Corporate Governance | PETRONAS Chemicals Group Berhad (PCG)

Why It Matters

Employing good governance builds credibility and fosters trust amongst our stakeholders. It also provides us with useful insights that can help improve our risk management capabilities.

This is why PCG is committed to upholding an effective system of governance, integrity and compliance guided by best practices.

We acknowledge that the disclosures we make must be timely and transparent. We also recognise that any breaches could result in bad reputation, regulatory penalties, or even failure of our business in its entirety.

Our Approach

From a broader perspective, PCG adheres to Bursa Malaysia’s Main Market Listing Requirements (MMLR), the Securities Commission of Malaysia’s Malaysian Code on Corporate Governance (MCCG), as well as relevant guidelines in other countries we operate in.

Internally, we adhere to the PETRONAS Integrity Compliance Framework and PETRONAS Code of Conduct and Business Ethics (CoBE). Our Board of Directors also plays an integral role in setting the tone and right priorities to encourage an ethical and transparent corporate culture.

Our Value Creation

Corporate Governance Framework

Includes economic, environmental, social and governance (EESG) considerations.

Board Diversity and Competency

We ensure an appropriate mix of skills and experience among our board members, who are nine highly dedicated individuals from various nationalities and backgrounds, with notable careers and expertise in their respective fields.

Commitment to Integrity

We have an Integrity Focal Person (IFP) who focuses on integrity strengthening and governance-related matters. This role is aligned with PETRONAS Group Integrity, which was established to perform four core functions:
1. Complaint Management
2. Integrity Strengthening
3. Detection Verification
4. Governance

In 2023, we implemented the following initiatives:
1. We had all our directors sign the Integrity Pledge, while our employees were mandated to submit asset declarations.
2. We obtained the Anti Bribery Management Systems (ABMS) ISO37001:2016 certification for the PCG Corporate Office.
3. We adopted the Prime Minister’s Office (PMO) Guidelines on Adequate Procedures which are anchored on five T.R.U.S.T Principles:

T

Top-Level Commitment

R

Risk Assessment

U

Undertake Control Measures

S

Systematic Review, Monitoring, and Enforcement

T

Training and Communication

Policies and Guidelines

We continue implementing the following to uphold integrity and ethical practices:
1. PETRONAS CoBE
  Provides policy statements on the standards of behaviour and ethical conduct expected of employees of the Group and others performing work or services for or on behalf of the Group.
2. Anti-Bribery and Corruption Policy and Guidelines
  Deals with improper solicitation, bribery and other corrupt activities that may arise in business.
3. PETRONAS Whistleblowing Policy
  Offers an avenue for employees and other stakeholders to safely report misconduct within the Group.
4. Insider Trading
  Prohibits the Board and Principal Officers from trading securities based on knowledge acquired from their positions. Directors and Principal Officers are also reminded not to deal in the company’s shares when possessing price-sensitive information related to the Group.
5. PETRONAS Tenders and Contracts Administrative Manual
  A guide used to evaluate bidders’ proposals to ensure tendering activities are carried out based on technically acceptable and commercially attractive bids.
6. Corporate Disclosure Guide
  Describes the disclosures and conduct on the dissemination of information, based on Bursa Malaysia’s MMLR which promotes transparency and accountability in communicating and disseminating material information to the public.