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 adequate education and training so that they can fully reflect the channels of opinion and provide employees with reasonable benefits and remuneration according to local laws and regulations. Besides handling the relevant regulations of the local government, the company sometimes organizes gatherings, recreations, and other activities for staff.

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.

To provide full service and protection for customers, the company will communicate with customers immediately (via email, telephone, or exchange opinions with buyer QC during inspecting at the factory) in response to customer complaints to understand customer needs and promote the relationship between the company and customers.

Please contact the following (person) for more details:

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 bargaining with multiple suppliers, the company’s procurement staff decided after fully comparing unit prices, specifications, payment terms, delivery dates, product and service quality, or other information. The company has built a long-term relationship with suppliers. Besides, the company’s purchasing department will visit or inspect the supplier’s factory from time to time to communicate clearly on product quality requirements.

If the supplier has questions, you can call the company’s purchasing department (Tel: +606-9873999 #302) or write an email to [email protected].

Ref: Code of Conduct of TIL

The company makes the best use of various resources to reduce the load on the environment.

• The company implements energy conservation actions, such as switch off the lights and controlling the temperature of air-conditioners, to reduce the wasting of energy. Besides, it promotes the concept of energy conservation and carbon reduction in personnel in various departments. To fulfill the corporate responsibility of environmental protection.

The company will continue to establish environmental management systems that conform to the characteristics of the industry depending on the situation.

If you have any comments, you 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.