Stakeholders Engagement

Prevent Insider Trading and Ethical Management

The company has established the “Procedures for Preventing Insider Trading,” which are publicly disclosed on the company’s official website. These procedures explicitly regulate that the company’s directors, managers, employees, and persons specified under Article 157-1 of the Securities and Exchange Act are prohibited from trading the company’s listed stocks or other equity-based securities on the stock exchange or at securities firms’ business premises upon becoming aware of material, price-sensitive information about the company. This restriction applies until the information is disclosed publicly or for 18 hours after its public disclosure.

Trading Restrictions During Blackout Periods

The company’s governance department will notify and remind directors via email each quarter that, in accordance with regulatory requirements:

– Directors are prohibited from trading the company’s stocks within 30 days prior to the announcement of the annual financial report.

– Directors are prohibited from trading the company’s stocks within 15 days prior to the announcement of each quarterly financial report.

Any violations will be handled in accordance with the company’s internal regulations and relevant laws.

In addition, the company distributes relevant regulatory information annually and periodically educates insiders (including directors and managers) on insider trading regulations. This is to strengthen compliance among insiders, prevent violations and penalties, and provide directors with continuing education courses or relevant regulatory discussion sessions to help them adhere to legal requirements.

For more details on the specific measures implemented each year to prevent insider trading, please click below:

The situation of implementing the prevention of insider trading in 2024.

The situation of implementing the prevention of insider trading in 2023.

The situation of implementing the prevention of insider trading in 2022.

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After taking office, insiders should observe:

* In the event of a board re-election or the appointment of new directors, the corporate governance unit will specifically prepare a handbook on insider trading regulations for newly appointed directors to review and understand the relevant laws. Additionally, all directors will be reminded to complete the required annual training hours in a timely manner.

To ensure the implementation of the company’s ethical conduct and integrity management policies, the “Procedures for Ethical Business Practices and Code of Conduct” and the “Ethical Conduct Guidelines for Listed Companies” have been established. Internally, the company also reinforces ethical awareness and encourages employees to report any suspected or discovered violations of laws, regulations, or ethical conduct guidelines to managers, internal audit supervisors, or other appropriate personnel. Employees are provided with sufficient information to enable the company to properly handle follow-up matters. Reports can be made through four channels: in-person reporting, telephone reporting, written submission, or email reporting. In the year 2024, there were no incidents of employees violating the Integrity Management Guidelines.

**Please refer to “Corporate Governance” -> “Major Internal Policies” and click ” Management Operation Procedures to Prevent Insider Trading,” “Procedures for Ethical Management and Guidelines for Conduct,” and “Ethical Code of Conduct” for more detailed regulations.

If you have any suggestions, you can contact us through the following channels:

– Submit to the company’s suggestion box

– Human Resources Department email: [email protected]

– Company email: [email protected]

– Company management representatives

The benefits of the employee include:

If employees have comments, they can submit them to the company suggestion box, human resources mailbox (email: [email protected] ) or contact the company (email: [email protected] ) or contact the company’s management representatives.

The company’s regulations on labor-management relations are under relevant laws and regulations (Retirement Laws and Social Insurance Law) and set up the employee suggestion boxes and other feedback channels. Besides, the company will hold training seminars every month to introduce the company’s existing rules and regulations, culture, workplace regulations, and create a safe and happy working environment for new employees.

If there is any information that needs to be conveyed, the company will communicate the results to employees as an email or information on the bulletin board after meetings and discussions in monthly management meetings.

If employees have comments, they can submit them to the company suggestion box, human resources mailbox (email: [email protected] ) or contact the company (email: [email protected] ) or contact the company’s management representatives.

Our company is committed to upholding the principle of respecting human rights, ensuring that all employees and stakeholders can work in a safe, fair, and inclusive environment. We adhere to international conventions and Malaysia’s labor laws, pledging to protect fundamental labor rights. Through a comprehensive management system, we proactively prevent human rights risks to ensure the company’s sustainable development.

Our company references and adheres to the following international conventions to ensure that our policies align with global human rights standards:

1. Article 23 and Article 24 of the Universal Declaration of Human Rights – Ensuring fair working conditions and equitable wages.
2. ILO Conventions No. 138 and No. 182 – Prohibiting child labor and hazardous work for children.
3. Articles 24 and 32 of the United Nations Convention on the Rights of the Child – Providing prenatal and postnatal medical care for pregnant employees and implementing mother-and-child-friendly measures; ensuring no employment of child labor and preventing children from engaging in work that endangers their physical and mental well-being.

