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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

INTRODUCTION

Bribery is a direct or an indirect offer to give or receive gratification or anything of value with the intention of corruptly influencing the decision making behaviour of someone to obtain or retain a commercial advantage, such as to award contract orders, continue existing business dealings, or to gain an improper advantage over business competitors. As per the Malaysian Anti-Corruption Commission Act 2009 (Act 694), Gratification is defined as:
  1. money, donation, gift, loan, fee, reward, valuable security, property or interest in property being property of any description whether movable or immovable, financial benefit, or any other similar advantage;
  2. any office, dignity, employment, contract of employment or services, and agreement to give employment or render services in any capacity;
  3. any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part;
  4. any valuable consideration of any kind, any discount, commission, rebate, bonus, deduction or percentage;
  5. any forbearance to demand any money or money’s worth or valuable thing;
  6. any other service or favour of any description, including protection from any penalty or disability incurred or apprehended or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted, and including the exercise or the forbearance from the exercise of any right or any official power or duty; and
  7. any offer, undertaking or promise, whether conditional or unconditional, of any gratification within the meaning of any of the preceding paragraphs (a) to (f);
A commercial organisation commits an offence if a person associated with the commercial organisation corruptly engages in such acts of receipt or provision of activities related to Bribery and Gratification on behalf of the commercial organisation.

Objectives of the Policy

Advanced Packaging Technology (M) Bhd (“APT”) is fully committed to comply with all applicable laws, regulations, and policies in the countries where it conducts business and will ensure that the Company’s businesses are conducted in a fair and ethical manner. These laws include but is not limited to the Malaysian Anti-Corruption Commission Act 2009 (Act 694). This Policy aims to ensure compliance with the anti-corruption laws in Malaysia, as well as other countries where the Company carries out its business.

This Policy applies to all Directors, Managers, and Employees of APT. This Policy’s general principles and restrictions are also applicable to suppliers, vendors, agents, distributors, consultants, and any other third parties acting on behalf of APT, regardless of citizenship or where they conduct business.

Policy Guidelines

In essence, all Directors, Managers, and Employees must not offer and / or accept any forms of bribe and they must not use intermediaries, such as agents, consultants, advisers, distributors or any other business partners to commit and facilitate acts of bribery.

APT does not differentiate bribery pertaining to public and private sector individuals – such acts will not be tolerated regardless of the status and position of the recipient.

APT recognises that it is customary for its employees, customers, suppliers and other business partners to occasionally exchange small gifts, hospitality and entertainment which are often promotional in nature for the Company’s business dealings. Therefore, all employees should exercise due care and ask themselves about the intention of such acts and if they can be perceived as having an illegitimate and undesired purpose that contravene this Policy. If in doubt, they must consult with their respective supervisors or Managers before proceeding.

Areas of Impact

Gifts, Hospitality and Entertainment
Gifts can be defined as benefits of any kind given to someone as a sign of appreciation or cultural recognition without expectation of receiving anything in return. The gifts received or given would have no strings attached to the gifts by the receiver. There should be no reciprocity involved. Hospitality is the friendly reception and treatment of guests. The hospitality should be modest and does not raise any conflict of interest. Entertainment includes any other activities, and can play an important role in strengthening working relationships amongst business partners. Accordingly, any APT Director, Officer, or Employee may accept or provide such business entertainment offered for legitimate business purposes, such as to build goodwill and enhance relationships with customers, suppliers or other parties. Accepting or providing entertainment should only be permitted if such entertainment is occasional, moderate, reasonably related to a legitimate business purpose, and is not given as an inducement or kickback to obtain or retain business.

Facilitation Payment
All Company’s Directors and employees are strictly prohibited from offering, giving, soliciting, requesting, accepting, and receiving any form of undue advantage which can be deemed as facilitation payment. If an employee does receive a request for, or offer, facilitation payment, he or she must raise the incident to an immediate supervisor or through the appropriate procedures as outlined in APT’s Policy on Whistle-blowing.

Donations & Sponsorships
The company allows charitable donations including sponsorships that are made only in good faith and complies with existing laws and regulations. All charitable donations can only be made with the approval of the Company’s Board of Directors. Personal donations without approval will not be eligible for reimbursement.

The Company does not endorse any donation or contribution to political parties. Such donations are to be made only in a personal capacity and will not be eligible for reimbursement by the Company.

Dealing with Third Parties
A Third Party is any person, including a legal entity, with whom the Company interacts with and that is not a subsidiary or associate entity with the Company.

The Company must only engage with Third Parties if there is a legitimate need for the services or goods that they provide, and as long as the services or goods are priced at a reasonable market value based on industry benchmarks and demand. Such terms of agreements and transactions with the Third Parties should be documented for recordkeeping.

Engagement of an agent to facilitate payments of bribes or alike on behalf of the Company is strictly prohibited.

Recruitment of Employees
The recruitment of an employee should undergo the processes and procedures set out by the Company’s guidelines to ensure that there is no perception of bribery, corruption and/or conflict of interest. These include the applicant requiring to meet the minimum criteria and screening process to ensure that selected individuals have the claimed qualifications, experience, and credit stature outlined in their application. The Company should be able to provide adequate reasoning for the individual’s successful employment in the Company.

Referrals or Recommendations
In the circumstance whereby APT works together with business partners to cross-sell services and products, APT will ensure they have adequate reasonings to provide any support letters or recommendations to external businesses. Such recommendations and terms of such arrangements shall be documented.

