MSM Malaysia Holdings Berhad Annual Report 2020

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Job Description Each role in the organisation structure is supported by clear description of job responsibilities which are linked to the vision and goals of the Group. A well developed and effective job description has been designed for clarity of responsibilities and relationship between functions which will enhance collaboration across the Group moving towards operational efficiency besides supporting the succession planning. It can retain and motivate the best talents by ensuring that employee’s engagement and helps drive high performance culture. Policies and Procedures The process of development and revision of policies and procedures in MSM is governed by the MSM Governance of Policies and Procedures Policy to ensure documents are thoroughly reviewed by the relevant stakeholders, in compliance with the Malaysian laws and regulations and appropriately approved by the authorised authority. The monitoring mechanism is also embedded in the Governance of Policies and Procedures Policy to ensure the documents are still relevant and reflect the current business environment. Policies Policies are designed to manage risks and ensure compliance to related requirements of the Group’s operations and aligned to the FGV Holdings Berhad’s requirement. New policies are formulated as business needs or risks arise and to uphold proper governance of MSM Group. The following are the new and revised policies that were endorsed by BGRMC and approved by the Board in 2020: Policy Owner Title Date Approved Strategy Investment Policy 31 March 2020 Finance Financial Closing & Reporting Requirement Policy 31 March 2020 Property, Plant & Equipment Policy 31 March 2020 Anti-Bribery Policy Statement MSM is committed to encourage transparent and good ethical conduct and upholding good image of integrity, transparency and accountability in all aspects of its business. The Anti-Bribery Policy Statement has been approved on 15 June 2020 (revised on 05 March 2021) and been uploaded in the web (http://www.msmsugar.com/our-company/corporate-governance) Whistleblowing Policy MSM Group also adopted a whistle blowing policy (leveraging on FGV Whistleblowing Policy), providing an avenue for employees and external parties to report actual or suspected malpractice, misconduct or violations of the Group’s policies and regulations in a safe and confidential manner. External Gift Entertainment and Hospitality Policy MSM Group recognises that the giving and accepting of gifts, entertainment and hospitality can be part of building normal business relationships. The aim of the Policy is to ensure that the highest standards of integrity are maintained and that it can never be suggested that there was an improper motive behind the offer or acceptance of the gift, entertainment and hospitality will unduly influence the recipient. The policy was approved by the Board. Authority and Responsibility Organisation Structure The Group has a comprehensive organisational structure which organises its business operations. The organisational structure provides clear lines of reporting, authority and segregation of duties, which promotes ownership, accountability, and delegated authority. Limits of Authority (LOA) A documented Limits of Authority (LOA) with clear lines of accountability and responsibility serves as a tool of reference to identify the appropriate approving authority at various levels of management including matters that require the Board’s approval. The new LOA of MSM Group was approved and subsequently implemented effective 23 rd November 2020. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 118 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT