ANTI-BRIBERY AND ANTI-CORRUPTIONPOLICY

Copyright: Selangor Dredging Berhad

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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

Revision 02
Effective Date
01 06 2023

Anti-Bribery and Anti-Corruption Policy

Document Ref. No
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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

Table of Contents
1.

Introduction ..................................................................................................................................... 4

2.

Definitions ....................................................................................................................................... 4

3.

Policy Statement ............................................................................................................................. 54.

Anti-Bribery and Anti-Corruption ..................................................................................................... 6

5.

Gifts ................................................................................................................................................. 66.

Hospitality and Entertainment ......................................................................................................... 7

7.

Dealing with Public Officials ............................................................................................................ 7

8.

Referrals .......................................................................................................................................... 8

9.

Facilitation Payments ...................................................................................................................... 8

10. Donations and Sponsorships .......................................................................................................... 8
11. Audit and Record Keeping .............................................................................................................. 8
12. Conflict of Interest ........................................................................................................................... 9
13. Non-Compliance ............................................................................................................................. 9

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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

1.

Introduction

1.1

This Anti-Bribery and Anti-Corruption Policy (“ABAC Policy” or “this Policy”) is developed aspart of Selangor Dredging Berhad’s (“SDB”) anti-bribery and anti-corruption program and isapplicable to SDB and its subsidiaries (“SDB Group”).

1.2

This Policy applies to both SDB Personnel and SDB Business Associates.

1.3

SDB does not condone bribery or corruption and expects all SDB Personnel and SDB Business
Associates to adhere to the same principles in representing SDB or in their business conductwith SDB.

1.4

For ease of reference, certain sections of this Policy are divided based on its applicability toSDB Personnel and SDB Business Associates respectively.

2.

Definitions
In this ABAC Policy, unless the context requires otherwise:“Board” or “Board member”

refers to the Board of Directors of SDB;

“bribery”

refers generally to when gratification isrequested, given, accepted, procured, directly or
through a third party, for the benefit, goodwill or
advantage of the recipient or another person,
whether
actualorperceived,
inacknowledgement of some influence over atransaction. It also refers to any bribery offence
prohibited under the Malaysian Anti-Corruption
Commission Act 2009 and the relevant antibribery laws in your jurisdiction;“corruption”

refers to the use of position of trust for dishonest
gain, through the act of soliciting, giving,accepting or receiving gratification, directly orindirectly, to or from a person in authority either
in the form of money, services or valuable goods
as an inducement or reward to do or not to do an
act in relation to the person’s principal affairs;“facilitation payments”

means payments made to secure or expedite theperformance by a person performing a routine oradministrative duty or function as a form ofgratification;“relative”

includes spouse(s), siblings, siblings of thespouse(s), children (including step-children andadopted children), parents, step-parents,siblings, step-siblings, maternal or paternal

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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

grandparents, grandchildren, in-laws, uncles,aunts, nieces, nephews or cousins;“gift” or “gifts”

include(s) cash, cash-equivalent gifts and noncash gifts including but not limited to corporate
gifts such as pens, plaques, photo frames tohampers, flowers, food etc;

“gratification”

may come in various forms including but notlimited to that of a donation, gift, loan, fee,
reward, valuable security, property, or interest inproperty of any description whether movable or
immovable, money or any other similaradvantage including an offer or promise of any ofthe preceding forms of gratification;“Public Official”

includes officers of the Government of Malaysia,
the Government of a State, local authority,
statutory authority, or anyone receiving
remuneration from public funds. An individual
does not cease to be a Public Official by simply
purporting to act in a private capacity;“referral”

means a fee or commission or some nonmonetary benefit offered to another party; and“SDB Business Associate” or “SDB
Business Associates

refer(s) to any individual or organisation that SDBGroup contracts with during the course of its
business, including actual and potential
customers, suppliers, distributors, businesscontacts,agents,advisors,consultants,subcontractors, joint venture partners, tenants
and service providers;“SDB Personnel”

refers to every director, member, nominee, fulltime employee, part time employee, contract
worker and intern of SDB Group; and“you”, “your” or “yourself”

means any person to whom this Policy applies.

3.

Policy Statement

3.1

SDB is committed to maintain the highest standards of ethics and integrity in the way we dobusiness. As such, SDB Personnel must never, directly or through intermediaries, offer orpromise improper financial or other advantage in order to obtain or retain a business or otheradvantage from a third party, including SDB Business Associates. Similarly, SDB Personnel
must not accept any such advantage in return for any preferential treatment of a third party. We
also expect SDB Business Associates to adopt the same approach. Your relationship with SDB
must reflect SDB’s ongoing commitment in doing business ethically and with integrity.

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ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

3.2

SDB recognises the compliance of all applicable laws and regulations, including the MalaysianAnti-Corruption Commission Act 2009 (“MACC Act”) and its amendments, and the Companies
Act 2016. To the extent you are governed by applicable laws and regulations which prescribe
stricter standards or conflict with the MACC Act or the Companies Act 2016, you must comply
with the stricter standards in the jurisdiction you are operating in.

4.