The summary of our specific management plan is as follows:

1. Measures to Mitigate Human Rights Risks

A) Prevention of Workplace Sexual Harassment Our Company’s Measures:

★ Annual “Prevention of Workplace Sexual Harassment” seminar to promote the regulations regarding sexual harassment under the 1955 Employment Act. Any similar incidents will be severely punished without leniency.
★ Workplace Promotion: Posters are displayed to prevent sexual harassment, and an anonymous reporting system (suggestion box) is in place to ensure a safe working environment for employees.

B) Child Rights Protection and Mother-Child Protection Measures Our Company’s Measures:

★ Zero Child Labor Policy: Strictly enforce the minimum age hiring standards and prohibit the employment of individuals under 18 years of age.

★ Mother-Child Protection Measures:

1. Postpartum Leave System (98 days) to allow mothers to properly care for their newborns.
2. Establishment of breastfeeding rooms to create a mother-and-child-friendly workplace environment.

C) Labor Conditions and Fair Compensation Our Company’s Measures:

★ Comply with Malaysia’s minimum wage standards (effective from February 2025, RM1,700 per month), ensuring all employees’ compensation meets legal requirements.

★ A gender-neutral salary and promotion system, ensuring equal pay for equal work and fair competition, with female employees equally eligible for management positions.

2) Human Rights Training Our Company’s Measures:

We conduct at least one human rights training session per year, covering topics such as:

★International human rights conventions and company policies

★ Labor rights, prevention of workplace sexual harassment, child labor prohibitions, etc.

★ Internal anonymous grievance mechanism (such as a suggestion box), ensuring employees have appropriate channels for reporting.

3) Policy Transparency and Implementation Mechanism Our Company’s Measures:

★ The human rights policy is publicly disclosed on our official website and in the employee handbook, ensuring that all employees and stakeholders can access and follow it.

★ Third-party audit mechanism: Review third-party audit reports annually to ensure the effective implementation or improvement of policies.

★ Reporting and grievance channels: Establish an anonymous reporting system to ensure employees can safely report violations.

The company has a “Policy on Safety and Health at the Workplace” and a Safety Committee. The committee’s responsibility is to formulate, implement, and publicize plans related to safety maintenance management. The committee aims to strengthen the safety and hygiene of the working environment. It is committed to improving its employees’ safety and health and reducing the working environment’s impact on employee safety and health. Hazards, as other safety and health promotion matters, etc., set the priorities and action plans that should be implemented yearly.

Education Training

Ensure that employees are familiar with relevant occupational safety and health regulations and the company’s safety maintenance operation. The company will organize education and training from time to time and remind employees to raise safety awareness through emails and notices to ensure that employees always abide by workplace safety rules. The company held eleven safety education and training seminars in 2022. The company also promoted the company’s safety protection and health education and training to new employees. The following are some examples of relevant safety education and training:

• Workplace Safety 5S Promotion Seminar: The 5S includes Sisih, Susun, Sapu, Seragam, and Sentiasa Amal to ensure that employees always abide by workplace safety rules.

• Prevention of Sexual Harassment in the Workplace Seminar: The company also holds regular lectures on the topic of “Prevention of Sexual Harassment in the Workplace,” focusing on publicizing issues related to sexual harassment under the Employment Act of 1955 and posting promotional posters on the company’s board newspaper.

• Fire training and additional fire equipment: The company has established “fire emergency measures” and holds various training courses focusing on publicizing fire prevention education and related safety awareness. The company has invited the Malaysia Fire Safety Team (Latihan Pasukan Keselamatan Kebakaran, or ERT) to conduct professional training for employees. In addition, the company has also added fire protection equipment, such as fire sprinkler systems, fire extinguishers, and fireballs, in each factory and obtained certification from the fire department. 

• Safety standards, operating procedures, education, and training: The company formulates and strengthens the promotion of safety protection rules, such as publicizing the key points of safe operation of machines and forklifts, instilling knowledge of chemical hazards, personal protective equipment, prohibiting smoking in the work area, maintaining a clean and tidy working environment, etc.

