ANNUAL REPORT 2023 71 LOCAL PROCUREMENT AND SUPPLY CHAINS MYEG effectively has no direct ‘Supply Chain’ as it is a digital company that serves mainly as a channel connecting users with governments and ancillary services providers. Hence, as the products/services offered are not originated/ produced by the organisation since the Group mainly serves as the delivery/digitalisation channel, MYEG is not in the business of purchasing raw tangible inputs to be converted into tangible outputs. MYEG’s supply chain exposure is indirect and limited only as a technology provider that enables existing supply chains to function more efficiently. However, the Group still actively advocates for local procurement whenever feasible. Sourcing goods and services locally not only contributes to the growth of the domestic supplier base and, consequently, the national economy, but it also reduces the environmental footprint of MYEG’s business operations by minimising foreign import activities. Additionally, local procurement enhances response times for MYEG. As a technology provider, MYEG is also cognisant that it indirectly plays a role in existing supply chains of other goods and services since the Group provides the systems/solutions responsible for enhancing the efficiency of these supply chains. In this regard, the Group is committed to continuously deploying relevant cutting-edge innovations such as blockchain solutions that can help to further reduce bottle-necks and enhance productivity, efficiency, time and cost savings to all the supply chains where the Group’s technology is deployed, be it within government or commercial processes domestically in the countries where MYEG operates as well as for cross-border trade. Local procurement is defined as the acquisition of goods and services from Malaysia-based suppliers or vendors. FY2021 FY2022 FY2023 Proportion of Spending on Local Procurement (%) 99% 99% 99% Proportion of Suppliers Who Are Local (%) 99% 99% 99% MYEG’s aims to continue procuring locally, maintaining MYEG’s already very high rate of local procurement. REGULATORY COMPLIANCE It is an absolute priority for the Group to adhere to all prevailing laws and regulations in all the jurisdictions in which it operates. As an e-government services provider, compliance is a key area of relevance since MYEG plays an instrumental role in helping the government implement regulations by providing a channel for citizens and businesses to fulfill their obligations to the nation. This includes ensuring compliance at all times with the regulatory bodies (BNM, Bursa and more) and with the requirements of government agencies that are related with the concession services (JPJ, Immi and more). Thus, the Group adheres to all prevailing laws and regulations of the countries in which it operates such as the Companies Act 2016 in Malaysia. MYEG performs internal audits across the Group’s departments to assess their adequacy, control and compliance with its Policies and Procedure. In the event of any non-compliance discovered, either an internal auditor or an appointed third-party investigator will subsequently follow up on the identified noncompliance for investigation. In FY2023, MYEG was not fined or censured by regulatory authorities for any environmental non-compliance and social non-compliance. MYEG also did not incur fines, penalties or financial settlements related to corporate governance and anti-corruption non-compliance in FY2023. The number of complaints to regulatory bodies such as KPDNKK has reduced tremendously. For FY2023, 60 cases were received and all the escalated cases were resolved within a suitable time frame. SUSTAINABILITY GOVERNANCE (cont’d) SUSTAINABILITY STATEMENT
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