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Our Commitment
With a solid foundation in the distribution of F&B products in Peninsular Malaysia since 1982, our Group is now firmly focused on embarking on a comprehensive ESG journey. This commitment reflects our dedication to enhancing our environmental and social responsibilities, underpinned by robust standards of governance.
The Purpose of our company is seamlessly woven into the fabric of our core values, embodying integrity, inclusiveness, unity, and a drive for excellence. Our commitment to sustainability is a reflection of these values, guiding us to consistently exceed stakeholder expectations through the innovative use of technology and the continuous development of our team. This holistic approach to business ensures that our growth is not only robust but also positively influences both society and the environment. In fulfilling our purpose, we remain true to our core principles, driving sustainable progress that resonates with our values and vision.
Delivering Value
and Growth to Shareholders
As we navigate the complexities of the global market, our Group remains steadfast in its commitment to sustainability, not just in environmental terms, but also in ensuring sustainable sales and profitable growth for our shareholders. In the face of global supply chain challenges and inflationary pressures, we have achieved remarkable financial milestones, demonstrating our resilience and adaptability.
We are pleased to report that the Group’s revenue grew by approximately RM96.0 million or 11.5% from approximately RM835.9 million in 31 December 2022 to approximately RM931.9 million in 31 December 2023. This growth was achieved despite the challenges of the global supply chain, inflationary price impact and other disruptions. The increase in revenue was mainly due to the Group’s persistent effort to seek growth through expansion of distribution. In 2022 we secured new distribution rights to North Peninsular Malaysia from an existing supplier of dairy products and we also secured distribution rights to retail channels in East Peninsular Malaysia from an existing supplier of sauce, oil and condiments and dairy products, which have a full year impact in 2023.
The Group recorded a profit for the year of approximately RM27.1 million for the year ended 31 December 2023 compared to RM26.8 million in 31 December 2022. The Group recorded a profit for the year of approximately RM27.1 million for the year ended 31 December 2023, compared to RM 26.8 million in 31 December 2022.
As we look to the future, our focus remains on sustaining this growth trajectory, ensuring that we continue to provide robust returns to our shareholders. Our strategic approach to market expansion, combined with our commitment to operational excellence, positions us well to achieve sustained profitable growth. We are dedicated to enhancing shareholder value, underpinned by a deep understanding of market trends and consumer needs.
Product Responsibility
Our Group is steadfast in upholding high standards for the health and safety of our products and services. We have implemented essential food management and operational standards and are committed to continuously enhancing our processes, products, and services. Our goal is to consistently meet and surpass customer satisfaction, ensuring that every product we offer adheres to the highest quality benchmarks.
Customer Services
Our diverse customer base includes hypermarkets, supermarkets, provision shops, convenience stores, kiosks, school canteens, hotels, restaurants, cafes, F&B dealers, and various retail outlets like pharmacies, bakery ingredient shops, and pet shops. Our dedicated sales representatives and customer service personnel efficiently handle general inquiries, product returns, and complaints. Concerns regarding third-party products are directly addressed with the principal suppliers, ensuring transparency and accountability. For our own brand products, any customer issues are promptly directed to our sales representatives via email or phone for thorough investigation and resolution.
Quality Assurance
and Product Recall
We have established a robust food safety and quality assurance control policy, which is rigorously applied throughout our distribution chain. While most manufacturing of the products sold by our Group is external, except for certain frozen seafood or meat products that are cut or repacked by us or raw materials processed at our facilities in Puchong, we ensure that all products are delivered in compliance with relevant health and safety standards, licensing requirements, and quality assurance measures. This commitment to quality extends across our entire product range, ensuring that every item we distribute meets our stringent standards for safety and excellence.
Towards Sustainability
In our pursuit of sustainability, we’ve implemented significant energy reduction measures, notably installing solar panels at multiple key facilities. These installations, currently generating 771,878 kWh of solar energy, are pivotal in powering our operations and reducing our carbon footprint. This initiative is part of our broader plan to expand renewable energy use, with the goal of enhancing electricity savings and reducing environmental impact.
