MSM Malaysia Holdings Berhad Annual Report 2020

Monitoring Financial and Operational Review Financial and Operational Review is a mechanism adopted to measure MSM Group’s actual performance against its business plan, previous year’s performance and the annual budget. This review is undertaken on a regular basis by an Executive Committee comprising senior management of the MSM Group. The Group Chief Executive Officer, Group Chief Operating Officer and Chief Financial Officer present the MSM Group Quarterly Financial Information and the Operational Performance analysis to the Audit, Governance and Risk Committee prior to Board approval and subsequent release to Bursa Malaysia. Annual Business Plan and Budget Business Planning, which is coordinated and aligned to specific objectives, is essential to direct the activities and initiatives of each Subsidiary and Head Office towards meeting the Group’s short term and long-term objectives. With this view, the Group emphasises on a comprehensive annual budgeting process to ensure that the Group’s business plans are in line with the Board approved MSM Strategic Plan. Competency MSM views its employees as invaluable assets. The Group is committed to its employees and professional development at all levels. In achieving the next level of productivity, excellent service, and performance, MSM has developed SWIIT Values ( S for Sense of belonging, W for winning attitude, I for Integrity, I for Innovation and T for Teamwork) which bring meaningful purpose, practical strategies and goals together to make the organisation aspirations more credible and achievable. The Group has also developed several programmes, in sync with its continual improvement culture, to ensure adequate supply of skilled and knowledgeable workforce who are then groomed to take on leadership positions. This is a key focus towards strong, sustainable and balanced growth. The programmes are holistic in nature, aiming to enhance both professional and behavioural competencies by incorporating elements such as integrity, governance as well as the Group’s core values. INTERNAL AUDIT FUNCTION The Board acknowledges the importance of the internal audit function. The Internal Audit Function is to provide internal audit services to assist the Audit, Governance and Risk Committee (AGRC) and Board in reviewing the effectiveness, adequacy and integrity of the Group’s systems of internal control in managing risks. The audit assignments are conducted in accordance with the internal audit plan approved by the AGRC. REVIEW OF STATEMENT BY EXTERNAL AUDITORS The External Auditors have reviewed this Statement of Risk Management and Internal Control as per Paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements. Their limited assurance review was performed in accordance with Audit and Assurance Practice Guideline (“APPG”) 3 issues issued by Malaysian Institute of Accountants. AAPG3 does not require external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. STATEMENT BYTHE BOARD Based on the processes and measures undertaken by the Board and its Committees during the financial year and assurance provided by the Group Chief Executive Officer and Chief Financial Officer, the Board is of the view that the risk management framework and internal control system as described in this Statement is sound and effective to safeguard the shareholders’ investment and MSM Group’s assets. This Statement is made in accordance to the resolution of the Board dated 25 March 2021. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 119 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING