INTEGRITY AND GOVERNANCE

Generic Policy Statement

PELABURAN HARTANAH BERHAD GROUP (“PHB Group”) is committed to the prevention, deterrence and detection of fraud, bribery and all other corrupt business practices. It is the Group’s policy to conduct all of its business activities with honesty, integrity and the highest possible ethical standards and vigorously enforce its business practice, wherever it operates throughout the world, of not engaging in bribery or corruption.


Policy Statements

It is the Company’s Policy to ensure that all business activities are conducted in an honest and ethical manner. PHB group takes a zero-tolerance approach to bribery and corruption while maintaining its professional ways of doing business.


Anti-bribery and Corruption (ABC)

Directors and Employees are prohibited from accepting or soliciting, giving or offering any form of gratification as an inducement or reward to do or forbear any act in relation to any matter in which any business partners, friends or Families has an interest whether directly or indirectly.

Business partners such as Joint-venture companies, are also prohibited from offering and/or giving any form of gratification to PHB Group’s Directors and Employees, as an inducement or reward, to use PHB Group’s office or position when making any decision, or take any actions in relation to any matter in which the business partners, friends or families have an interest whether directly or indirectly. Likewise, Directors and Employees and other PHB’s stakeholders are also prohibited from offering and/or giving any form of gratification to the joint-venture Partners that is against this Policy.


Gift and Hospitality

This Policy does not prohibit any business hospitality that is given for purpose of improving the Company’s image, promoting the Company’s investment properties and product or establish friendly relations with third parties to achieve business objectives.

Having said of the above, all gifts and hospitalities:

  • a. Must always be approved at the appropriate level of PHB Group’s Management;
  • b. Value of the gifts or amount of the contribution must be within the budgeted amount as approved by the Board from time to time; and
  • c. Must not be exchanged directly or indirectly both within and outside of the work premises in the course of their official duties and business dealings which may influence in a decision-making process or put the Board of Directors, Management or employees in a position of conflict or appearance of such conflict or obligation, including:
    • i. accepting gifts in exchange of doing or promising to do anything relating to the business or affairs of PHB Group for potential or existing customers, vendors, agents, service providers, bidders, suppliers and any other individual or organization;

    • ii. accepting an offer of a gift of any size from any third parties which is in negotiation with, or is submitting a proposal with the Group; and

    • iii. giving promise to give or offer, any payment, gift, hospitality or advantage with the expectation or hope that a business advantage will be given or received or to reward a business advantage already given.


Hospitality, Entertainment and Sponsored Business Travel

Directors and Employees are strictly prohibited from providing or offering to provide entertainment with a view to improperly cause undue influence on any party in exchange for some future benefit or result. Any acts of this nature, whether provided directly or indirectly through an intermediary, may be construed as an act of bribery and contrary to the general values and principles of Code of Business Conduct and Ethics.(CoBE).

Factory Acceptance Test (FAT) Any travelling or participating to event related to contractual requirements such as Factory Acceptance Test (FAT) or business development related matters, must be in accordance to the specification and requirements of the contract and reports must be produced to the Management on the activities held during the course of traveling/ event. produced to the Management on the activities held during the course of traveling/ event.


Contribution related to Corporate Social Responsibility (CSR)

All local charities or provide sponsorship, for example, sports, community or cultural events must be justified, approved by the Group Managing Director and within the amount/ value that has been determined and approved by the Board.

The activities/ events have to be legal and ethical under the laws.

All documents pertaining to the donation, contribution and sponsorship must be recorded and such records must be made available for auditing purposes.


Providing and Accepting of Facilitation Payments

The Company prohibits making and accepting, facilitation payments or kickbacks of any kind. Facilitation payments refers to payments made to secure or expedite a routine action by an official. Any request for facilitation for a facilitation payment must be rejected and reported in accordance to the Whistleblowing Policy and Whistleblowing Reporting Procedures.


Conflict of Interest and potential abuse of position for personal gains

Business decisions and actions must not be motivated by personal interest, considerations or relationships. Relationships with prospective or existing business partners, customers, competitors or regulators must not affect the status of independence (for directors) and sound judgment on behalf of PHB Group.

