Chairman's Message

Reflections from Our Chairman
Dear Shareholders, a message of purpose, integrity and strategic focus from Tan Sri Wan Zulkiflee Wan Ariffin, Independent Non-Executive Chairman of Malakoff Corporation Berhad.
Reflections from Our Chairman
I am honoured to carry forward the stewardship of Malakoff Corporation Berhad (Malakoff or the Group) at a time of meaningful transition and renewed ambition, since assuming my appointment to the Board as Chairman on 1 March 2026. It is a responsibility I embrace with a deep sense of purpose, guided by the trust placed in me by the Board and driven by the commitment to lead the Group with clarity, integrity and strategic focus.
Malakoff's development has closely mirrored Malaysia's own energy journey, from supporting industrial expansion to meeting today's evolving expectations. This progress aligns with national priorities that outline the country's transition towards lower-carbon, resilient and inclusive socioeconomic development. As we proceed under the National Energy Transition Roadmap (NETR) strategic blueprint to accelerate clean energy deployment, enhance climate resilience and steer the nation towards a high value green economy, we are also advancing the nation's wider ambitions in circularity, resource efficiency and green economic development as planned under the Circular Economy Blueprint for Solid Waste in Malaysia (2025–2035).
Tan Sri Wan Zulkiflee Wan Ariffin
Independent Non-Executive Chairman
50 Years On
Marking five decades of operations, Malakoff's role continues to be anchored in the dependable supply of power, while progressively adapting its portfolio and capabilities to remain relevant in a changing business landscape. 50 years on, Malakoff continues to evolve into an integrated Energy and Environmental Solutions provider. Built on decades of operational experience, a commitment to decarbonisation and a clear ambition for cleaner energy, we are responding to rising energy demand and increasing climate volatility with measured innovation, while remaining grounded in the operational strengths and institutional experience that defines us.
A Complex Operating Backdrop
2025 unfolded against a complex operating backdrop, marked by persistent cost pressures, evolving regulatory expectations and structural adjustments in the energy market dynamics. These challenges were accompanied by a stronger national push towards cleaner energy pathways, as Malaysia deepened its commitment to renewable deployment and low carbon development under its long-term transition policies. Within this environment, our priority has remained on safeguarding financial and operational soundness through rigorous oversight of risk management, capital allocation and asset performance.
In Malaysia, the energy trilemma of balancing energy security, environmental sustainability and affordability continues to guide national policy and sector priorities. This places greater expectations on industry players to ensure reliability, decarbonisation and affordability progress in tandem with Malakoff remaining a key pillar of the nation's energy system.
Our long operational history, diversified asset base and proven reliability position us to support the country's evolving needs while contributing to its transition ambitions. Energy security, sustainability and affordability are interdependent considerations that continue to influence Board deliberations. These considerations influence how risks are assessed, how capital is deployed and how the Group's portfolio is managed across different stages of the energy transition. In the Malaysian context, the transition is inherently non-linear and gradual, with conventional assets remaining essential to ensuring system reliability and meeting contracted power supply obligations.
The year also saw persistent geopolitical tensions in the Middle East, which continued to influence global oil and gas markets, intensifying uncertainty around supply security and shipping routes. Although Malakoff's reliance on domestic and regional gas producers insulates the Group from direct supply disruptions, prolonged instability may still exert upward pressure on input costs. Buyers traditionally reliant on Middle East supply may shift to alternative markets, tightening global competition for fuel. While the immediate impact on Malakoff remains limited, we continue to monitor these developments closely to assess any potential implications for Malaysia's wider energy landscape.
Operating in a Growing Economy
Global growth remained resilient in 2025, supported by strong tech-related exports amid AI-driven investment, easing inflation and supportive fiscal and monetary policies.
Malaysia GDP Growth
Malaysia continued to benefit from firm domestic demand and stronger than expected economic momentum, as reflected in the country's annual Gross Domestic Product (GDP) growth of 5.2% year-on-year (YoY).
Data Centre Boom
Data centres have become a key source of foreign direct investments, supporting the nation's digitalisation ambitions. Malaysia's growing prominence as a regional data centre hub provides a conducive environment for the expansion of Malakoff's core businesses.
Regional Export Strength
Several economies throughout the region saw stronger export growth backed by robust electrical & electronics demand, including AI-related components and the operationalisation of data centres.
Malaysia's continued expansion in services, infrastructure development and consumption-driven activity contributed to firmer electricity demand fundamentals, reinforcing the relevance of our thermal assets while spurring renewable energy (RE) deployment. At the same time, the country's increasing emphasis on sustainability and circular economy initiatives further supported the growth trajectory of our Environmental Solutions segment, particularly in waste management, Waste-to-Energy (WTE) development and recycling capabilities.
