Corporate Governance

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Corporate Governance

Integrity as Strong Foundation

Integrity is one of core values in SEDC. It identifies what SEDC stand for and defines the character. In fact, it is emphasised as the foundation of SEDC career and the Corporation is committed to upholding this value and to live by it.

Strong Governance System

Good corporate governance has enabled SEDC to weather the 1997 and 2008 financial crisis. The Corporation were only one of two SEDCs in the country that remained in the black during the 1997 financial crisis. Against this backdrop and global economic downturn, SEDC continued to post positive Profit Before tax (PBT) for the past years till today.

One of the earliest measures SEDC took was to strengthen the internal audit function – to enable it to play a more effective and meaningful role. This includes assurance about the integrity of our information systems, compliance and internal controls. Audits are regularly carried out to ensure mistakes are corrected and not repeated. Auditees are required to comply and take immediate affirmative or corrective actions. At the same time, SEDC also established a Board Audit Committee, whose membership includes officers from the State’s Internal Audit Department. SEDC Internal Auditor now reports directly to the Chairman and to the Board Audit Committee.

The Corporation initiated Risk Management with the establishment of a Risk Management Unit in September 2012, and at the same time established a Board Risk Committee to provide oversight over the Corporation’s risk management implementation.

The meetings are organised in an orderly manner through a calendarised system. This ensures that Board members know in advance the dates of SEDC Board meetings and schedule their time/work accordingly. This way not only minimise the chances of postponing the meetings for lack of a quorum, but also meet the number of meetings targeted to be held for the year. This policy is also extended to SEDC subsidiary companies.

Corporate Governance Structure

Integrity and Governance Gallery (IGG)

The Corporation has set-up the Integrity and Governance Gallery which was launched by the State Secretary, YB Tan Sri Datuk Amar Mohamad Morshidi Abdul Ghani on 30 July 2013. The gallery is located at 7th Floor, Menara SEDC with the main objectives to showcase our integrity efforts and sharing with others on our integrity journey.

img class="wp-image-382" src="http://sedc.com.my/wp-content/uploads/2022/11/IMG_3700.jpg" alt="" width="1000" height="667" /><Launching of Integrity and Governance Gallery by State Secretary, YB Tan Sri Datuk Amar Mohamad Morshidi Abdul Ghani 30 July 2013

Transparent and Open System

To enhance transparency and openness in its operation, SEDC has since 2007 adopted Transparency International's Integrity Pact and incorporated the same as part of its tender procedure and in the appointment of consultants. Tenderers are also required to sign a Declaration of Bona Fide Quotation/Tender in the approved format.

An added feature in its tender procurement process is the requirement for all those involved in the tender opening to sign a confidentiality or non-disclosure agreement. This is a distinct and unique feature of the SEDC tender procurement.

View Integrity Pact

Processes and procedures

As part of efforts to improve its delivery system, the Corporation has upgraded its ISO to 9001:2015 version. In addition, the Corporation had been certified MS ISO 37001:2016 Anti-Bribery Management Systems (ABMS) on 12 August 2022.


ISO 9001:2015 - Quality Management System




MS ISO 37001:2016 - Anti-Bribery Management Systems

SOWING MORE SEEDS

In January 2020, the Corporation had established the Integrity and Risk Management Unit (IRMU) following the handing over of Risk Management Unit (RMU) from Legal Affairs Division. Initially, Integrity Unit (UI) was formed on 1 August 2019 under the purview of Human Resource and Administration Division.

The Corporation had initiated the establishment of Corruption Risk Management (CRM) Plan and Organisational Anti-Corruption Plan (OACP-SEDC) in line with Pekeliling Integriti Negeri Bil. 1/2020 Pelan Anti-rasuah Organisasi

Workshop On Corruption Risk Managemnet (CRM) Plan
22-23 January 2020

Workshop On Organisational Anti-Corruption Plan (OACP-SEDC) 9-11 September 2020

Soft Launching of OACP-SEDC - 17 December 2020

In order to inculcate the culture of Integrity, the Corporation had initiated:

Anti-Bribery and Corruption Policy (ABC Policy)
SEDC Code of Business Ethics (SCOBE)
Whistleblowing Policy and Channels
Integrity Enhancement programmes e.g. integrity day, campaigns, talks, seminars, posters and buntings


Integrity-related Posters


Complaint Management Systems (CMS)

To strengthen our governance, the Corporation had embarked on MS ISO 37001:2016 Anti-Bribery Management Systems in October 2021 and was successfully certified on 12 August 2022.


Phase 1: Gap Analysis - 25-26 October 2021


Phase 2: Clause Interpretation - 8-9 November 2021


Phase 3: Systems Design - Corruption Risk Assessment (CRA) Workshop - 24-26 November 2021


Phase 4: Systems Implementation – Documentation Review and Finalisation - 19 January 2022


Phase 5: Internal Audit Training & Management Review - 8-31 March 2022


Stage 1 & Stage 2 Audit by Sirim Qas International Sdn Bhd - June – July 2022

In November 2022, the Corporation had organised Integrity day with a new theme “Integrity, Pillar of Excellence” (Integriti Tonggak Kecemerlangan) in conjuction with SEDC 50th Anniversary which was officiated by YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg, Premier of Sarawak. Amongst the activities were as follows:

Integrity talk by Tan Sri Abu Kassim Mohamed and Encik Firdaus Ramlan.
Exhibition by relevant agencies and SEDC Entreprenuers.
Pledge taking by Group Leadership team and SEDC staff.

In February 2023, the Corporation had reviewed its OACP-SEDC and established the Mid-Term Review of OACP-SEDC.

As part of continuous learning, Integrity and Risk Management Unit (IRMU) officers had visited various agencies in March 2023 i.e. UDA Holdings, DBKL, Majlis Perbandaran Sepang, FGV Holdings, MACC and Padiberas National Berhad to study on their integrity initiatives and risk management.