Directors and Employees are expected to exercise basic common sense in avoiding any conflict of interest and to act in a manner consistent with this Policy. On occasions, however, the question of whether or not conflict of interest exists may be less clear and open to interpretation. Whenever such a case arises, consultation from the Integrity & Governance Unit (IGU) or, where appropriate PHB’s Board and Senior Management, must be sought.

Outside Business Appointments, Directorships/Undertakings

  • a. Employee must not accept employment in, or undertake work for, any other company, firm or organization unless in exceptional cases and only with written permission of the Group Managing Director and relevant documents must be maintained by Human Resources Department.
  • b. Any outside activity must be strictly separated from employment of PHB Group and should not harm the employee’s job performance.

Money Laundering

Money laundering occurs when the criminal origin or nature of money or assets is hidden in legitimate business dealings or when legitimate funds are used to support criminal activities, including financing terrorism.

PHB Group strongly objects to practices related to money laundering, including dealing in the proceeds of criminal activities.


Political Funding and Dealing with Government Official

A 'public or government official’ that includes, without limitation, candidates for public office, officials of any political party, and officials of state-owned enterprises other than PHB Group.

Directors and Employees are prohibited from paying for non-business travel and hospitality for any government official or his/her family/household members.

In addition, this Policy prohibits:

    a. any contribution, financial or in-kind to political parties, politicians and related institutions in any country;

    b. Payment or use of corporate assets, directly or indirectly to any person, business, political organization or public official is prohibited;

    c. Any political contribution on behalf of PHB Group, use any of PHB Group resources to assist a candidate or elected official in any campaign or coerce or direct another employee to vote a certain way; and

    d. Any attempt to offer any incentives to public officials in the hopes of influencing the decision of that individual.


Wilful Blindness

If Director(s) or Employee(s) wilfully ignores or turns a blind eye to any evidence of corruption or bribery, action will also be taken against them.

Every person, to this Policy is applicable to, is encouraged to raise their concerns about any bribery issue or suspicion of malpractice at the earliest possible stage. If he / she is unsure whether a particular act constitutes bribery or corruption or if he / she has any other queries, these should be raised in accordance with PHB Group’s Whistleblowing Policy.


Reporting Channel

The Board and Management is required to establish an effective, adequate and secured Whistleblowing Reporting Channels for directors, employees, vendors, business partners and external parties, including public to report any suspected fraud, corruption, criminal activity or unethical conduct/behaviour in the workplace without facing any adverse consequences such as retaliation.

Whistle-blower must be accorded with protection under the Policy. Such protection is accorded even if the investigation later reveals that the whistle-blower is mistaken as to the facts as well as the rules and procedures involved.


Record Keeping

Employees must ensure all expenses claims related to hospitality, gifts or expenses incurred to third parties are submitted in accordance with PHB Group’s expenses policy and specifically record the reason for the expenditure.

All accounts, invoices, memorandum, other documents and records relating to dealings with third parties should be maintained with strict accuracy and completeness. No accounts will be kept “off-book” to facilitate or conceal improper payments and effective monitoring and auditing mechanisms must be established accordingly.

Employees must follow all the procedures laid out in other policies (available in the respective intranet portal) which help in anti-bribery and corruption due diligence on suppliers, potential joint venture parties, clients and any other third and external parties.

Generic Policy Statement

PELABURAN HARTANAH BERHAD GROUP (“PHB Group”) is expected to uphold the highest standard of integrity as it is one of the components of the Company’s core values. PHB Group aspires to enhance its commitment to the corporate governance by fostering an environment where integrity and ethical behaviour is maintained and any legislations relating thereto are reflected accordingly.

In line with this commitment, the PHB Group has formulated this Whistleblowing Policy (this “Policy”) in accordance with the Whistleblower Protection Act 2010 to provide a structured reporting channel and guidance to all employees and external parties to report instances of unethical behavior, fraud, misconduct, bribery or violation of the PHB Group’s Policies, Guidelines and Procedures without fear of reprisals, victimisation, discrimination and/ or being disadvantaged, provided that the disclosure is made in good faith.


