Statement from the Group Integrity Office of Tan Chong Motor Holdings Bhd Group (“TCMH Group”)

Dear Colleagues and Business Associates,

It’s been more than a year since the Board of Directors (“the Board”) of Tan Chong Motor Holdings Berhad Group of Companies (“TCMH Group” or “the Group”) had approved the Anti-Bribery and Anti-Corruption (“ABAC”) Policy on 19 May 2020 for implementation within the Group with the introduction on 1st June 2020 of the Corporate Liability offence under Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009.

The section not only imposes liability on companies but also accord strict personal liability on their officers and members of senior management. The provision also has extra-territorial reach as it covers locally incorporated companies and partnership, as well as companies and partnerships incorporated overseas with business presence in Malaysia.

Our business is built on concrete relationships of mutual respect and trust with our customers, joint venture partners, technical partners, suppliers and others. To maintain and build upon these relationships, we treat everyone with fairness, professionalism, honesty, integrity and adopting a culture of zero tolerance on bribery and corruption, in any form.

As a continuous commitment and effort by the Board in upholding high standards of governance and in combating any form of corruption within the organisation and to fulfil the corporate liability provision which requires all commercial organisations to take real measures to ensure their businesses do not participate in corrupt practices, the Group have revisited our Fraud Prevention Policy (FPP), the Special Complaint Policy (SCP) which is also our whistleblowing policy, and the reporting channels which were established and approved on 23 January 2013 to ensure they are updated to reflect the current requirements of the laws and regulations of the country and the strong position taken by the Group on “zero-tolerance” towards bribery and corruption, as well as other frauds and malpractices. At the same time the Group have introduced, “A Guide to a Better Understanding of our Anti-Bribery and Anti-Corruption (ABAC) Policy” in the link provided.

The Group will continue to improve its governance practices in response to the evolving best practices and the changing requirements of the statutory laws both within and outside the country.

Reminder!
The penalty for the corporate liability offence under Section 17A of the MACC Act 2009 is a fine of not less than ten times the sum of value of the gratification (bribe) or one million ringgit, whichever is the higher, or to imprisonment for a term not exceeding twenty years or to both.

If you know or are aware of any improper conduct (misconduct or criminal offence) committed or is about to be committed within the TCMH Group, report it to us by providing us the required information via the Reporting Channels provided. All complaints/information received shall be kept in the strictest confidence.

Below, the brief introduction of the:

Fraud Prevention Policy (“FPP”)

The FPP had been approved by the Board on 23 January 2013 for implementation prior to the introduction of the section 17A of the MACC Act 2009. In brief, it is intended to provide our personnel and other stakeholders with insights and information regarding initiatives undertaken to mitigate the risk of fraud, corruption and other irregularities; management actions to address all matters reported in respect of fraud, corruption and other irregularities; and reporting mechanisms to the management on all instances of fraud, corruption and other irregularities.

Special Complaint Policy (“SCP”)

Whereas the Special Complaint Policy (which is our term for ″Whistleblowing Policy″) establishes a procedure that allows any personnel and other stakeholders to report anonymously and confidentially on any questionable practices such as bribery, corruption, malpractices, frauds, abuse of power, conflict of interest, misconducts and/or internal control breakdown without fear of retaliation, provided the report is given in good faith and the complainant has reasonable grounds for believing the information disclosed to be true.

In implementing the ABAC, FPP, and SCP the following actions have been taken:

1 Establishment of the Governing Committees, namely the Special Cases Committee (SCC) and the Incident Control Committee (ICC)

2 Establishment of the Board Risk Management and Sustainability Committee (BRMSC)

3 Appointment of the Group Integrity Officer (GIO)

4 Setting up of Tan Chong Group’s Reporting Channel

5 Establishment of an in-house Investigation Department

Supplier’s Code of Conduct (“SCOC”)

To uphold the Group’s fundamental policy to conduct business in an ethical and sustainable way, the SCOC has been implemented together with the Group’s revised Procurement Policy on 1st October 2021. The SCOC is created for the purpose of ensuring that the Group’s appointed suppliers and their sub-contracted parties fully conform to all applicable regulatory requirements and adhere to existing environmental, social and corporate governance standards.

Should there be any doubt or question, please do not hesitate to seek further assistance or clarification at compliance@tanchonggroup.com.


Thank you.

Yours sincerely,

Group Integrity Officer
TAN CHONG MOTOR HOLDINGS BERHAD
24 May 2021