Overall, Malaysia's positive economic performance in 2025 provided a firm footing for us to focus our strategic lens on pursuing opportunities within our core business sectors, aligning our efforts with the nation's broader transition agenda and sectoral needs.
Unlocking Potential
Against this macro backdrop, we continued to execute our strategic transformation and growth agenda in the two main business segments: Energy and Environmental Solutions.
The Group is leveraging its assets and resources to drive systemic change, advance climate adaption strategies and deliver long-term value. Nevertheless, we understand that it is no easy task, as operating in the rapidly evolving energy and environmental spheres demands a clear understanding of how existing assets, capabilities and partnerships can be mobilised to respond to industry-wide transitions, climate risks and shifting stakeholder expectations.
In response, we have been reinforcing the reliability of our power generation assets, while accelerating capabilities within the Environmental Solutions segment to address rising demand for sustainable waste and resource-management services. This includes delivering clear strategic milestones by securing and developing new gas plants and pursuing RE expansion.
Ongoing developments are also gearing up within the Environmental Solutions segment, which encompasses both concession and non-concession waste management operations and WTE activities. This balanced approach ideally positions our business portfolio to translate positive operational outcomes and elevate the Group's role in the Energy and Environmental Solutions value chain.
Strategic Plan 2026–2030: Setting the Baseline
Building on the momentum of the Malakoff 2.0 Strategic Transformation introduced in 2021, the Strategic Plan 2026-2030: Setting the Baseline charts a more decisive course forward. Setting the Baseline serves as a strategic health check, assessing the Group's readiness to pursue growth with greater ambition, supported by disciplined capital allocation, expanded capabilities and targeted capacity building. This approach provides the foundation to accelerate Malakoff's evolution into an integrated Energy and Environmental Solutions provider, unlocking stronger growth and long-term relevance.
Thermal & Renewable Energy Balance
We are at a pivotal point as we continue with measured expansion of our Energy and Environmental Solutions portfolio, alongside the dependable performance of both the existing thermal assets and burgeoning RE capacity. While thermal generation remains the backbone of the Group's business and operational footprint, we are scaling up the Group's development of RE initiatives and environmental services in tandem with national policy direction, including the country's energy shift, environmental sustainability and circularity agendas.
RE Capacity: 766 MW Secured
Our RE presence continues to strengthen with total secured capacity now standing at 766 MW, supported by the addition of the landmark LSS PETRA 5+ project in Perak and other new ventures.
Environmental Solutions: A Strategic Pillar
As Environmental Solutions continues to evolve into a more strategic pillar within the Malakoff Group, its role is increasingly complementary to the Energy segment. This expansion is expected to deepen operational capability and fortify the Group's underlying stability, with the Energy segment continuing to deliver steady and dependable outcomes.
E-Idaman Acquisition
The strategic acquisition of a 49% stake in E-Idaman Sdn. Bhd. expands waste handling capacity and boosts our market presence in the northern states of Peninsular Malaysia.
WTE Concession — Sungai Udang, Melaka
The awarding of the 34-year WTE concession in Sungai Udang, Melaka is expected to process up to 1,056 tonnes of municipal solid waste per day and generate approximately 22 MW of RE capacity upon completion, positioning Malakoff at the nexus of waste management and clean energy generation.
RISE KL Recycling Centre
The Recovery Initiative Sustainable Eco-Facility, Kuala Lumpur (RISE KL) recycling centre processes up to 50 tonnes of recyclable waste per day and supports national sustainability objectives, continuing to elevate recycling and circular economy solutions.
Alam Flora Waste Collection
Through Alam Flora Sdn. Bhd. (Alam Flora), we recorded a 2.0% YoY increase in domestic waste volumes collected across Kuala Lumpur, Pahang and Putrajaya in 2025, reflecting higher service demand and improved operational performance.
Over the medium term, Environmental Solutions is expected to provide a stable and scalable foundation for the Group, working in tandem with the thermal portfolio and RE businesses to support a balanced and resilient performance.
Driving Purpose, Delivering Results
The Group's performance for the financial year ended 31 December 2025 (FY2025) reflected a resilient operating stance, despite softer contributions from the Energy business. Steady portfolio delivery and improved contributions from Environmental Solutions underpinned this outcome, complemented by effective execution, strong risk oversight and the maturation of long-term contracted projects.
Dividend Policy
In line with the Group's established dividend policy of distributing at least 70% of the Net Profit Attributable to Equity Holders of the Company (PATMI), the Board remained guided by a prudent approach to shareholder returns.
FY2025 Dividends
Interim Dividend
1.50 sen per ordinary share — RM73.3 million, paid on 27 October 2025.