Definition and Applicability

Whistle-blowing is the act of combatting corruption and other wrongdoings by encouraging and facilitating disclosures of information that one reasonably believes to be evidence of illegal, immoral or illegitimate practices including but not limited to contravention of any laws or regulations such as, information that involves mismanagement, corruption, abuse of authority or conduct, or any other wrongdoing carried out by an individual or group of individuals within the organisation that is not in the public interest. Such an act by the said individual(s) may be punishable by any legislated law of Malaysia. For the purposes of this Policy, all such acts shall come to be known as improper conduct (as defined under the Whistleblower Protection Act 2010)


Who can disclose the Concerns:

Any of the following Person(s) can make a disclosure of Concerns.

a. Internal Whistle-blower

PHB employees, including employees on permanent, contract, temporary, assignment, or secondment basis, agents and consultants appointed by or working for PHB, direct or indirectly, who has concern of improper conduct by another employee/ director of the company; and

b. External Whistle-blower

Any external party or member of the public, individual or group of people or institution who has concern of the improper conduct committed by an employee/ director of PHB Group.


Reporting Procedures

This policy is intended to complement the normal channel of communication and reporting lines within PHB, as described in the Code of Business Ethics (“CoBE”).


What to disclose:

A disclosure on improper conduct (Concerns) may be made if the whistle-blower has reasonable believe that the alleged wrongdoers engaged, or is prepared to engage in conduct prohibited by PHB or applicable laws and regulations.

Improper conduct (Concerns) constitutes one or more the following wrongdoings by any person in the conduct of the Company’s affairs, as per the following list (this list is not exhaustive):

  • a. Any act of giving or receiving of any gratification or reward in the form of cash or in-kind value for performing a task in relation to his/ her job description as described under the Anti-Corruption Policy;
  • b. Forgery or alteration of company’s information and data;
  • c. Misappropriation or embezzlement of funds, securities, supplies, or other assets belongs to the company;
  • d. Giving, solicitating or accepting of a bribe or a favor in exchange for direct or indirect personal benefit as described under Anti-Corruption Policy;
  • e. Exchange of gifts directly or indirectly both within and outside of the work premises in the course of their official duties and business dealings which may influence in a decision-making process as described under Anti-Corruption Policy;
  • f. Giving, solicitating or accepting facilitation payment either directly or indirectly to expedite and facilitate performance by authorities as described under Anti- Corruption Policy;
  • g. Make or offer to make, any monetary or such other benefits in-kind, as a political contribution to political parties, political party officials or candidates for political office as described under Anti-Corruption Policy;
  • h. Impropriety in handling or reporting of money or financial transactions;
  • i. A third-party request that you provide employment or some advantage to a friend or relative;
  • j. Receiving an invoice from a third party that appears to be non-standard or customised;
  • k. A third-party request or requires the use of an agent, intermediary, consultant, distributor or supplier that is not typically used by or known to the Company;
  • l. Changing the criminal origin or nature of money or assets by hiding in legitimate business dealings and financial terrorism as described in Anti-Corruption Policy;
  • m. Profiteering as a result of insider trading/knowledge;
  • n. Failure to comply with the provisions of relevant laws and regulations where the wrongdoer knowingly disregards, or does not comply with such provisions;
  • o. Financial malpractice or account churning;
  • p. Breach/ violation of the PHB Group’s Policy, Guidelines and Procedures;
  • q. Abuse of power and position for personal gain; and
  • r. Any act that poses danger to the health, safety and lives of PHB Group’s employees and/ or the public or environment.

Concerns may occur in the course of the company’s business or affairs or at any workplace, i.e. any related workplace to the company’s business or affairs, for example, on the company’s premises, at an event organised by PHB, or during a conference attended by the company's employees in the course of their work. If a Person is unsure whether a particular act or omission constitutes a wrongdoing under this Policy, the Person is encouraged to seek advice from Integrity and Governance Unit (IGU) of Risk, Compliance and Integrity Management Department.


When to disclose:

A whistle-blower shall come forward with any information or document(s) that they, reasonably believes in and discloses a wrongdoing, which is likely to happen, is being committed or has been committed.

The whistle-blower needs to demonstrate that they have reasonable grounds for the concerns. However, the whistle-blower is not expected to first obtain substantial evidence of proof beyond reasonable doubt, or even be able to identify a particular person to which the disclosure relates, when making a disclosure.

If the whistle-blower knows as a matter of fact that there are reasonable grounds of suspicion that a wrongdoing is going to take place, such genuine concerns shall be raised at an early stage.