Statement of continued support

7 Feb 2018

To our stakeholders:

I am pleased to confirm that Max Myanmar Construction Co., Ltd. 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,

Khin Maung Tint

Vice-Chairman
Max Myanmar Construction Co., Ltd.

Max Myanmar Construction policies and procedures are aligned with Myanmar Labor Law and comply with Universal Declaration of Human Rights (UDHR). And also, we respect and protect human right by supporting non-discrimination, safe and healthy environment in our daily workplace. We have already implemented the corporate HR policies, strategic HR policies and operational HR policies and procedures since 2015. These policies were updated and amended in 2016 that still applies in currently.

Max Myanmar Construction has another 4 branches in Mandalay, Naypyitaw, Insein Mechanical Office and No.3 Highway Office where practice same policies and procedures with head office. Not only policies and procedures but also same benefits implement in branch office. Every new policy set up by head office and was distributed to all branches by communication channel. All of our employees can download all of our HR policies on website.

Max Myanmar Construction strictly applies and follows updated Myanmar Labor Law such as leave and holiday Act of Myanmar and Human Rights policies. Employees are entitled to participant as members of Social Security Board (SSB) and they paid the government tax regularly. We always check to be sure no discrimination and equal opportunities in workplace. We have standard procedures and regulations for recruiting, yearly salary increment, promotion, demotion or dismiss that comply with Myanmar Labor Law.

We held engineer job fair in 2017. We were able to provide internship training for new graduate students in archi and civil department up to three months. We provided safety guideline book and personal protective equipment to internship trainees who were also given safety training by department head.

Max Myanmar Construction have organized human right committee in 2015 and included 17 members who involve our vice chairman and executive director. We planned to organize workplace coordination committee in 2018 including two employees from employer’s side and another two employees from employees’ side. Both parties will solve all problems and conflict between employee and employer. We amended our existing employee handbook aligned with updated Myanmar Labor Law and will give it to each employee.

We provide regular safety training to new employees and existing employees monthly. We support vocational training and other career development training to our employees according their requirements and company needs.

In 2017, we had successfully provided the internship training for 6 students in archi department and 18 students in civil department. We have non-human rights contravention and zero major accident in last year. All the training documents were translated by both Myanmar and English to be more convenience for trainees. We had employed 10 % of new employees from engineering job fair and have provided our learning opportunities among the engineering community.

We supported 6 employees to visit Bangkok for getting new site experiences. Occasionally, we sent our employees to seminars. We have found out neither labor issue nor complaints to solve in government labor office within 2017.

We advertise and employ the required positions on online website without any discrimination based on gender, religion, national origin, age, sex, race, disability, and sexual orientation.

Max Myanmar Construction fully follows the National Labor regulations and quarterly updated in accordance changes of regulations. We have fund for welfare to motivate our employees, loan and other allowances as well. Our human resources department has new written policies and procedures that were thoroughly explained to employees including compensation and benefits and was approved by our management. Max Myanmar Construction issued and addressed the following policies currently:
- Employee Relations Policy
- Whistle Blowing Policy
- Grievance Handling Policy
- Policy on use of Force by Security Personnel
- Policy on Children at Work: Children in the Workplace policy
- Equity and Diversity Management Policy
- Human Resource Development Policy
- Occupational Health and Safety (OHS) Policy
Then, all the policies can be downloaded from both our construction and holding websites.
We are strictly prohibited to employ child labor in not only our company but also our contractors. Moreover, our whistle blowing policy was strongly implemented within our employees, and we have opened communication channel from bottom to top level. All company policies and procedures were clearly mentioned in employee handbook that was distributed to each employee.

We support money to our employees as a wedding gift, condolence money on death of the employees’ parents, spouses and children, childbirth and long service. Due to employee relations policy, we always implement the annual survey program. Furthermore, company offers yearly government school entrance fees for employees’ children who are currently attending in primary, middle and high school. According to establish and implement the whistle blowing policy, suggestion box was placed in every site in tend to submit the freedom of speech and equality from employees. We are strictly prohibited child labor including our contractors and issued the children in the workplace policy as defined in Myanmar Labor Laws as individual of less than 18 years of age. Football matches were monthly held in tend to motivate and unit the employees and then to reduce the stress by Max Myanmar Construction.

We do not subject its employee to any form of discrimination based on gender, race, religion, color, age or sexual orientation with equal opportunity and fair treatment in our recruiting process and every welfare activities. Furthermore, discrimination of any kind on ethnic origin is not tolerated in workplace and any incidence is tackled and penalized very strictly.

