MSM Malaysia Holdings Berhad Annual Report 2020

Audit, Governance and Risk Committee’s (“AGRC” or ”the Committee”) principal role is to assist the Board in carrying out its oversight responsibilities in relation to financial reporting, external audit and internal audit processes, conflict of interest and related party transaction. The AGRC also plays a crucial role in ensuring appropriate challenges and governance in matters relating to internal control, financial reporting as well as governance, risk management and ethics programmes of the Group. OVERVIEW The AGRC was established on 10 June 2020 through a merger of the Audit Committee (“AC”) and Board Governance & Risk Management Committee (“BGRMC”). The merging of the AC and BGRMC was based on the following rationale and advantages: a) To provide consolidation of audit, governance and risk matters in a single committee that will ensure: • Internal audits are focused on high risk matters; • Governance improvements are undertaken on gaps identified by internal audit through initiatives to inculcate good working culture using the right processes and systems; • Risk assessment takes into account or are reviewed based on the internal audit observations; and • Mitigation of risks are validated from the internal audit observations to provide assessment of effectiveness of the mitigation. b) The combined committee will be able to remove redundancies of both internal audit and risk management reporting on matters of the past by providing guidance for risk management to apply past data to anticipate risks for MSM. c) AGRC will be the platform to bring internal audit observations and governance initiatives together for MSM to move forward more efficiently and effectively in key risk areas. This report also covers the activities of the AC during the year prior to merger of the Committees on 10 June 2020. COMPOSITION OF AGRC The membership and meeting attendance of the AC and AGRC members for 2020 are as follows: Members Type of membership No. of meetings attended during 2020 AC AGRC Held Attended Held Attended Choy Khai Choon (appointed as Chairman w.e.f. 10 June 2020) Chairman/Independent Non-Executive Director - - 3 3 Dato’ Rosini Abd Samad (re-designated as Member w.e.f. 10 June 2020) Member/Independent Non-Executive Director 3 3 3 3 Dato’ Muthanna Abdullah (appointed as Member w.e.f. 10 June 2020) Member/Independent Non-Executive Director - - 3 3 Datuk LimThean Shiang (appointed as Member w.e.f. 10 June 2020) Member/Independent Non-Executive Director 3 3 3 3 AUDIT, GOVERNANCE AND RISK COMMITTEE REPORT MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 92 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT