Introduction

This report documents Mulpha International Bhd's corporate social responsibility (CSR) governance and practices in four key areas:

• Environment
• Workplace
• Community
• Marketplace.

It outlines our philosophy and details progress on issues that affect the sustainability of our business and global communities, and describes the benefits of our practices, programs, and initiatives.

 ENVIRONMENT

 Mulpha makes a conscientious effort into putting a stamp of the green concept to all the development.

Leisure Farm Resort (LFR), the group flagship project in Gelang Patah, Johor, was involved in variety of environmentally and energy conservation effort throughout 2010. Leisure Farm also positioned itself as the sustainable resort residential development. The novel concept of green living is thanks to the company’s ardent adherent to sustainable development and principles.The 3G Homes (Green, Gated and Generation) refers to new generation of intelligent homes with built-in technologies developed in the best interest of the environment.

Leisure Farm master plan was developed around the characteristic and the natural beauty of the surrounding. The undulating terrain consisting of rainforests wetlands, streams, lakes, valleys and hills remains the distinguishing feature of the LFR, immaculately preserved for the present and future generation. Construction materials and fixtures in Leisure Farm have been selected for their environmental friendliness and recyclable qualities. This includes recyclable bricks and stone chippings.

Leisure Farm boasts around 380 acres of green spaces and constructions are done around this natural surrounding instead of over it. Green architectural design such as energy saving light fittings, inverter AC system, energy efficient hybrid hot water system, centralized rainwater harvesting system and water saving toilet fixture are incorporated to promote the eco-friendly nature of the development. The completed project, Bayou Water Village, integrate heat dissipating roof system to reduce dependency on artificial energy and low volatile organic compound (VOC) emulsion paint which is environmentally friendly. Special designated areas such as Canal Park, Kayu Manis Orchard and Mangrove wetlands ensure that the flora and fauna growth are maintained. Mulpha organises Earth Day annually. This annual event is conducted in conjunction with the Earth Day in April. Locals and residents of Leisure Farm show their commitment and appreciation towards the environment by involving in nature related activities such as tree planting along the canal front and throwing mudballs to clean up river and canal.

Mulpha Australia (MAL) is one of five inaugural patrons of the ZooX^TM Fund which was launched in February 2007 and will instigate scientific research projects aimed at protecting the Great Barrier Reef from the ravages of climate change, reportedly the most significant and immediate threat to the Reef.

WORKPLACE

 Mulpha strive to become the employee of choice for our current staff and future recruits. We are proud that we retain a high number of staff in the company even through the challenging period that we faced in 2010. Team building exercise was conducted as part of the company's training programme to foster working relationship between the staff. Specialised trainings are also conducted to enhance the skills and performance of our employees. The company also sent the employees for external trainings that are relevant and in line with our business to improve the knowledge and proficiency of our employees. Mulpha Recreation Club continues to be a focal point to improve relationship between staff of Mulpha. The Club encourages staff participation in sporting activity, family day events, and monthly gathering. These efforts improve the working environment of the company.

COMMUNITY

2010 marked the fifth year since Arts for Health programme was first initiated by Mulpha. The programme, incorporating different discipline of arts, targeted hospitalised children with disability. We consolidated the programme in 2010 to focus on three main hospitals, Hospital Selayang, Pusat Perubatan Universiti Kebangsaan Malaysia and Pusat Perubatan Universiti Malaya. We rationalise this approach to ensure that the program will reach our target group and give us ample time to prepare for each programme. Our effort received great enthusiasm from the children and hospital staffs alike as nearly 200 children participated throughout the year.

Mulpha's Arts for Health was again shortlisted for the PM-CSR award 2010 in the community and social welfare category. This is an award ceremony in recognition of the best CSR practises in eight respective categories. The event was again organised by the Ministry of Women, Family and Community Development. The event was graced by the presence of the Deputy Prime Minister, YAB Tan Sri Dato' Haji Muhyiddin Yassin.

Mulpha Australia actively supporting the Professor Harry Messel International Science School at the University of Sydney, an outstanding educational program designed to encourage Year 11 and 12 students from Australia and around the world to pursue careers in science, technology and engineering. Mulpha Leadership Award recognise students who not only excel academically, but also shown diplomacy, tact and empathy when dealing with people from different cultures and countries. MAL also supports the work of the FSHD Global Research Foundation. The FSHD Global Research Foundation is an Australian not-for-profit organisation dedicated to finding a treatment and cure for Facio-Scapulo-Humeral Dystrophy (FSHD).

MARKETPLACE

MIB constantly engaged with the shareholders through different communication channels. We consider our associates, investors, fund managers and analysts, customers, business partners and communities in which we operate, to be our primary stakeholders. We keep in touch these groups to ensure that we understand their concerns and are able to be transparent with them about our efforts and progress. Fund managers and investment analysts were kept up to date on the performance of the Group throughout the year.

The company also exercises good corporate governance and ethical procurement to promote exemplary corporate conduct.