As a significant player in the local steel industry, we believe in building a sustainable and ethical supply chain that ensures the continuous supply of goods without interruption while upholding our Environment, Social, and Governance aspects. We have encouraged our supply chain to implement a responsible and sustainable approach to conducting their business.  Moreover, we continue to support the local market, where most of our suppliers are local, with 84.0% and only 16.0% being overseas suppliers.

In FY2022, we implemented the ESG assessment for all our suppliers and contractors as part of our supplier due diligence process. In addition, we are committed to reducing the environmental footprint in our steel manufacturing. Thus, we require all our suppliers and contractors to undergo a screening assessment before signing a contract with Masteel. This is to ensure that all our suppliers and contractors comply with Masteel’s requirements. The screening assessment involves five (5) criteria, as stated below.

A score of 0-4 is allocated for each criterion which is then totaled to obtain the overall score or rating. If a supplier scores lower than 12 points, we will notify the supplier of the rating outcome and request immediate corrective action. In the event of five consecutive scores of lower than 12 points, we will deregister the supplier from our Approved Supplier List unless a specific concession is given. We strictly ensure our Approved Supplier List consistently demonstrates a high quality of service and products. Moreover, when we are selecting new suppliers, those who had been deregistering from our list will be given lower priority.