Final Dividend
0.86 sen per ordinary share — RM42.0 million, approved for FY2025 and expected to be paid in May 2026.
Our People, Our Strength
We are determined to outperform the expectations placed upon us by our stakeholders, our industry and ourselves. As the organisation enters into the next growth development phase, our emphasis remains on nurturing a workforce whose capabilities can support both present operational demands and the longer-term maturation of our businesses.
Malakoff operates in an energy sector that plays an important role in Malaysia's workforce. With this responsibility, we are committed to upholding fair labour practices and protecting the well-being of our people.
Safety, Respect & Dignity
We believe organisational resilience starts with a workplace built on safety, respect and dignity. This is reflected in the occupational safety and health standards applied across the Group, which focus on effective risk management, hazard control and continuous improvement.
Evolving Workforce Capabilities
As the energy industry shifts in response to technological change, sustainability expectations and shifting market dynamics, workforce capability requirements are also changing. We are strengthening skills across key functions and equipping employees with the operational, technical and sustainability-related capabilities needed to navigate complexity and support Malaysia's energy transition.
Leadership Continuity
Central to this effort is the cultivation of leaders who can guide teams with clarity and sound judgement. Leadership continuity and capability development remain key priorities, supporting organisational stability while enabling effective execution of our strategic goals.
Looking ahead, we recognise that long-term relevance is shaped not only by asset composition, but also by governance quality, execution readiness and organisational capability. The progress we have made, operationally and institutionally, would not be possible without the dedication of our people. It is this commitment that continues to fortify Malakoff's ability to respond to challenges, adapt to new realities and move ahead purposefully.
Governance in Focus
Consistent with our long-standing commitment to integrity and ethical governance, the Group continues to uphold a robust Anti-Bribery and Anti-Corruption (ABAC) framework, guided by our ABAC Policy and rigorously implemented across the organisation. This framework reflects Malakoff's unequivocal zero-tolerance stance on bribery and corruption and reaffirms our adherence to Section 17A of the Malaysian Anti-Corruption Commission Act (Amendment) 2018 [A1567], which sets stringent expectations for corporate accountability.
T.R.U.S.T. Principles
In line with the national agenda, we have adopted the Government-issued Guidelines on Adequate Procedures, developed by the Prime Minister's Department and structured around the T.R.U.S.T. Principles:
Top-Level Commitment
Risk Assessment
Undertake Control Measures
Systematic Review
Training & Communication
Malakoff has fully embedded these Guidelines as a key pillar of our governance architecture. The Group has strengthened its internal control environment by integrating these Adequate Procedures across our ABAC policies, Corruption Risk Assessments, Internal Compliance Audits, Gift Policy and Whistleblowing Policy.
ABMS ISO 37001:2025
Our commitment is further reflected in the implementation of the Anti-Bribery Management System (ABMS) ISO 37001:2025, which establishes a systematic, organisation-wide approach to bribery prevention. The forthcoming external audit by SIRIM QAS International will deliver the level of independent validation befitting an organisation of Malakoff's scale and national importance, ensuring the credibility and robustness of our governance practices in line with global standards.
Throughout the year, we continued to conduct ABAC awareness and training programmes for employees, business associates and contractors. These initiatives, designed to embed a culture of vigilance, ethical conduct and personal responsibility across the organisation, remain fully aligned with the National Anti-Corruption Strategy (NACS) 2024–2028.
National Sustainability Reporting Framework (NSRF)
We have taken concrete steps to enhance the Group's sustainability governance in 2025 by adopting the NSRF. The framework designates the ISSB's IFRS S1 and IFRS S2 as the national baseline for corporate sustainability reporting. We have begun embedding IFRS S2 into our reporting processes, placing initial emphasis on financially relevant climate information with reference to the NSRF's climate-first, phased approach.
FTSE4Good Bursa Malaysia Index
The Group's ongoing commitment to ESG was recognised with Malakoff's inclusion in the FTSE4Good Bursa Malaysia Index in June 2025 — a first-time inclusion marking an important milestone. The Group's ESG score stood at 3.4 out of 5.0, a slight improvement compared to 3.3 in 2024, with an ESG grading band of 3 stars out of 4 stars by Bursa Malaysia.
Risk Oversight
The Group continued to monitor key operational, strategic and market risks, including cybersecurity, operational reliability, sustainability-related risks and resource price volatility. Regular updates supported timely responses and ensured business continuity. Strategic decisions will continue to be framed with an emphasis on accountability and long-term value preservation, with careful consideration of changing economic and industry cycles.
Impact with Purpose
The Group's Corporate Social Responsibility (CSR) initiatives remain the epicentre of our strategic priorities, reflecting our commitment to uplifting the communities that surround our operations. In 2025, we invested in programmes that benefited more than 5,000 individuals, with a strong emphasis on educational support, community enrichment and environmental stewardship.
