MSM Malaysia Holdings Berhad Annual Report 2019

Social Media Policy • Today, social media is more accessible than ever and these new ways of communication may expose MSM Group to possible ethical risks committed by staff in the course of engaging in social media activities. MSM Group implemented the Social Media Policy with the following objectives: • To set out the guidelines on the responsible and ethical usage of social media by all staff of the Group. • To set out the possible consequences of policy violation by staff. AUTHORITY & RESPONSIBILITY Organisation Structure We organise our business operations into four business entities namely MSM Prai Berhad, MSM Refinery Sugar (Johor) Sdn Bhd, MSM Perlis Sdn Bhd and MSM Logistics Sdn Bhd which are supported by corporate services/ all Departments at the Headquarters level. In achieving our strategic and business objectives, the Group has undergone several key changes and an effective organisational architecture has been designed which combines employees in functions and product structures, across the MSM Group. Group Discretionary Authority Limits (DAL) Group Discretionary Authority Limits (DAL) is a manual which sets out the authorisation limits for various levels of MSM’s Group Management and staff. This guide ensures accountability, segregation of duties and control over the Group’s financial commitments. The DAL manual is reviewed and updated periodically to align with business, operational and structural changes. The Board approved the revised DAL version 5.0 on 24 August 2018. Legal Authority Limit (LAL) This Legal Authority Limit and Signing Protocol (LAL) authorises MSM Group’s personnel with defined official responsibilities to approve the Legal Services within MSM Group. This is to ensure that all risks are effectively managed to protect MSM Group’s interest. The LAL is aligned with FGVH Group Legal’s practice of having its own policies and procedures, and MSM Legal Division being the custodian of all legal matters relating to agreements, litigation matters, appointment of legal firms and signing of legal documents. The Board has approved the revised Legal Authority Limit (LAL) version 2.0 on 21 August 2019. 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 is key 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 helps retain and motivate the best talents by ensuring employees’ engagement and drive towards high performance culture. COMPETENCY MSM Group has established a structured competency baseline to assess existing human capital development needs across various engagement levels. This is to ensure the Group’s key assets, namely its people, and their skills and abilities are competitive and remain so in the future. With the clarity of responsibilities and relationship between functions, collaboration across the Group is enhanced to move the Group towards operational efficiency. 97 CORPORATE GOVERNANCE 07