Our total energy consumption reflects our extensive operational scope, standing at 15,353,901 kWh, which includes 5,140,296 kWh from electricity and 10,203,605 kWh from fuel. This consumption represents a substantial part of our environmental footprint, motivating us to set precise energy efficiency targets. Our approach involves a deep analysis of our energy use, enabling us to develop and implement strategies aimed at reducing our energy intensity, which is currently 0.0165 per unit of revenue.
Water management is also a critical component of our environmental strategy. With a total water consumption of 27,677 m3, monitored through local providers, we are focused on enhancing water efficiency. Our efforts are directed towards not only tracking and optimizing water use but also establishing specific conservation targets, ensuring our operations align with our commitment to sustainable resource management.
Employee Development, Labour Standards,
and Supply Chain Management
The Group is dedicated to creating a nurturing environment for our employees, with a strong focus on career development and training. Although we don’t have a formalized policy in this area, we actively promote a culture of continuous learning and development, ensuring our team stays abreast of the latest industry practices. This commitment extends from comprehensive onboarding for new employees to ongoing skill enhancement for all staff members.
Regarding labour standards, we adhere strictly to Malaysian laws and regulations, particularly concerning child and forced labour. While specific policies in this area are in development, we are committed to upholding ethical labour practices and will proactively address any instances of non-compliance.
In terms of supply chain management, we maintain robust relationships with a diverse range of partners, including international and domestic brand owners and distributors. Our procurement strategy is rooted in transparency and efficiency, governed by a well-established Procurement Policy. This policy guides our selection and evaluation of suppliers, ensuring our supply chain practices are not only effective but also adhere to our high standards of ethics and integrity.
Upholding Ethical Standards
and Ensuring Efficiency
In the realm of governance, our Group is steadfast in its commitment to ethical, effective, and efficient management practices. Central to this commitment is our unwavering stance on Anti-bribery and Corruption (ABAC) compliance. We adhere to a zero-tolerance policy towards bribery, fully aligning with the Malaysian Anti- Corruption Commission (Amendment) Act 2018 across all regions of our operation in Malaysia. This reflects not only our legal compliance but also our dedication to upholding the highest ethical standards.
Our established Anti-fraud and Whistleblowing Policy sets clear parameters to prevent fraud, fostering a culture of good faith, ethical integrity, and professionalism. This policy is supported by an effective internal control system in our fraud risk evaluation process, ensuring that our operations are not only compliant but also transparent and accountable.
Additionally, we have instituted a comprehensive Code of Conduct applicable to all employees. This code serves as a behavioral compass, guiding our team to maintain high standards of integrity in all business operations. Complementing this is our Expenses and Payment Policy, which outlines clear procedures for claiming and reimbursing reasonable and authorized expenses incurred in the course of business activities.
Recognizing the critical role of whistleblowing in maintaining governance integrity, the Board has established a robust Anti-fraud and Whistleblowing Policy. We actively encourage our employees and related third parties who engage with the Group to voice any concerns about misconduct, malpractice, or irregularities confidentially. This open line of communication is pivotal in fostering an environment of trust and accountability. Concerns can be directed to scc.cares@sccsb.com.my, ensuring that issues are addressed promptly and appropriately.
Give Back
Throughout the reporting period, the Group actively engaged in community support and charitable initiatives. Our contributions were directed towards several key institutions, reflecting our commitment to making a positive impact in the community.
The Group provided RM3,000 to the Children’s Welfare Centre in Kuantan (Pusat Penjagaan Kanak-Kanak Tercentat Akal Kuantan), a facility dedicated to the care and development of children. Additionally, RM4,000 was donated to Sekolah Menengah Persendirian Chung Hwa (Chung Hwa High School) in Kuantan, supporting the school’s educational programs and activities.
In total, the Group’s contributions to these community and educational initiatives amounted to RM175,900 during the reporting period. These contributions underscore our dedication to supporting valuable community efforts and fostering positive change in the regions where we operate.
SCC GROUP OF COMPANIES
Headquaters
Lot 147-A, Kawasan Perindustrian Semambu,
25350 Kuantan, Pahang
+609 566 4766
customercare@sccsb.com.my