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Anti-Corruption

    HLMG (Hong Leong Manufacturing Group) Code of Conduct and Ethics for Company Employees state our insistence on honesty, integrity and fairness in all aspects of our business. The direct or indirect offer, payment, solicitation or acceptance of bribes is unacceptable.

    In line with the UN Global Compact Principle 10 (Businesses should work against corruption in all its forms, including extortion and bribery.), we have adopted MS ISO 37001:2016 as our Anti-Bribery and Corruption Management System to provide a strong framework to prevent our employees, directors, partners or persons who perform services for or on behalf of us from undertaking corrupt practices in relation to our business activities.

    Malaysian Pacific Industries’ Anti-Bribery and Corruption Policy outlines our commitment to conducting business ethically in compliance with all applicable anti-bribery and corruption laws of every country in which we operate. Reports of any concern or suspicion may be made to the Head of Internal Audit or Head of Human Resources.

    Our Whistleblowing Policy provides a structured channel for all employees to report any concern on any improper conduct or wrongful act committed within MPI. The Board has identified the Chairman of the BARMC (Board Audit & Risk Management Committee) to whom reports of any such concerns may be conveyed.

    ANTI-BRIBERY AND CORRUPTION MANAGEMENT SYSTEM (ABCMS)

    As part of our commitment to conducting business ethically in compliance with the MACC Act 2009 and all applicable anti-bribery and corruption laws of every country in which we operate, we establish, document, implement and maintain an Anti-Bribery and Corruption Management System (ABCMS) in accordance with the requirements and standards based on

    • The requirements and standards prescribed under the International Standards for the ISO 37001:2016 ABCMS issued by the International Organisation for Standardisation (ISO);
    • The requirements and standards prescribed under the Malaysian Standards for the MS ISO 37001:2016 ABCMS published by the Department of Standards Malaysia; and
    • The Guidelines on Adequate Procedures pursuant to Subsection (5) of Section 17A under the MACC Act 2009 issued by the Prime Minister’s Department.

    Our Anti-Bribery and Corruption Management System (ABCMS), certified by SIRIM, provides a strong framework to prevent our employees, directors, partners or persons who perform services for or on behalf of Malaysian Pacific Industries from undertaking corrupt practices in relation to our business activities.

    We regularly review and revise the procedures, controls and risk criteria to ensure they remain up-to-date with applicable laws, regulations and best practices. Our ABCMS reviews also take into account results from relevant internal audits, reviews and investigations.

    The Governing Body, the Top Management, the Compliance Committee and the Responsible Persons identified are responsible for the implementation of the ABCMS.

    Governing Body

    Governing Body has the ultimate responsibility and authority for MPI’s activities, governance and policies, and to which top management reports and by which top management is held accountable. MPI’s BARMC (Board of Audit and Risk Management) acts as a supervisory board that has general oversight responsibilities with regards to the  ABCMS (Anti-bribery & Corruption Management System).The Governing Body shall demonstrate leadership and commitment with respect to the ABCMS by

    • Approving the organization’s anti-bribery policy;
    • Ensuring that the organization’s strategy and Anti-Bribery and Corruption Policy are aligned;
    • At planned intervals, receiving and reviewing information about the content and operation of the organization’s ABCMS;
    • Requiring that adequate and appropriate resources needed for effective operation of the ABCMS are allocated and assigned;
    • Exercising reasonable oversight over the implementation of the organization’s ABCMS by top management and its effectiveness.

    Internal Audit Committee

    Our ABCMS Internal Audit Committee conducts internal audits on an annual basis at the very least, to determine & ensure effective implementation of ABCMS.

