own organisations, as well as leveraging their purchasing practices and business relationships to promote living wages throughout their value chains. Meanwhile, Forvis Mazars managing partner (London) Richard Karmel highlighted that organisations face significant transitions as their business models evolve toward sustainability. He said the inability to pay a living wage throughout a value chain, including within one’s own organisation, calls into question the sustainability of that business model. – Bernama

KUALA LUMPUR: Finance and accountancy professionals must confront wage inequality and take a leading role in promoting sustainable business practices, according to a report published by ACCA Global, Shift, and Forvis Mazars. Titled “A Living Wage – Crucial for Sustainability,” the report warns that without immediate action, wage gaps will continue to undermine economic and social structures globally, including in the Asia-Pacific (Apac) region. Based on insights from over 1,000 survey participants across 93 countries, along with discussions involving more than 50 finance and business professionals, the report provides compelling evidence of the socio-economic multiplier effect of paying living wages. It emphasises that compensating workers below a living wage hinders the preservation and development of human capital. “Business and investor initiatives involving leaders from across all regions increasingly highlight the importance of paying living wages to mitigate inequalities and related risks to societies, economies and financial systems. “Yet, only 33% of Malaysia-based respondents felt this responsibility extended to their first-tier suppliers, and even fewer beyond that,” the report noted. Additionally, the report underscores the PETALING JAYA: Life Water Bhd, a local beverage manufacturer yesterday entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Investment) for the company’s initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd (Bursa Securities). The IPO entails a public issue of 97,563,000 new ordinary shares (issue shares) and an offer for sale of 28,390,000 existing ordinary shares. Life Water is a beverage manufacturer specialising in the manufacturing and distribution of drinking water and carbonated drinks, primarily serving the Sabah market. The company’s operations are supported by its plastic packaging manufacturing and distribution channels, which enhances its overall business efficiency. Headquartered in Sandakan, Life Water also operates production facilities in both Sandakan and Kota Kinabalu, with strategically located distribution centres in Sandakan, Kota Kinabalu and Lahad Datu to ensure efficient delivery across the region. Its well-known home-grown beverage brands include K2, Sasa, and Sabah Water for drinking water, as well as 2more and TRITONiC for carbonated drinks. In addition to its own brands, the company also provides contract manufacturing services for private label drinking water for petrol stations, hypermarkets, wholesalers, and hotels. The gross proceeds from Life Water’s IPO have been allocated for significant business expansion initiatives, supplement working capital requirements, and defray listing expenses. These include the purchase of an additional drinking water manufacturing line for its Sandakan Sibuga Plant 1, and the establishment of a new manufacturing plant – Sandakan Sibuga Plant 2 with an estimated

undeniable link between living wages and sustainability, with 87% of Malaysia-based survey respondents acknowledging this connection. Living wages reduce inequality, enhance economic stability, bolster business resilience, support human rights, strengthen supply chains and respond to increasing regulatory and investor demands for socially responsible practices. From a Malaysian perspective, addressing wage disparities is particularly vital given the nation’s commitment to reducing inequality under the Madani economic framework. This framework seeks to elevate Malaysia’s dignity and status by focusing on two primary objectives: restructuring the economy to establish Malaysia as a leader among Asian economies and ensuring that the resulting wealth is equitably shared by the rakyat . By advocating for living wages, finance professionals in Malaysia can align business practices with national development goals. The report urges finance professionals to elevate discussions around living wages to the board level, integrate them into sustainability strategies, and lead by example within their value chains, starting with Tier 1 suppliers. Regulatory frameworks such as the European Sustainability Reporting Standards and the Corporate Sustainability Due Diligence

Life Water appoints MIDF Investment as underwriter, principal adviser for its IPO

Liaw and Nur Julie during the signing ceremony.

production capabilities and enhancing our distribution network, all while supporting our growing operations across Sabah. This marks an exciting chapter for Life Water as we strengthen our position in the beverage industry and continue to provide quality beverages at affordable prices to our customers.” MIDF Investment deputy CEO Datuk Seri Diraja Nur Julie Gwee Ariff said the drinking water industry, while often overlooked, is one of the most resilient sectors globally. Furthermore, she added that Life Water has positioned itself as a major player in Sabah’s beverage market, and the funds to be raised through this IPO will enable them to scale production, modernise facilities, and expand their distribution network. MIDF Investment is the principal adviser, underwriter and placement agent to Life Water for the listing exercise.

built-up area of 50,000 sq. ft. comprising both factory and office spaces. The company also plans to enhance its existing plastic packaging facilities in Kota Kinabalu with KK IZ8 Plant 1 to be converted into a dedicated plastic packaging manufacturing plant to support its beverage operations. Furthermore, Life Water plans to set up a second distribution centre in Sandakan, with a depot for its delivery truck fleet, as the current warehousing space is fully utilised. These expansions are aimed at supporting future production growth and enhancing operational efficiency across its beverage options. Life Water co-founder and managing director Liaw Hen Kong said, “We are thrilled to take this significant step forward with our IPO and are pleased to have MIDF Investment as our principal adviser in this journey. The proceeds from the IPO will enable us to accelerate our expansion plans, including upgrading our