Corporate Governance

Corporate Governance

Perbadanan PR1MA Malaysia (“PR1MA” or “the Corporation”) and its subsidiaries (“PR1MA Group”) have always practiced an effective corporate governance framework in managing its business activities and affairs. As a corporation, PR1MA is subjected to the laws of its formation which is Perumahan Rakyat 1Malaysia Act 2012 (Act 739) (“PR1MA Act 2012”).

PR1MA operates in a dynamic business environment where the risk management and internal control system must be responsive to be able to support PR1MA in achieving its strategic business objectives.

MEMBERS OF CORPORATION

The Members of Corporation (“MoC”) is collectively responsible for the proper stewardship of the Corporation’s business and general policy, achieving the Corporation’s mandate and its objective to provide and maintain affordable housing for middle-income households in urban, new urban, sub urban and other areas deemed strategic, whilst taking into account interests of other stakeholders.

The MoC is also responsible to ensure the Integrity Unit (“IU”) which was established on 1 June 2019 pursuant to the Arahan YAB Perdana Menteri No. 1 Tahun 2018, performs its predfined core functions and overseeing the IU performance through reporting.

The MoC is guided by the Members of Corporation Charter (the “MoC Charter”) which outlines the role, functions, composition, operation and processes of MoC and matters reserved for the MoC as well as matters that the MoC may delegate to its Committees and Management with the aim of streamlining and enhancing corporate governance practices to ensure transparency, accountability and integrity of the PR1MA Group.

The Charter is governed by the PR1MA Act 2012, incorporates provision of the Companies Act 2016 (“Companies Act”), the Malaysian Code on Corporate Governance 2017 (“MCCG”) and better practices of good governance promulgated in other authoritative requirements where necessary.

MoC Charter (link)

COMMITTEES

To ensure smooth operations, facilitate the decision-making process and at the same time ensure appropriate controls, the MoC is supported by two key committees, namely the Audit and Risk Management Committee (“ARMC”) and the Nomination and Remuneration Committee (“NRC”) which were established in accordance with the PR1MA Act 2012.

The Committees and their responsibilities are as follows:

  • Audit and Risk Management Committee (“ARMC”)

    The ARMC comprises of four (4) members and its primarily responsible to assist the MoC on matters related to audit, financial reporting, risk management and Integrity Unit:

    Terms of Reference (link)
Audit
Audit

The ARMC oversees the Corporation’s both internal and external audit report for PR1MA (Jabatan Audit Negara) and review the internal audit programme and processes, ensuring adoption of standards established by professional bodies or government agency practices and the results of the same and whether appropriate action is taken on the recommendations of the internal audit function.

Finance
Financial Reporting

The ARMC assists the MoC in fulfilling its responsibilities with regards to the Corporation’s half yearly and annual financial statement (consolidated) and adopted audited accounts (consolidated), bad debts, impairment and revaluation of assets and permanent diminution in value as well as any related party transaction and conflict of interest situation that may arise within the ambit of the MoC and Management integrity.

Integrityunit
Risk Management

The ARMC is responsible for assisting the MoC in overseeing the risk management framework. It supports the MoC in fulfilling its responsibility in identifying significant risk and ensuring implementation of appropriate systems to manage PR1MA’s overall risk exposure. The ARMC also reviews the outcome of the enterprise risk assessments and oversee all risk management initiatives and efforts in inculcating a robust risk practising culture in the Corporation.

Integrityunit
Integrity Unit (“IU”)

The ARMC oversees the implementation of the IU to achieve its objectives and issues of corruption, fraud, embezzlement, and unethical behaviour in the Corporation; and review the performance report by IU, integrity related policy and procedures and the Statistic Report of the Whistleblowing policy.

  • Nomination and Remuneration Committee (“NRC”)

    The NRC assists the MoC in fulfilling its responsibilities in matters relating to the selection and assessment of Members and its Committees, Member’s remuneration package framework, policy pertaining to employee’s remuneration and benefits schemes and corporate Key Performance Indicators (“KPIs”).

    Terms of Reference (link)

management

MANAGEMENT EXECUTIVE COMMITTEE (“MEC”)

The PR1MA Group has established a clear organisation structure that sets out the reporting line, roles and responsibilities, accountability, and authority from the MoC and Management to operational levels. At the operational level, Management has the responsibility to implement MoC approved frameworks, policies, and procedures.

The MEC has been provided with powers to manage the day-to-day operations of the PR1MA Group. These powers to execute transactions is defined and formalised in the PR1MA Group Limits of Authority (“GLOA”). The operations of the MEC is governed by its own Terms of Reference.

