It was indeed a day to celebrate corporate governance when KLCCP Stapled Group was ranked Second in the Malaysian Institute of Corporate Governance’s (MICG) assessment of top 100 Public Listed Companies. The ranking was announced at the launching of the “Transparency in Corporate Reporting: Assessing Malaysia’s Top 100 Public Listed Companies” (TRAC Report) held on 6 November 2019 where the top 10 companies with the best scores in corporate reporting transparency were revealed.
This milestone achievement is a testament of our commitment in combatting corruption through strategic approaches such as conducting bribery risk assessments, implementing the recommended controls, training and communication on the Group’s policies and procedures and establishing an effective monitoring and reporting system.
The assessment survey was designed to establish the status of anti-corruption practices of Malaysia’s 100 largest listed companies by market capitalisation and based on information available in the public domain such as annual reports, websites and other publicly available sources. The top 100 companies were measured on their growth of the anti-corruption programme since 2017 and on their readiness for corporate liability when enforcement commences in June 2020. Based on the survey findings, the average state of development for the 100 companies is at the 54% mark, 24% higher compared to 2017.
The survey results highlighted that Malaysian companies are committed to legal compliance including anti-corruption laws, provide channels for whistle-blowing on anti-corruption concerns and allow for confidential and/or anonymous reporting which grants protection to the complainants. These companies also show commitment to the anti-bribery and corruption policy which applies to their employees and directors, however only 47 companies extend it through their supply chain.
Findings from the survey also indicated some areas of concern and the top on the list is 82% of the companies have yet to make a public commitment to conduct regular bribery risk assessments with the results reported to a Board level committee. Secondly is the unavailability of a published public policy on donations and sponsorships. Other concerns include no public commitment to issue regular communications, monitoring and allocation of responsibility of anti-corruption programme.
In respect to improvement, MICG recommended companies to identify the shortfalls in their anti-bribery procedures, to conduct bribery risk assessments at the earliest opportunity, perform gap analysis and risk assessments, implement mandatory training for new employees including directors and Senior Executive Management and to develop a reporting mechanism of potential corruptions incidents.
According to the MICG Report, the top 10 companies with the best scores are:
1. Malaysia Resources Corporation Berhad (MRCB)
2. KLCC Property Holdings Berhad and KLCC Real Estate Investment Trust
3. Malaysia Airports Holdings Berhad
4. AMMB Holdings Berhad
5. Unisem (M) Bhd
6. MISC Berhad
7. Sime Darby Berhad
8. PETRONAS Chemicals Group Berhad
9. PETRONAS Gas Berhad
10. PETRONAS Dagangan Berhad