Money Laundering
Money laundering is a process of converting cash or property derived from criminal activities to give it a legitimate appearance. Terrorism financing is the act of providing financial support, funded from either legitimate or illegitimate sources, to terrorist or terrorist organisations to enable them to carry out terrorist acts or will benefit any terrorist organisation.

APT is fully committed to comply with the requirements under the Anti-Money Laundering, Anti-Terrorism Financing Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) that is governed by Bank Negara Malaysia. APT recognises the importance of combating money laundering and terrorist activities, and will therefore comply with international and domestic laws and establish appropriate procedures.

For further details, please refer to the Anti-Money Laundering and Counter Terrorism Financing Policy.

Responsibility of Employees

To Identify and Understand the Policy and Evaluate Corruption and Bribery Risk –
All Directors, Managers and Employees must understand this Policy, identify the inherent risks in such activities related to this Policy, and exercise discretion to evaluate the impact of this Policy on their responsibilities. They shall:

  • evaluate the corruption and bribery risks affecting their function and responsibilities;
  • take the necessary steps to ensure such risks is mitigated; and
  • handle the corruption or unethical concerns on hand in a proper manner should it arise such as reporting to the Senior Independent Director of APT via the procedures outlined in APT’s Policy on Whistle-blowing.

To Respond to the Identified Corruption Risk
Corruption risk must be assessed continuously within each business area. All Directors and Managers must establish appropriate risk reporting, establishment of mitigation plans, and put in place internal controls which can be monitored and analysed for improvement and further action.

To Act Honestly, Justly, and with Integrity
All forms of bribery are prohibited. APT must not provide, offer or accept bribes, kickbacks, corrupt payments, facilitation payments, or inappropriate gifts; to and from government officials or any other private sector individuals or entities. All APT’s Directors, Managers and Employees should exercise appropriate judgement to determine if such business dealings are made in the best interest of the Company, and without any conflicts of interest. In the event such conflicts of interest have been made unavoidable with APT’s Managers and Employees, they shall disclose such conflicts to the relevant Directors or supervisors.

This also applies to all directors, managers, employees, contractors, consultants and anyone acting on behalf of the Company when dealing with job applications, existing and prospective customers, suppliers, partners, and anyone else that would be involved during the course of their employment and business dealings with APT.

Such actions shall include but not be limited to:

  • Ensure terms and agreements with customers and suppliers are in the best interest of the Company and in accordance with the highest standards of ethical practices and conduct
  • Ensure all parties are treated fairly and justly across all business dealings
  • Document engagements with appropriate reasoning and explanation for the choices made

In respect of customary exchanges of small gifts, hospitality and entertainment (“items”), which involve suppliers, customers, and/ or business partners, such exchanges of these items should be reported and recorded for transparency purposes. These items should not be gifted directly to an individual but to the respective organisation (be that of APT or other companies).

To Notify Any Alleged Violations of the Policy
Any Director, Officer and Employee who knows/suspects of a potential violation of applicable laws or to this Policy is required to report their suspicions promptly in accordance with the Whistle Blowing Policy.

Anyone who reports a possible violation of applicable laws or this Policy will be protected from retaliation in any form, as per the Whistle Blowing Policy.

Employees and Managers must promptly report suspected violations of anti-bribery laws and this Policy through the appropriate channels and may do so anonymously. That said, Employees must exercise discretion and report such violations with adequate explanation and information that will aid in the investigation of such violations.

Implementation

Training
All Directors, Managers, and Employees must familiarise themselves with this Policy and participate in the anti-bribery training sessions that will be periodically held.

Documentation
Documents include accounts, invoices, correspondence, papers, CDs, tapes, memoranda, and any other document or transcribed information of any type.

  • APT must prepare and maintain books and records accurately and in reasonable manner. Such records must be supported by detailed documents that determined the source of revenues and the utilisation of the Company’s assets;
  • “Off-the-books” accounts and false or deceptive entries in the Company’s books are strictly prohibited. All financial transactions must be documented, regularly reviewed and properly accounted for in the books and records of the relevant entity;
  • All relevant financial controls and approval procedures must be followed, including terms and agreements made with suppliers, customers, business partners, and other agents or parties to ensure no conflicts of interest is present;
  • The retention and archive of the Company’s records must be consistent with the Company’s standards, taxation regulations, and other applicable laws and regulations;
  • No documentation shall be concealed, altered, destroyed or otherwise modified without proper approval.

All APT Directors, Managers, and Employees must comply with APT’s internal controls, principles of Financial Reporting, Document Retention, Management Systems, and Auditing to ensure that APT can demonstrate its compliance with anti-bribery laws and regulations.

Breach of this Policy
Failure to comply with the afore-mentioned laws could lead to criminal and civil penalties for APT and its Directors, Managers and Employees with the introduction of the Section 17A Corporate Liability Provision, namely being liable to a fine of not less than ten times the sum or value of the gratification which is the subject matter of the offence, where such gratification is capable of being valued or is of pecuniary nature, or one million ringgit, whichever is the higher, or to imprisonment for a term not exceeding twenty years or both. In addition, there may also be significant business disruptions and harm to APT’s reputation as a result of such failure to comply with the laws.

Breaches of this Policy by any Employee, Manager, or Director will not be tolerated and can lead to disciplinary and other actions up to and including termination of employment.