In relation to Jawatankuasa Anti Rasuah (“JAR”), the MEC assists the MoC in identifying issues, problems and improvement measures in Governance, Integrity and Anti-Corruption based on four terms of reference as follows:

  • Policies, Legislation and Regulations;

  • Work Systems and Procedures;

  • Governance and Integrity Enhancement; and

  • Detection, Compliance, Punitive and Recovery.

  Risk Management

PR1MA recognises that risks are an integral and unavoidable component of its business. These risks, which are characterised by threats and opportunities, are dynamic and ever present in PR1MA’s operating environments. The objectives and purpose of risk management framework is to be implemented and maintained by PR1MA, which will allow management to manage risks within defined risk parameters, risk tolerances and risk management standards. The ever evolving and uncertain nature creates the needs for PR1MA to manage risks in an informed and structured way.

PR1MA also accepts that embedding risk management within PR1MA’s operation is an integral part of good corporate governance as it provides insights, improves decision making and enhance outcomes. An embedded risk management process will also strengthen management accountability. PR1MA risk management adopts the ISO31000:2009 International standard: Risk management – Principles and guidelines as its main practice guide. This Standard provides the principle and generic guidelines on risk management and can be customized to suit PR1MA’s needs and relevant activities.

PR1MA Enterprise Risk Management (ERM) Risk Register is a document used as a risk management tool and to fulfil regulatory compliance acting as a repository for all risks identified and includes additional information about each risk, e.g. nature of the risk, reference and owner, mitigation measures.

Risk Management section under Governance, Risk and Compliance department monitors the ERM quarterly by series of detailed engagement sessions with all fourteen (14) Risk Champions from all divisions/departments within PR1MA on their ERM Risk Register. PR1MA high risks or very significant risks are reported to ARMC every quarterly.

On 29 January 2019, Malaysia’s 7th Prime Minister, Tun Dr Mahathir Mohamad, had launched the National Anti-Corruption Plan (NACP) 2019-2023 as one of the government’s initiatives in realizing the government’s manifesto towards a nation with integrity and free from corruption. The full details of NACP is elaborated in the Arahan YAB Perdana Menteri No.1 Tahun 2018 Siri 2 Tahun 2019 – National Anti-Corruption Plan 2019-2023.

PR1MA was advised by KPKT in September 2019 to action on Strategy 6 which focuses on Inculcating Good Governance in Corporate Identity. Strategy 6 falls under Strategic Objective 6.2 which emphasizes on Greater Corporate Entities Resilience against the Threat of Corruption.

The OACP is formulated with the aim of assisting and helping the organisation to develop its own corporate anti-corruption strategy plan. It outlines the problem statement, approaches and programme relevant to all aspects in improving the plan such as task implementation and service delivery. The plan also aims at allocating appropriate resources necessary for the fulfilment of the stated policy, specifying reasonable timeframe, drawing the path towards the achievements of the strategic objectives.

PR1MA OACP which was approved in May 2020 focuses on five (5) main strategies to be implemented which includes Development, Sales and Marketing, Finance, Procurement and Governance. This plan is being monitored and evaluated quarterly by Risk Management section to identify gaps in the implementation of certain initiatives and to adjust accordingly to achieve the desired outcome.

Copies of OACP booklet are available for viewing and can be requested from Risk Management section via [email protected].

Corruption Risk Management (CRM) is a management process that helps organisations to identify the risks of corruption, abuse of power and embezzlement. It offers a systemic risk management plan in establishing good governance which reduces the opportunity for corruption, abuse of power and embezzlement.

The objectives of CRM are as follows:-

  • To identify structural weaknesses that may facilitate corruption

  • To provide a framework for all staff to take part in identifying risk factors and treatments

  • To embed corruption prevention within a well-established governance framework

PR1MA CRM Plan was approved in September 2020 (based on SPRM template). This plan is being monitored and evaluated quarterly by series of detailed engagement sessions with all fourteen (14) Risk Champions from all divisions/departments within PR1MA.

CALL CENTRE

03-7628 9898    |    [email protected]
Operating Hours: Monday - Sunday (9am - 6pm)
(*excluding Selangor Public Holidays)
CALL CENTRE

03-7628 9898    |    [email protected]
Operating Hours: Monday - Sunday (9am - 6pm)
(*excluding Selangor Public Holidays)
CALL CENTRE
03-7628 9898    |    [email protected]
Operating Hours: Monday - Sunday (9am - 6pm)
(*excluding Selangor Public Holidays)
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