Rep No: 19/911/ANB/D

Risk Recommendation Report

Participant:
INGRESS PRECISION SDN BHD

Location:
PT 2475-2476, Kawasan Perindustrian Nilai,
71807 Nilai, Negeri Sembilan.

Survey Date:
1st October 2019

By:
Anbarasu. S
Technical Services Department
Operations

Producer:
Transnational Insurance Brokers (M) Sdn Bhd

"This report has been prepared by STMAB Technical Service Department, to assist underwriters in their evaluation of the
risk. The material contained in this report is strictly confidential and based on the information that was made available and
considered reliable at the time of survey. STMAB shall not be liable or accept responsibility for any incidental, consequential or
special damages arising from the use of this report or the implementation of recommendations. The liability is limited to the
cover provided under any policies effected on the property or risk concerned"

For Office Use Only

Batch No. Cert No. HC Serial Quot. Serial
Acknowledgements

We wish to express our appreciation for the assistance extended by the site management
and staff throughout the visit and for the information provided.

Distribution

1 Abd Aziz b. Bohari Senior Manager – Non-Motor Underwriting, STMB

2 Abdul Halim Bin Mat Tahar Deputy Manager– Non-Motor Underwriting, STMAB
3 Abral Bin Abdul Karim Business Manager- Broking, STMKB

Kindly return back the attached softcopy of the “Risk Improvement Recommendations
Follow-up Form” as feedback to the recommendations listed in this report.

If you require any assistance regarding these recommendations, please contact us.
Otherwise, please reply within 60 days of receipt of this report regarding the action plan to
be taken by local management.

RISK IMPROVEMENT RECOMMENDATION PRIORITY LEVEL

Level Importance Definition Time Implementation

Priority 1 Critical Priority 1 shall be considered as a Immediate up to 3
strict recommendation in order to months *
minimize the risk of a probable
outbreak of a major fire and/or its
propagation lead to high harmful
consequences for the insured.
Priority 2 Important Priority 2 concern medium (frequency Immediate up to 6
or severity) hazards that must be months
reduced to limit the consequences of a
fire and/or its propagation.
Priority 3 Advisory Priority 3 is given to improve quality of Immediate up to 12
the fire hazards, but shall not refer to a months
medium or high risk level in frequency
or severity.

Rep No: 19/911/ANB/D

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 18-08-01 Infra-red thermography survey Priority : 3

Observation
It is commendable that the insured do conduct infra-red thermography scaning on its
electrical system but it is conducted every 2 years.

Effect
Thermo inspection is a non-contact temperature measurement technique which detects a
variety of potential electrical faults or a technique to identify electrical ‘hot spots’ without
interrupting production schedule. It was informed that the insured has an infra-red scanner
but it could not be established if there is any scheduled thermography inspection carried out
on the electrical distribution system for the entire manufacturig facility. Infrared
thermographic scanning should be conducted on all electrical distribution system on annual
basis.

Recommendation
It is recommended that infra-red thermography scanning is conducted on the entire electrical
distribution system on, at least, annual basis to identify electrical hot spots before it manifest
into an electrical problem.

Finding from 2019 survey (Completed)

Infra-red thermography has been conducted in 2018 and followed by another thermography
survey in 2019.

Rep No: 19/911/ANB/D

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18-08-02 Permitted Storage height Priority : 1

Observation
It was noted that warehouse building stores plastic materials stored in palletized steel
racking system which is stored to a height of about 20 feet high for steel racking and 12 feet
high for free standing.

Effect
The building is installed with Ordinary Hazard sprinkler system of OH III-15m designed under
LPC Rules. It is important that storage height of materials is limited to the allowable storage
within the sprinkler system design specification. Plastic good is category II goods as per the
LPC sprinkler design rules and the storage height permitted for category II goods by hazard
classification is limited to 2.6m for racking storage and 3.0m for free standing storage. The
sprinkler system may not be able to cope with the fuel load if the storage of materials is
higher than the permitted height.

Recommendation
It is recommended that the storage of plastic goods is reduced from 20 feet to 8.5 feet for
racking storage and from 12 feet to 10 feet for free standing storage.

Finding from 2019 survey (Completed)

The storage height was reduced on 18/10/2018. The storage height is well maintained within
the storage limit at the time of survey.

Rep No: 19/911/ANB/D

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18-08-03 Flammable material storage Priority : 1

Observation
Ketone, which is a flammable material, is used as part of the production and stored within
production area as depicted by photo below. It was noted that the material is stored in
wooden shelf and on pellet.

Effect
Flammable materials in liquid form will tend to flow from place to place in the event of
leakage. Secondary containment is a system to protect areas from spillage, overfill, or
leakage from storage tanks housing hazardous materials. Typically, secondary storage will
be a retention wall or drip tray with volume to hold all of the tank’s liquid capacity plus an
extra percentage to ensure proper containment.

Recommendation
It is recommended that storage of flammable material in production area is limited to only the
daily required amount.
It is further recommended that flammable liquids storage is provided with drip tray to contain
any spillage from spreading to other areas. The volume of the drip tray should be 110% of
the highest volume container stored at site. The containers should also be provided with
grounding to provide avenue to dissipate any static charge build up.