Techcential International Ltd. aims to create a safe working environment and a healthy and friendly workplace for employees, so that they can work with peace of mind, and continues to promote safety-related publicity, education, and training, hoping to achieve “everyone’s safety” and implement safety and health management of the three protections of industrial safety: “self-care, guardianship, and mutual protection.”

Promoting “Workplace Diversity and Gender Equality” and the Implementation of Relevant Policies

1. Comply with Malaysia labour regulations to protect employees’ legitimate rights and interests, while respecting internationally recognized fundamental labour rights principles. Prohibit all forms of forced labour and child labour, ensuring no violations of fundamental labour
2. Respect the principles of basic labour rights protection by providing a workplace free of harassment, violence, unlawful discrimination, and ensuring religious freedom and freedom of association. Prohibit all forms of harsh or inhumane treatment.
3. Promote workplace diversity and gender equality policies to safeguard the labour rights of vulnerable groups such as middle-aged and elderly workers, women, foreign workers, and persons with disabilities, offering equal employment opportunities.
4. Implement a gender-neutral compensation system, a fair evaluation and promotion system, and emphasize the appointment of women to managerial positions.
5. Provide employees with a safe and healthy working environment, including the necessary health and first-aid facilities. Strive to reduce factors that may harm employees’ safety and health to prevent occupational hazards.

i) Employee Ethnicity Indicators：

ii) Female Diversity Indicators：

iii) Other Diversity Indicators：

“Pay Equality” Specific Practices 

The company provides employees with a competitive, transparent, and equal pay policy, regardless of gender, reflecting operational performance. Due to the nature of the industry, there are more male employees; however, the company continues to strive to create a diverse workplace and offers gender-neutral compensation. For individuals with relevant professional qualifications and work experience, compensation is determined based on their academic background, expertise, and certifications, with no differentiation based on gender or ethnicity.

Malaysia’s 2012 Minimum Retirement Age Act take effect on July 1, 2013, stipulated that the minimum retirement age for employees should be 60 years old. Applicable to all employees in the private sector in Malaysia. It is a crime for any employer to dismiss an employee before the employee reaches the minimum retirement age of 60. Once convicted, the fine is not more than RM10,000.

The Employees’ Provident Fund (EPF) is a government-managed retirement savings scheme that is mandatory in countries such as India, Hong Kong, Singapore, Malaysia, Mexico, and others. It is similar to the Social Security system in the United States. Malaysia’s Employees’ Provident Fund (EPF/KWSP) was established under the Employees’ Provident Fund Act 1991 (Act 452) to provide retirement benefits to members through mandatory contributions from both employers and employees. The EPF offers a convenient framework for employers to fulfill their legal and ethical obligations by making continuous monthly contributions to employees’ retirement fund accounts.

The monthly contribution rate for the Employees Provident Fund is as follows:

1. Employees: Employees aged below 60 years old are required to contribute 11% of their monthly salary, which will be deducted directly from their salary. Starting from August 2022, employees aged 60 years old and above are exempted from contributing to the monthly Employee Provident Fund.
2. Employers: For employees aged below 60 years old, the contribution rates are as follows: 13% for monthly salaries of MYR5,000 and below, and 12% for monthly salaries exceeding MYR5,000. Starting from August 2022, employers are required to contribute a minimum of 4% to the Employer Provident Fund for employees aged 60 years old and above.

To ensure employees’ future retirement security, the company complies with Malaysia’s Labor Standards Act and Pension Regulations to support retired employees in both work and life.

• Employees who reach the age of 60 during the year shall retire by the law, with December 31 of the same year considered their official retirement date. The company will provide prior written notice to terminate the employment relationship.
• Before reaching the age of 60, both parties may consider extending the employment contract or agreeing on a fixed-term extension, allowing the employee to continue working. Upon final retirement, the company will provide the corresponding retirement benefits by Malaysian regulations.
• The company’s payable gratuity amount (based on the employee’s years of service) are as follows:
  

  Years of Service	Gratuity Amount
  10 to 15 years	1 month’s basic salary
  15 to 20 years	1.5 month’s basic salary
  20 to 25 years	2 months’ basic salary
  25 to 30 years	2.5 months’ basic salary
  More than 30 years	3 months’ basic salary

The Social Insurance Organization (SOCSO) implements the Work Injury Insurance Plan by the Employee Social Insurance Law in 1969 and the Employee Social Insurance (General) Regulations of 1971. The Social Insurance Organization provides medical treatment, cash compensation, prosthetics, and rehabilitation training.

