MISC Annual Report 2019

FADZILLAH KAMARUDDIN Vice President, Legal, Corporate Secretarial and Compliance Management Discussion & Analysis Anti-bribery anti-bribery trainings conducted in 2019 Compliance Champions trained ISO 37001:2016 Anti Bribery Management System Certification for MISC Berhad and MHB 4 17 See. Speak. Support programmes conducted in 2019 4 MISC's ISO 37001:2016 Anti-Bribery Management System Accreditation Award Ceremony Competition Law: Implications and Compliance Safeguarding Personal Data & Cybersecurity Risk Modern Slavery & Human Rights Commitment See. Speak. Support Programme More than participants across the Group through video conferences for international offices 600 Code of Conduct and Business Ethics (CoBE) Annual refresher training for employees through e-Learning CoBE training sessions conducted 5 employees trained on CoBE 162 A total of participants attended the session 66 Human Rights human rights assessment conducted and 1 in-progress A total of employees trained on human rights 165 1 Human Rights Commitment, Modern Slavery Policy and Statement launched in May 2019 Whistleblowing cases reported throughout the year 5 Third Party Engagement Session CoBE Training for Third Party Service Providers 1 A simple measure of a good leader is one who works with tireless honesty and integrity Ethics and integrity are integral to the conduct of MISC’s business and should be well embedded not just in our business operations but in the conduct of our people. We continuously strive to inculcate a culture of integrity in the company because it is everybody’s responsibility to practice good ethics in our day-to- day business. There is a need to consistently maintain the highest ethical standards, which is made more crucial as we expand our global presence. Deliverables and plans charted on a year-to-year basis since 2016 via the MISC Group Compliance and Ethics Programme towards 2020 have been progressively and successfully implemented. For the 2019 programme deliverables, these continued to be implemented through various awareness sessions, refresher training on MISC’s Code of Conduct and Business Ethics (CoBE), enhancements of whistleblowing processes and more comprehensive due diligence exercises. Deeper focus was given in 2019 to conducting bribery risk assessment and outlining the requisite mitigation plans for the high risk areas of our business operations. Attention was also given this year to providing awareness and training to third parties, particularly vendors. MISC’s communication campaign that was launched in 2017 titled ‘See.Speak.Support’ has also served to reinforce MISC’s zero tolerance for bribery and corruption, and has done well to encourage our people to speak up and report when they see any unethical behaviour. In 2019, I was encouraged to see better utilisation of our whistleblowing channels by our people hence demonstrating people’s courage to speak up and their trust in the system to make such reports. The commitment by our leaders and Board members through participation in the awareness sessions further demonstrated the tone from the top. For 2020, we hope to continue with the reinforcement such that the ethical culture is so well-entrenched it becomes a part of our day-to-day working lives. It would be wonderful to hear everyone sincerely say that we are not just building an ethical culture but that we have achieved it. In a major milestone in 2019, MISC has adopted the Human Rights Commitment as well as the Modern Slavery Policy and Statement. We recognise that the industry is operating in complex environments where social concerns are at the forefront. As a leading company in the global maritime industry, we want our stakeholders to know that we are committed to respecting internationally recognised human rights in all areas of our operations. As a result of our compliance and ethics programme, I am proud to say that MISC is now seen both in Malaysia and internationally as a leading company in ethics and good governance. Business ethics is a major component of MISC’s sustainability strategy and would serve our stakeholders’ interests well in the long term. To further drive the sustainability agenda at the topmost level of the company, I am delighted that the Board has now formal and regular oversight over MISC’s sustainability strategy. This demonstrates the Board’s commitment in driving MISC’s sustainability agenda. A key focus in 2020 will be on capability and competency enhancement on ethics and integrity, as the landscape and risk profiles will change as MISC enters new and less- familiar jurisdictions, and deals with new clients, partners and employees. Decisions should be premised on adequate due diligence, and having a risk-based approach. No matter where we are and who we deal with, ethics and integrity will not be compromised. Last but not least, I am proud to be a female in a leadership position in MISC, in an industry which is often seen as a male-dominated industry. The female workforce in MISC is large, however we need more of them in the decision-making and technical roles. I truly believe I got to where I am through merit and hard work, and not just because I am a female. This is what we should teach our daughters and our young female workforce. We should instil the belief in them that they can do any job as well as any male and as leaders, we can empower them to reach greater heights. FADZILLAH KAMARUDDIN Vice President, Legal, Corporate Secretarial and Compliance Operating Responsibly V I C E P R E S I D E N T ’ S R E M A R K S 153 152 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019