Finding from 2019 survey (Completed)

The flammable materials were removed from the production area on 30/11/2018.
Accordingly, there was no storage of these flammable materials in production area at the
time of survey.

Rep No: 19/911/ANB/D

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18-08-04 Flow test for sprinkler system Priority : 1

Observation
The premise is installed with sprinkler system and the system is pressurized by a set of
pumps. It was informed that there has not been any pump test conducted on the system of
late.

Effect
Fire pump performance test is conducted to measure the flow pressure and should be
conducted annually to ensure that the fire pumps remains adequate to provide the required
flow & pressure for the operations of the sprinkler system. The test result should be checked
against factory test data & previous test results and should be serviced/repaired if the result
is more than 10% lower than the expected results.

Recommendation
It is recommended that fire pump performance flow test is carried out at churn (0%), rated
(100%) & overflow (150%) flow should be conducted annually to ensure that the fire pumps
remains adequate.

Finding from 2019 survey (Completed)

Flow test was conducted on 23/07/2018. The reading indicated the pumps were in good
working condition.

Rep No: 19/911/ANB/D

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18-08-05 Hot work permit system Priority : 1

Observation
There is a Hot Works permit system established in the plant. It is commendable that the hot
work permit includes site preparation such as provision for Fire Extinguishers, Fire hose and
removal of combustible materials from a site. However, it was noted that there is no
provision in the permit for fire watch during hot work or after hot work completion.

Effect
Historically, there had been staggering losses originated from hot work operation. Hot work
operation generates heat which would smoulder for a period before developing into a fire;
typically longer than 30 minutes.

Recommendation
It is recommended that a fire watch procedure is extended to include during work and fire
watch monitoring after work completion is adopted into the hot work permit. After work
completion procedure can be carried out for, at least, one hour after work completion at 30
minutes interval before the hot work permit is closed.

Finding from 2019 survey (Completed)

The final inspection clause in Hot Work permit was included in 2018.

Rep No: 19/911/ANB/D

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18-08-06 Fire protection for compressor room Priority : 1

Observation
The compressors are an important utility for the entire process to provide compressed air to
the entire operation. It was noted that the all the compressors are in the same room and the
room is not provided with any fire protection system.

Effect
Compressor is an important part of the production process and certain production may have
to stop if the compressors are damaged. The compressors are also located in the same
room and in the event of fire, both compressors may experience fire or heat damaged as
there is no fire protection to automatically detect and extinguisher a fire.

Recommendation
It is recommended that the compressor room is provided with total flooding system such as
CO2, FM 200, Inergen etc.

Finding from 2019 survey (Not completed)

This recommendation has not been completed yet. In the meantime, the participant has pro-
actively identified alternate supplier for rental of the equipment, in the event the existing
compressors room experience fire and not able to provide the needed pressure.

18-08-07 Impairment procedure Priority : 1

Observation
It was informed that there is no fire impairment procedures being practiced for fire protection.

Effect
The Fire Protection Impairment Notification should be used to supervise all sprinkler control
valve closures and other fire protection system impairments whether planned or fortuitous.
This will ensure any impairment of the fire protection system is monitored and restored after
maintenance work. The impairment form will help ensure that proper impairment precautions
are taken. All safety procedures stated in the form should be satisfied prior to closing of
valves.

Recommendation
It is recommended that insured adopts a fire impairment procedure to ensure fire-fighting
system is managed properly during impairment. Attached sample of impairment form.

Finding from 2019 survey (Completed)

The adoption was started on 18/10/2018. The notification procedure will be utilized for any
impairment of the fire-fighting equipment.

Rep No: 19/911/ANB/D

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 18-08-08 Sign off for inspection check list Priority : 1

Observation
It is commendable that insured has a self-inspection program in the form of a checklist.
However, it was noted that the check list was not signed off by anyone.

Effect
Checklist based inspection program is considered a good practice of check on fire fighting
and housekeeping by empowering staff to conduct inspection but supervised by an
authorised person to ensure accountability of the implementation of the system.

Recommendation
It is recommended that the self-inspection check-list form is signed off by at least two
personal with one person being the person who conducts the inspection and another person
at supervisory role or someone from safety department.

Finding from 2019 survey (Completed)

The checklist form has been modified to include a sign off by an authorized person and this
has been included since 26/10/2018.

18-08-09 Earth resistant tests Priority : 1

Observation
Poor grounding could expose to risk of electric shock, instrumentation damage and not to
mention downtime. It was informed that this building does not experience any problem with
lightning. However, the condition of ground copper lining may deteriorate over time due
corrosive effects influenced by factors such as moisture, soil type and temperature which
may reduce the conductivity of the strip over time. It was informed that there is no record of
any earth resistant check conducted in the premise.

Effect
Malaysia Standard MS IEC 62305-3:2007 provides the requirements for maintenance
standards of a lightning protection system (LPS) for building protection and life safety. Under
para E.7.1 of the standard for Maintenance and inspection of LPS, it is stipulated that a total
inspection and test should be completed every 2 to 4 years.