    Top Management (Integrity Committee)

    The Top Management has the overall responsibility for the implementation of and compliance with the ABCMS. The Top Management shall comprise Group Managing Director (GMD) and Chief Financial Officer (CFO). The Top Management shall demonstrate leadership and commitment with respect to the OC’s ABCMS by

    • Ensuring that the ABCMS, including policy and objectives, is established, implemented, maintained and reviewed to adequately address the organization’s bribery risks;
    • Ensuring the integration of the ABCMS requirements into the organization’s processes;
    • Deploying adequate and appropriate resources for the effective operation of the ABCMS;
    • Communicating internally and externally regarding the Anti-Bribery and Corruption Policy;
    • Communicating internally the importance of effective anti-bribery management and of conforming to the ABCMS requirements;
    • Ensuring that the ABCMS is appropriately designed to achieve its objectives;
    • Directing and supporting personnel to contribute to the effectiveness of the ABCMS;
    • Promoting an appropriate anti-bribery culture within the organization;
    • Promoting continual improvement;
    • Supporting other relevant management roles to demonstrate their leadership in preventing and detecting bribery as it applies to their areas of responsibility;
    • Encouraging the use of reporting procedures for suspected and actual bribery;
    • Ensuring that no personnel will suffer retaliation, discrimination or disciplinary action for reports made in good faith, or on the basis of a reasonable belief of violation or suspected violation of the organization’s anti-bribery policy, or for refusing to engage in bribery, even if such refusal can result in the organization losing business (except where the individual participated in the violation);
    • At planned intervals, reporting to the governing body (if any) on the content and operation of the ABCMS and of allegations of serious or systematic

    Compliance Committee

    The Compliance Committee shall undertake the following roles and responsibilities

    • Overseeing the design and implementation by the organization of the ABCMS
    • Providing advice and guidance to personnel on the ABCMS, and issues relating to bribery
    • Ensuring that the ABCMS conforms to the requirements of our ABCMS Manual
    • Reporting at planned intervals, and on ad hoc basis on the performance (on the adequacy and implementation) of the ABCMS (including the results of investigation and audit) to the governing body, top management or suitable committee of the governing body or top management.
    • Assessing on a continual basis whether the ABCMS is:
      • Adequate to manage effectively the bribery risks faced by the organization
      • Being effectively implemented

    Members of the Compliance Committee shall be appointed by the Top Management.

    Our Human Resources Department is responsible for providing adequate and appropriate anti-bribery and corruption training to all our employees. In conducting the training, we address and cover the following

    • An overview of ABCMS (including the Anti-Bribery and Corruption Policy) and the employees’ duty to comply with the same;
    • The actual and potential bribery and/or corruption risks and issues that are relevant to the organization and each department in the organization, and how to recognise such circumstances;
    • The circumstances in which bribery and/or corruption can occur in relation to the employee’s duties and how to recognise such circumstances;
    • The consequences and damage which can occur to the employees and the organization as a result of any bribery and/or corrupt activity;
    • How to respond to solicitations and/or bribe offers and the benefits of responding (e.g. so that necessary actions and measures can be taken to prevent or mitigate, as the case may be, such bribery and/or corrupt activity);
    • How the employees can help prevent and avoid bribery and/or corrupt activity;
    • The reporting procedures as set out in the Anti-Bribery and Corruption Policy and encourage good faith reporting by employees;
    • How the employees can contribute to the effectiveness of ABCMS; and
    • The benefits of an improved ABCMS.

    The anti-bribery and corruption training shall be included in the orientation program for all new employees. Additionally, the HR shall carry out regular and continuous training for all employees.

    We ensure that the language used for all awareness and training is suitable taking into consideration the language spoken and understood by the employees in respective departments. We ensure that all the communication material is available in relevant languages, including English, Bahasa, and. Chinese.

    To ensure that the ABCMS is effectively communicated, communications from leaders include messages about the commitments and the associated requirements. These are reinforced with targeted communication (internal & external) plan, to ensure that all stakeholders are frequently reminded of their obligations.