Education & Youth
Through our long-standing "Jom Ke Sekolah" programme, underprivileged students were provided with essential school supplies. Educational and motivational camps for students from our adopted schools featured three-day programmes designed to build confidence and life skills. Support was also extended to students pursuing higher education in Mukim Serkat, Johor and Segari, Perak.
Community Well-Being
During Ramadan, we continued our "Share Our Love" programme, hosting children from selected welfare homes for iftar and providing donations and duit raya. We also contributed to mosques in Mukim Serkat, Segari and Prai, alongside zakat contributions to asnaf communities in Johor, Perak and Seberang Perai.
Environmental Stewardship
The sustainability-themed "Amazing Hunt" brought employees and stakeholders together to encourage recycling and upcycling. Beach cleanup and environmental education programmes were carried out with local stakeholders. Through the Malakoff Marine Conservation Programme, employees worked alongside the Johor State Fisheries Department on conservation activities.
Alam Flora continued to drive meaningful impact through its environmental initiatives, with a focus on community engagement, waste reduction and environmental awareness. One such effort was the "Jom Plogging: Saya Sayang Bumi" initiative, which brought together volunteers to take part in clean-up and tree-planting activities, contributing to the reduction of waste in public spaces while restoring greener, healthier environments.
These efforts were further supported by broader public awareness and educational efforts, including outreach through facilities such as Recovery Initiative Sustainable Eco-Facility (RISE) and Fasiliti Inovasi Kitar Semula (FIKS), aimed at encouraging more responsible waste management practices and reducing reliance on single-use plastics. Through these engagements, participants gained a better understanding of recycling processes and the role individuals can play in supporting a more sustainable environment.
More importantly, these efforts reflect a deliberate shift from awareness to action, where environmental responsibility is not only encouraged, but actively practiced and carried forward.
Managing Leadership Transition and Continuity
The Board records its appreciation to Anwar Syahrin Abdul Ajib for his leadership and service as Managing Director and GCEO, during which he guided Malakoff through a period of sustained structural change while preserving strategic focus and organisational stability. We also honour his memory following his passing in late February 2026. Anwar Syahrin was a respected industry leader and a valued member of our Group whose contributions to Malakoff leave a meaningful legacy. The Board extends its deepest sympathies to his family.
A Meaningful Legacy
Anwar Syahrin Abdul Ajib guided Malakoff through a period of sustained structural change while preserving strategic focus and organisational stability. His contributions to Malakoff leave a meaningful legacy. The Board extends its deepest sympathies to his family.
Welcome: Syahrunizam Samsudin, GCEO
Subsequent to the leadership transition in the third quarter of 2025, the Board welcomes Syahrunizam Samsudin as GCEO on 1 September 2025 and is confident in his ability to lead the Group forward. The transition reflects a deliberate and orderly approach to leadership succession, reinforcing continuity of purpose and long-term stability.
Acknowledgements
I would like to take a moment to acknowledge Tan Sri Che Khalib Mohamad Noh, who stepped down as Chairman on 1 March 2026 after nearly 13 years with Malakoff. His leadership, guidance and steady hand have shaped much of the organisation we know today. On behalf of the Board, I extend our heartfelt appreciation for his immense contribution and wish him every success in his future undertakings.
I look forward to working alongside my fellow Board Members, noting that your guidance counsel and sound judgement have been instrumental in enabling Malakoff to navigate a complex operating environment while remaining focused on long-term value and responsible growth.
As we conclude another chapter in our journey, the collective commitment, professionalism and resolve of those who stand with us in advancing the Group's aspirations is truly commendable. The year under review reinforced our belief that sustainable performance is the product of collaboration across the Group and our wider ecosystem, rather than the result of any single initiative.
The collective efforts of all employees, reflecting strong discipline and adaptability, have contributed to the Group's progress in operational reliability and strategic execution. Your expertise and continuous dedication play a vital role in shaping Malakoff's future amidst change. Syabas and keep up the good efforts.
I also wish to convey my gratitude to the Government of Malaysia, relevant ministries and regulatory authorities for their continued engagement and support, as well as the Governments, regulators and business partners in our overseas operations. Our appreciation extends equally to our customers, financiers, business associates and strategic partners globally, whose trust and collaboration remain vital to our ability to deliver consistent outcomes.
Beyond 50: Powering Malaysia — we continue to honour our national role while extending capabilities beyond domestic borders. As we move ahead, we remain committed to strengthening our leadership, exercising accountability and contributing meaningfully to the Energy and Environmental sectors, creating enduring value for all stakeholders we serve.