Recommendation
It is recommended that earth resistance test is conducted to check the effectiveness of
grounding and connections. A test can also gauge the resistant value to determine the
conductivity of the copper strip.

Finding from 2019 survey (Partially completed)

It was indicated that this has been done but it was not clear the extent of areas that was
completed. We would like to request the earth resistance test report for our view.

Rep No: 19/911/ANB/D

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NEW RISK IMPROVEMENT RECOMMENDATION FOR 2019

19-10-01 Transformer oil analysis Priority : 1

Observation
Transformer oil is an insulation oil used in transformers and its insulation property is
essential for the wellbeing of a transformer. However, its condition deteriorates over time
and it is essential to test the oil periodically to ensure the insulation property of the oil in
good condition. It was informed that there is no record of any transformer oil test conducted
on the transformers.

Effect
The quality of transformer oil will affect its insulation and cooling properties. High unwanted
impurity content such as acid, water and other dissolved gases will accelerate the
deterioration of the insulating qualities of the oil and if left untreated will cause the
transformer to fail.

Recommendation
It is recommended that insulation oil analysis is carried out on the transformers including
dissolved gas analysis to gauge the current condition of the transformer.

19-10-02 Load testing of the fire fighting pumps Priority : 1

Observation
The fire-fighting pump set comprises of electric duty, jockey and standby pumps. The
presence of electric standby pump enhances the importance of the pumps to be linked to
generator set. It was informed that the generator is tested on monthly basis but there is no
load test conducted involving the fire pumps.

Effect
In the event of power failure, the whole fire-fighting pump system will be not be energized as
even the standby pump is driven by electric power. As such, it is important that the pumps
are load tested periodically to ensure the system can be energized during power failure.

Recommendation
It is recommended that load test is carried out on the fire-fighting pumps to ensure the
pumps can be energized by the generator.

Rep No: 19/911/ANB/D

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 19-10-03 Sprinkler water tank level indicator Priority : 1

Observation
The level indicator of the sprinkler water tank was observed to be not moving freely on the
scale. As such, the level indicated on the scale may not be the true level of water in the tank.

Effect
The sprinkler system is an important fire-fighting system that works automatically. However,
sufficient amount of water must be made available to ensure the system works to its design
requirement. There must be sufficient water for fire-fighting for a minimum of 60 minutes. A
stuck level indicator may not provide the actual water level in the tank which will affect the
fire-fighting efficiency of the system.

Recommendation
It is recommended that the indicator on the scale is repaired to ensure actual water available
for fire-fighting is correctly indicated by the scale.

Rep No: 19/911/ANB/D

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 19-10-04 Weight test for switch room CO2 cylinders. Priority : 2

Observation
The M&E rooms have CO2 total flooding system protection and the CO2 gas is stored in
pressurized cylinders which is then triggered to flood the protected room by double notch
detectors comprising heat and smoke detectors during emergency. The cylinders are
pressurized and there is a possibility of gas leakage over a period of time. However, it was
informed that there has not been any weight test carried out on the cylinders.

Effect
In order for a gaseous fire suppression system to be effective in suppressing a fire, the
system must be in good working order with sufficient volume of the extinguishing gas for the
duration of the required hold time. As such, having sufficient volume of gas in cylinder is
important to ensure the system works efficiently during emergency.

Recommendation
It is recommended that weight test of the CO2 cylinders is carried out to verify that proper
volume of gas is available in the cylinders.

Rep No: 19/911/ANB/D

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 RISK RECOMMENDATIONS FOLLOW-UP FORM
BORANG STATUS SARANAN PENAMBAHBAIKAN RISIKO
[A copy of the completed form should be returned to Technical Services Department,
Operations – General Takaful & Retakaful, Syarikat Takaful Malaysia Berhad,
Fax No: 03-2711 1942, soft copy provided upon request]
[Satu salinan yang lengkap diisi hendaklah dipulangkan ke Technical Services Department, Operations – General Takaful &
Retakaful, Syarikat Takaful Malaysia Berhad, No Fax 03-2711 1942, “softcopy” akan diberikan berdasarkan permintaan]

Participant/Peserta : INGRESS PRECISION SDN BHD

Date /Tarikh : 24th October 2019
Risk location/Lokasi : PT 2475-2476, Kawasan Perindustrian Nilai,
71807 Nilai, Negeri Sembilan.

Recommendation Status/Status Response/Comments Date of

No. Agreed/Partially Respon/Komen completion/Implementation
No. Saranan Agreed/Not agreed Tarikh siap/implementasi
(e.g. 09-10-01) Setuju/Setuju
Sebahagian/Tidak Setuju
18-08-01 Agreed Completed 2018
18-08-02 Agreed Completed 18/10/2018
18-08-03 Agreed Completed 30/11/2019
18-08-04 Agreed Completed 23/07/2018
18-08-05 Agreed Completed 2018
18-08-06 Agreed Not completed
18-08-07 Agreed Completed 18/10/2018
18-08-08 Agreed Completed 26/10/2018
18-08-09 Agreed Partially completed
19-10-01 New
19-10-02 New
19-10-03 New
19-10-04 New

Rep No: 19/911/ANB/D

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