    As part of our sophisticated approach, we take action to ensure that our Anti-Bribery and Corruption Policy is communicated to all directors, employees, and business partners (customers, suppliers, vendors, contractors and consultants). We ensure to communicate to all our employees regarding ABCMS and Whistleblowing Policy. Additionally, in these communications to our employees, we cover anti-corruption comprehensively, including aspects such as

    • facts & descriptions about fraud, bribery and other corruption types
    • corrupt payment methods
    • detection of corruption, red flags, the fraud triangle
    • consequences of bribe and corruption
    • common fraud risk factors, prevention against fraud
    • MACC Act 2009, and other relevant Acts
    • MPI Code of Conduct & Ethics
    • Anti-Bribery and Corruption Management System (ABCMS)
    • Reporting channel

    Depending on the information to be communicated and the intended audience, as necessary and appropriate, various modes of communication are used such as employee orientation/induction/briefing, eLearning and eTests, e-mail circulars, departmental/management meetings, notice board, intranet, etc.

    We ensure clear communication to our key direct material suppliers and service providers regarding their mandatory compliance with the provision of our Supplier Code of Conduct and Ethics.

    Further, we ensure that ABCMS is effectively implemented and maintained through an annual audit conducted by our ABCMS Internal Audit Committee. The audit findings are communicated to Top Management and relevant heads of department. Also, subsequent investigation results are communicated to Top Management and Governing Body.

    We also ensure that the language used in all communications is suitable taking into consideration the language spoken and understood by the intended audience (directors, employees, and business partners). We ensure that all the communication material is in relevant languages, including English, Bahasa, and. Chinese.

    For bribery and corruption risks, we have adopted MS ISO 37001:2016 (Anti-Bribery Management Systems) and the Guidelines on Adequate Procedures pursuant to Subsection (5) of Section 17A under the Malaysian Anti-Corruption Commission (MACC) Act 2009 to prevent, detect and respond to bribery and corruption risks.

    All bribery and corruption related risks whenever identified shall be assessed in accordance with the Risk Management Policy of the Group (HLMG). The Risk Management Policy was developed by the Group (HLMG) for the identification, evaluation, management and reporting of risks to minimise and/or contain the likelihood and consequences of its occurrence, and where appropriate, to provide for restoration and recovery in the event of harmful and damaging incidents.

    Upon assessment of such risks, we shall set out the actions that can and will be taken by us to prevent or mitigate, as the case may be, the occurrence of such risks. The procedures and controls are designed to address a range of bribery and corruption related risks and to focus resources and attention in the areas of higher risk.

    As part of ABCMS, we take action to identify the list of all stakeholders (customer, supplier/vendor/contractor/consultant, regulator, employee, competitor, bankers, labour union, etc.) as well as the relevant/affected department(s) in the organization, to consider and assess the needs and expectations of each stakeholder, and to identify the potential bribery & corruption risks that may arise therefrom. We assess the likelihood and impact of such risks identified, using qualitative and also quantitative measures where applicable, to determine the risk level, i.e. “Severe”, “Major”, “Significant”, “Minor” or “Trivial”. This is then utilized to evaluate the severity of the risks and their treatment options to set priority of management’s attention and devise appropriate actions to avoid, share, retain or mitigate risks within reasonable timeframes, and record the details of risks and treatment plans in the risk registers and present to the BARMC quarterly to review the adequacy and effectiveness of the risk management measures.

    Due Diligence

    Particular areas of focus with third parties (business partners and suppliers) include continued strengthening of due diligence procedures. We take action to ensure that this due diligence addresses corruption by

    • Ensuring business dealings only with approved suppliers that pledge their compliance to Supplier Code of Conduct and Ethics by signing a Letter of Conformance, and comply with our Anti-Bribery and Corruption Policy along with all applicable anti-bribery and corruption laws and regulations
    • Including anti-bribery clauses in contracts and purchase orders

    As part of our due diligence process, all key direct material suppliers are required to complete the Self-Assessment Questionnaire (SAQ) on their own sites. The results of the SAQ identify high risk areas in labour, ethics, health, safety and environmental management systems, and potential gaps against the MPI Code of Conduct.