The social insurance agency provides 2 insurance plans, which are the Work Injury Insurance Plan and Disability Pension Plan.

The company provides employees with comprehensive training, open channels to express their opinions, and reasonable benefits and compensation in accordance with local laws and regulations. In addition to complying with the relevant requirements of local governments, the company also organizes occasional gatherings and recreational activities to support employees’ physical and mental well-being.

If there is any information that needs to be communicated, the company will do so through face-to-face meetings, by discussing it during the monthly management meetings, and then sharing the relevant outcomes with employees via email or posting printed notices on bulletin boards.

• The issues of greatest concern to employees mainly include the company’s recent operational status and future development plans, updates to local labor laws (e.g., minimum wage regulations), reforms to certain company policies (e.g., full online leave application), and updates to employee welfare systems (e.g., benefits for retired employees). The primary methods of response include face-to-face discussions, surveys, and email communication.

If employees have questions or suggestions, they may contact company representatives through the following channels:

• Company suggestion box
• Human Resources Department (email: [email protected])
• Company email (email: [email protected])
• Scheduling appointments with departmental representatives during office hours

To provide customers and clients with comprehensive service and assurance, the company maintains real-time communication based on client needs (via email, phone calls, or discussions during factory inspections by buyer QCs) to better understand their requirements and enhance the effectiveness of interactions. Customer feedback is regularly reviewed and improvements discussed during weekly production and sales meetings as well as quality control meetings.

In addition, to maintain product quality and ensure that the company’s working environment complies with regulations and aligns with international ESG trends, clients may commission third-party agencies to conduct unannounced factory audits throughout the year. These agencies issue audit reports to communicate areas needing improvement. The company fully cooperates with such audits and will communicate and report any follow-up improvements (if necessary) to auditors and clients.

Since 2019, the company has maintained a showroom at the annual Kuala Lumpur Furniture Fair, inviting existing clients to visit and learn about new product designs. The company also participates in four international furniture exhibitions held annually in the United States to visit both current and potential clients’ showrooms, helping the company better understand trending products and customer needs.

• Key issues of concern to clients include the stability of product quality, accuracy of delivery schedules, and whether the company’s working environment is managed in accordance with international ESG standards. The main methods of communication are via email, phone, and face-to-face interactions.

If clients wish to learn more about the products, they are welcome to contact:

TC General Manager – Kyle Eng (Tel: +606-9873999#110; Email: [email protected])
or
TC Marketing Manager – Frank Chong (Tel: +606-9873999#105; Email: [email protected]).

After inquiring, comparing, and negotiating with multiple suppliers, the company’s procurement personnel make decisions based on thorough evaluations of unit prices, specifications, payment terms, delivery schedules, product and service quality, and other relevant information. The company aims to build long-term, close relationships with suppliers based on mutual trust and benefit, with a shared goal of achieving sustainable and mutually rewarding growth. Additionally, the Procurement Department conducts occasional site visits or inspections at suppliers’ facilities to ensure clear communication and alignment on product quality standards.

• Key issues of concern to suppliers mainly include the company’s recent operational status, and whether the quality and delivery timelines of their products meet the company’s requirements. Primary communication methods include product yield data, supplier satisfaction surveys, as well as phone and email communication.

If suppliers have any questions, they may contact:

Company Procurement Department (Tel: +606-9873999 #302)
Procurement Department staff
Or email: [email protected]

Ref: Code of Conduct of TIL

The company is committed to maximizing the efficient use of resources to reduce environmental impact.

We implement energy-saving initiatives, such as turning off lights when not in use and regulating air conditioning temperatures, to minimize energy waste. Additionally, we regularly promote energy conservation and carbon reduction awareness among departmental staff to support our goals of energy savings and greenhouse gas reduction, thereby fulfilling our environmental responsibilities as a corporation. Going forward, the company will progressively establish environmental management systems tailored to industry characteristics as needed.

If you have any suggestions, please feel free to contact us through the following channels:

• Company suggestion box
• Human Resources Department (email: [email protected])
• Company email (email: [email protected])