Chemical Company of Malaysia Berhad Annual Report 2019

| CORPORATE GOVERNANCE | OVERVIEW STATEMENT This Corporate Governance Overview Statement outlines Chemical Company of Malaysia Berhad (“CCM” or the “Company”) and its subsidiaries’ (collectively referred to as the Group) approach towards corporate governance, its key focus areas and future priorities. The Group recognises the importance of having instructive corporate governance disclosures which will allow stakeholders to appreciate the direction that the Group is heading towards and how the outcomes of good corporate governance will be delivered. This Corporate Governance Overview Statement is augmented with a Corporate Governance Report, which provides detailed disclosures on the application of each Practice as codified in the Malaysian Code on Corporate Governance (“MCCG”). The Corporate Governance Report is available on the Company’s website which can be accessed at www.ccmberhad.com/investor-relations.php as well as via the announcement made on the website of Bursa Malaysia Berhad. The Corporate Governance Overview Statement and Corporate Governance Report are made pursuant to paragraph 15.25 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“MMLR”) and are narrated with reference to the guidance provided in Practice Note 9 of MMLR and the Corporate Governance Guide (3rd Edition) issued by Bursa Malaysia Berhad. The Corporate Governance Overview Statement should also be read alongside other statements in this Annual Report (e.g. Statement on Risk Management and Internal Controls, Reports on Board Committees and Sustainability Statement) for a holistic understanding of the Group’s corporate governance framework and practices. Corporate governance approach The Board recognises that the architecture and implementation of the governance framework is paramount for the effective development of strategy and business plan, the monitoring of Group’s performance and the management of risks. Whilst the circumstances of the Group may evolve over time, the Group’s overarching governance approach remains consistent and is anchored on the Group’s six core values of Passion, Excellence, Teamwork, Integrity, Responsible and Respect. The Group’s overall corporate governance approach is to: • Create a purpose and value driven corporate governance framework by promoting individual accountability; • Humanise governance through the mastery of intersection between rules, processes, ethics and morality; and • Drive the application of good governance practices in tandem with the value creation process of the Group. The Board regularly reviews the Group’s corporate governance policies and procedures to ensure they reflect the latest curation of thoughts, market dynamics and best practices whilst simultaneously addressing the needs of the Group. In performing its duties, the Board continuously encourages and promotes meaningful and thoughtful application of corporate governance practices in line with established benchmarks. Summary of corporate governance practices In seeking to actualise its corporate governance aspirations, CCM has benchmarked its practices against the relevant promulgations and best practices. For 2019, CCM has consistently applied all the Practices espoused by MCCG, save for: • Practice 6.2 (the establishment of a dedicated remuneration committee); • Practice 7.2 (the disclosure of top five Senior Management on named basis); • Practice 7.3 (Step-up) (the disclosure of detailed remuneration of each member of senior management on a named basis); • Practice 11.2 (the adoption of Integrated Reporting); and • Practice 12.3 (the use of technology to facilitate remote shareholders’ participation in general meetings). 68 CHEMICAL COMPANY OF MALAYSIA BERHAD