We offer the benefits package such as meal or meal allowance, ferry or transportation allowance, uniform, Chairman long service reward, loan with free interest rate by appropriate installments and AYA credit card apply. Then, we provide personal protective equipment to our employees and internship trainees to prevent the accident and target the zero accident in our work place. We set up HSE policy that was orientated to every new employee, and HSE handbook was distributed to every employee and contractor.

Not only knowledge sharing program but also hard skills and soft skills training were held once a month in Max Myanmar Construction. We always plan and draw the yearly learning and development program. For the future professional development and carrier development plan for our employees, we provided the following internal and external training as follow in 2017:
- First aid and Safety Training,
- English speaking training,
- Personal grooming training,
- Over view of Organizational change training,
- Personal hygiene and office sanitation with corrective actions,
- Construction safety orientation course and risk management,
- Future leader program for middle management workshop,
- Future leader program for top management workshop
- Global Color Trend training and
- Lighting Product & Lighting Design training.

We are absolutely zero child labor and zero accident in work place and reviewed employment policies whenever new Myanmar Labor Law was came out and updated.
Max Myanmar Construction borrowed 25 employees as loan. We greatly value our loyal staff who worked with Max Myanmar Construction for six years or more years if so we rewarded around 522 employees as chairman long service in every month. We employed and provided orientation to 65 new employees in 2017. Furthermore, Max Myanmar Construction supported to 267 employees for hard skills training and 285 employees for soft skills training. In order to get more knowledge about human resources, we always send 3 staffs to Dr. Aung Tun Thet seminar once per two weeks. We proudly sent 5 employees to JICA Vocational training for four months with fully salary and benefits.

Max Myanmar Construction will accept the complaints from employees by communication channel such as phone, email, verbal, social media and suggestion box. We composed work place cooperation committee which includes both employers and employees in order to solve the issues and conflicts between employees and employers. We offered the pocket money to around 900 staffs in Thidingyut and Thingyan Festivals.

We fully provided hostel to around 318 employees in Yangon region, around 30 employees in Naypyitaw region and around 27 employees in Mandalay region. All internal memos and other announcement letters were hanged on every notice board.

Max Myanmar Construction fully complies with the environmental laws and regulations enact by the Ministry of Environmental Conservation and Forestry of Myanmar whenever company has to build or renovate both buildings and roads.

Furthermore, we are strongly prohibited our employees and contractors to against or destroy concerning environment among the work place. Then, our company gave 5 S such as sort, stabilize, shine, standardize and sustain training to all our employees in 2017 and will be implemented in 2018 in order to aware how to maintain the environment and reduce the environmental critical impacts.

We always plan and draw the CSR activities for coming year and implement in actual year. And then, we announce the date and time to our employees ahead in order to fully participate in CSR activities. We started the camping by using and maintaining a paper-recycling to promote our company reputation and save the environment and public in beginning of 2017.

Max Myanmar Construction issued and addressed the following policies currently:
- Land Acquisition Policy and Guiding Principles
- Waste Management Plan
- Emergency Response Plan
- Corporate Communication Policy
- Corporate Social Responsibility

Max Myanmar Construction always thoroughly emphasizes to both reduce and prevent the environment impacts in work place. Then, we gave the training to our employees to aware how to maintain the environment through correct ways and procedures. Due to save in maintenance the money and energy, we replaced all the electric bulbs to LED bulbs which are extremely energy efficient roughly 75 percent less energy and consume up to 90% less power than incandescent bulbs and much cooler than incandescent lights in head office and all branches offices.

In October and November, we gave 5 S to training to our employees including management team and start to apply in Head office. Moreover, we stick the green saving awareness poster, “If you are the last to leave the room or whenever they are not needed, please turn off the lights” in every room and warn to employees occasionally before they leave the rooms. It can save 90 percent of the energy they use is given off as heat, and also keep a room cooler, and an extra benefit in the summer. Due to reduce the usage of air-condition, it can be reduced air-condition capacity and saved the energy.

For internal communication, we use email communication channel called “Zimbra” mail and electronic faxes replace the need to print is to use less physical space when bulky filing cabinets are eliminated or reduced and reduce the use of ink and paper. We can reduce our carbon footprint by a landslide just by going paperless, and also our company becomes greener and company reputation goes up.

All employees are practicing to use recycled paper for internal reporting and sample printing in departmentally or between departments and also, both sides of paper is applying in currently. Using recycle paper instead of new paper reduces the number of trees that are cut down, conserving nature resources, go far beyond saving trees and reduce the amount of pollution in the air from incineration.

Our company starts to implement to use Low E Glass substitute of normal glass in our constructed buildings due in part to its constantly increasing solar and thermal performance. Low-E glass coating can get the benefits as reflecting heat back to its sources and more cooler in the summer and warmer in the winter against UV fading of any nearby furniture. Then, it reduces the radiant heat loss through the glass.

