20th Dec 2021 – Progress Made In Discussion Between VS And Migrant Workers Rights Specialist, Andy Hall, With Regards to Worker’s Welfare

Bursa Malaysia at https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3219936.

● VS determined to address challenges identified from Recalibration Programme and existing migrant worker recruitment processes at the company.● VS commits that all migrant workers hired through Recalibration Programme shall be urgently placed under the Group’s direct employment.● The Group has been and continues to be firm on upholding its zero cost and ethical recruitment policy.● An independent third-party social compliance audit will be commissioned by March 2022 and the findings shared transparently by VS with Andy Hall as the basis for ongoing engagement on worker welfare

Johor Bahru, 20 December 2021 – The ongoing dialogue between Leading Electronics Manufacturing Services (“EMS”) provider in Malaysia, V.S. Industry Berhad’s (“VS” or the “Group”) (“威鋮集团”) and Migrant Worker Rights Specialist, Mr. Andy Hall, on the welfare of migrant workers at the company has continued constructively during the past weeks. Both parties have now agreed on a firm action plan and timeline going forward to address migrant worker challenges identified through this innovative dialogue. This two-way dialogue has primarily focused initially on migrant workers hired for work at VS through the Recalibration Programme (“Programme”). Several gaps have now been identified for improvement in this regard, and VS is determined to urgently address these challenges to protect the welfare of the migrant workers concerned.
All migrant workers hired under this Programme shall have their employment and immigration status urgently converted under the Group’s direct employment. In addition, VS will arrange to immediately house these workers in hostels that comply with the Workers’ Minimum Standards of Housing and Amenities Act, 1990 (No. 446).
VS commits to continue upholding its zero recruitment fee policy where all fees and costs relating to recruitment of migrant workers are borne entirely by VS. The Group will step up efforts to verify if there had been any instances of workers under the Programme having to pay recruitment fees or related costs to external party. If such instances exist, VS shall take immediate remedial action to reimburse the workers and this investigation and remediation work shall be verified in March 2022 by an independent social compliance audit, the findings of which VS shall share transparently with Andy Hall as the basis for our ongoing dialogue together. The specifics and nature of this third-party audit shall be finalized by VS shortly in liaison with Andy Hall so joint agreement to proceed can be established.
Managing Director of VS, Datuk S.Y. Gan (拿督颜森炎) said, “Following a series of discussions with Andy Hall, we can today outline a mutually agreedaction plan and timeline. We have immediately started working on implementing this action plan and endeavour to iron out these issues over the next few months. It will take a bit of time as the challenges identified in our management of some migrant workers at our company through the recalibration programme involves other parties as well. However, we are determined to uphold our commitment towards safeguarding the welfare of all employees, including our migrant workers.”
“Together with the constructive input from Andy Hall during the past weeks, I am confident our Group is moving in the right direction on these issues. Being a responsible corporate citizen, we place great importance on ESG (Environmental, Social, Governance) issues, as we understand that ultimately, a business with good ESG practices is one that will flourish and sustain over the long term.”
“In the spirit of accountability and transparency, the Group will commission an independent third-party social compliance audit by March 2022 and the findings of this audit will be shared transparently with Andy Hall as the basis for our ongoing and innovative engagement. Andy will be engaged and consulted on the format and specifics of commissioning this audit too. Moving forward, the leadership at VS has also committed to ensuring all future migrant workers shall be employed directly by the Group, with no involvement of third-party actors,” Datuk Gan further added.
Migrant Worker Rights Specialist, Mr. Andy Hall commented, “The senior leadership of VS has shown itself to be hands-on and has been involved in the discussion on issues of concern I have raised right from the beginning. I appreciate the sincerity and seriousness demonstrated by the management to resolve any issues arising pertaining to migrant workers’ rights and wellbeing at the company. I look forward to the continued and constructive cooperation between us into the future, as well as positive outcomes for migrant workers that can surely arise from the action plan laid out by VS being implemented in a timely and genuine manner.”
“I wish to reiterate that the primary emphasis of my work remains on protecting the rights and interests of migrant workers in Malaysia. In this regard, I am grateful for the openness of VS management to understand the concerns I have brought up and the willingness of the company to work together with me for the betterment of these workers. It is certainly not my objective to undermine or hinder development or progress aimed for by leading EMS corporates, such as VS. I hope that my efforts in this regard have brought about increased awareness on issues faced by migrant workers in Malaysia and in the EMS industry and that more organisations, whether locally or abroad, will pay more attention on this crucial and sensitive aspect as concerns ESG issues and migrant worker rights.”
About VSVS is one of the top 5 Electronics Manufacturing Services (EMS) corporations in ASEAN, as well as one of the top 50 EMS in the world, providing vertically integrated manufacturing solutions to multinational corporations across the globe. It has advanced manufacturing facilities in Malaysia, Indonesia and China. Backed by a team of highly skilled and innovative R&D personnel, VS also serves as an Original Design Manufacturer (ODM) in addition to being Original Equipment Manufacturer (OEM). Its comprehensive services include high-precision printed circuit board assembly, plastic injection moulding, sub- and full- assembly as well as tool design and fabrication.
Released on behalf of V.S. Industry Berhad by Capital Front Investor Relations. For media enquiries, kindly contact: Kai Khoo kai@capitalfront.biz012-335 7148

Andy Hall
Migrant Worker Rights Specialist
+977 (0) 9823486634 (Phone/WhatsApp)
Andyjhall1979@gmail.com (Email)
@atomicalandy (Twitter)

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