Changing green environment reduces the pollution to our waterways and the air and it minimizes our impact on ozone depletion if not it will pollute with contaminants and toxins that have a harmful impact on our health. Max Myanmar Construction employees always switch the floor and pick up the rubbish in the compound of Yankin Children Hospital once per three months.

On the other hand, we did a lot of CSR programs in 2017. Then, we are connecting with AYA foundation, and our employees donate the blood to the patients from foundation. We supported the food, transportation and regard as on duty day for this employees. In every New Year, we recite the Paratha in every heavy project. We donated money, rice, cooking oil and medicine to Yellow Generation Wave orphanage house in order to grow them up healthy and well-nourished.

When we construed buildings and roads, we are applying and implementing noise control system and procedures and comply with city noise codes that was started to implement in 2017. For both permanent and construction noise control, we are trying to use all noise control curtain panel intend to avoid litigation from neighbors, reduce outdoor construction and/or community noise, and end costly delays and work stoppages due to noise.

Moreover, we are coordinating and cooperating with Yangon City Development Committee that was addressed waste control management system. Then, we are following the waste control management procedures according with Y.C.D.C laws and guidelines.

Max Myanmar Construction arranged 5 S (Sort, Stabilize, Shine, Standardize and Sustain) awareness training over 65 employees in 2017 and aimed at to clean and create the green environment among the work place. Then, it prevents the various kinds of diseases by insects. Causing to reduce the pollution and getting fresh air, our employees cleaned four times in Yankin Children Hospital compound in 2017.

Around 30 employees were donating their blood to the necessary patients from AYA Foundation intend to saves a lot of lives. We are normally using around 62500 papers in every month in Head office. Another one-third of 62500 papers usage in other two offices in Mandalay and Naypyitaw and two-third of 62500 papers usage in Insein Mechanical Office and No.3 Highway Office. Usage of paperless system in Max Myanmar Construction, we can reduce one third paper from total number.

An anti-corruption program has many advantages such as demonstrating a company's response to the legal obligation and responsibility to reduce the risk.

Myanmar Construction is committed its business in an honest and ethical manner and in compliance with all applicable laws and regulations, including local corruptions laws and other applicable laws that prohibit bribery. Max Myanmar Construction straightly prohibit about the cases of corruption, including extortion and bribery between our employees and contractors and suppliers such payment, offering promises of payment, as well as giving offering or promising of anything of value directly or indirectly to representative of contractors, suppliers and Government official. We have policies and procedures of penalty concerning anti-corruption that thoroughly applies and adheres in head office and every branch offices.

We composed anti-corruption committee with 20 members who prevents and deeply commits to apply policy in work place. We issued and addressed Anti-Corruption Policy which applicable to all our employees, contractors and suppliers. Unsuccessful to comply with this policy may result in disciplinary action, including termination of employment and breaking the contract for long term with suppliers and contractors.

We have strong policies, procedures and principles for choosing suppliers and contractors in Max Myanmar Construction. All the employees must to aware these policies and will be penalize to the non-compliance employees. The anti-corruption reporting by companies demonstrates a broader commitment to corporate transparency, accountability and sustainability.

Max Myanmar Construction is proudly to maintain our good reputation avoiding the anti-corruption, including extortion and bribery. To prevent corruption and bias when choosing suppliers and contractors, we openly held contract and procurement meeting in every Wednesday with our management including vice-chairman, executive directors and directors.

Max Myanmar Construction didn’t allow opening the applied contractors and suppliers’ envelope in advance before this meeting. All the relevant employees concerning with purchasing or calling tender open the tender envelope together on Wednesday, all the management have compared and chose the tender in meeting openly.

Furthermore, when we gave the hostel, we are dividing the room through their marks, rank and level of positions that were set up as standard by management. Promotion, demotion, and annual salary increment are also implementing as the results of assessments that is standard. Then, we employed the new employees depending on the mark of their interview assessment result through three stages of 1st interview by HR Manager, 2nd interview by relevant department head and HR Manger and 3rd interview by Vice Chairman and Director to protect corruption and bias. We hired third party for external audit for our finance and account department yearly.

We always held monthly cooperation meeting including all site managers and management team.

Max Myanmar Construction has occurred zero anti - corruption cases in 2017 including non-external bribery among employees, contractors and suppliers. Furthermore, we are always updating our policies comply with local corruption laws.

Our management is seriously taken the action when it is found out and happened. There was zero corruption case found by external audit in finance and account department. Legal protection is also assured comply with Myanmar Labor Law.

Max Myanmar Construction was thoroughly investigated and reported about anti-corruption matter to our management by employees.