Anti-Bribery and Anti-Corruption General Principles

4.1

You must not participate in any corrupt activity such as seeking or accepting a bribe to do orforbear from doing something to SDB’s detriment. Similarly, you must not offer or pay a bribein return for a third party to do or forbear to do something improper, even if it is perceived to be
to SDB’s benefit or advantage. Further, you must not abuse your position in SDB for personal
gain.

4.2

Facilitation payments are similarly strictly prohibited as they are considered as bribes inMalaysia. In simple terms, facilitation payments are unofficial and improper payments made tosecure or expedite a routine administrative function.

4.3

When you are being asked to bribe or is offered a bribe, you must immediately report the matterto your Head of Department or your contact person in SDB, as the case may be.

4.4

If you are found to have committed an act of bribery, both you and SDB could be charged for acorrupt offence under the MACC Act. It is therefore important to avoid the perception of offering
or giving bribes, which are further elaborated below.

5.

Gifts
For SDB Personnel

5.1

SDB recognizes that corporate gifts (both giving and receiving) is a legitimate way of creating
goodwill, building strong business relationships and is common practice within its industry andbusiness environment.

5.2

SDB allows for appropriate gifting and receiving of corporate non-cash gifts which are not lavish
or excessive. Examples of cash equivalent gifts are coupons, vouchers, tokens that can beconverted into cash or credits that can be exchanged for items of similar value.

5.3

You must however, ensure the corporate gifts are given openly and not secretly. You must
further ensure the gifts are not given with an intention to illegally influence a third party to do orforbear from doing something to obtain or retain business for SDB.

5.4

If you receive cash, cash equivalent gifts or gifts that are expensive or lavish, you must returnthese gifts with a polite explanation note of the rules under this Policy. This is because cash,cash equivalent gifts or expensive or lavish gifts may be viewed as gifts capable of swaying
your professional judgment to act with integrity and in the best interest of SDB and could beperceived as bribes. Even if you do not think your professional judgment will be affected, youshould avoid the perception of offering or accepting a gift which may be seen as a bribe.

5.5

You must keep records of the gifts in accordance with SDB’s internal procedures.

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ANTI-BRIBERY AND ANTI-CORRUPTION POLICYFor SDB Business Associates
5.6

You must not offer gifts, whether directly or indirectly, with a view to improperly influence SDB
Personnel’s professional judgment or decisions. You must also not accept gifts from SDB
Personnel in order to do or forebear to do something improper for SDB’s benefit.

6.

Hospitality and Entertainment
For SDB Personnel

6.1

SDB recognizes that providing hospitality and entertainment is a legitimate way of creating
goodwill, building strong business relationships and is sometimes common practice within its
industry and business environment.

6.2

SDB allows for appropriate entertainment and hospitality which are not lavish or excessive.
Examples of cash equivalent entertainment and hospitality are coupons, vouchers, tokens thatcan be converted into cash or credits that can be exchanged for items of similar value.

6.3

You must however, ensure that all forms of hospitality and entertainment are given openly andnot secretly. You must further ensure the hospitality and entertainment are not given with anintention to illegally influence a third party to do or forbear from doing something to obtain or
retain business for SDB.

6.4

You must keep records and declare all such expenditure in accordance with SDB’s internal
procedures.

6.5

You must not accept any form of hospitality or entertainment you consider disproportionate.

6.6

You should be mindful that expensive or lavish hospitality or entertainment may be viewed as
hospitality or entertainment capable of swaying a person’s professional judgment to act withintegrity and in the best interest of his company and could hence, be perceived as bribes. Even
if you do not think your professional judgment or your counterparty’s professional judgment will
be affected, you should avoid the perception of offering or accepting a bribe.

For SDB Business Associates
6.7

You must not offer or accept any form of hospitality or entertainment you consider
disproportionate or might be perceived as improperly influencing the professional judgment ofSDB Personnel, or cause SDB Personnel to do or forebear to do something improper.

7.

Dealing with Public Officials

7.1

Notwithstanding that which has been provided under Paragraphs 5 and 6, you are prohibitedfrom offering gifts, entertainment and hospitality to any Public Official or his/her relative.

7.2

This is to avoid the perception that you are bribing a Public Official.

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8.

Referrals

8.1

SDB adheres to a zero-referral policy for all Public Officials. All other referral payments must
be made in accordance with the limits of authority document approved by the Board. Upon
approval, the agreement must clearly set out the basis and amount of the referral. This isbecause excessive referral payments for no apparent business reasons might be perceived asbribes and you must avoid such perceptions.

9.

Facilitation Payments

9.1

SDB does not offer or seek facilitation payments with the view of expediting applications andapproval processes which are contrary to procedural requirements for our business dealings
and transactions.

9.2

No SDB Personnel or SDB Business Associate shall offer monetary or non-monetary payments
and benefits for facilitation purposes, nor will they be involved, directly or indirectly, in andaccepting facilitation from any person.

10.

Donations and Sponsorships

10.1

Donations and sponsorships in money or in kind to support community events are part of SDB
Group’s corporate social responsibility efforts. All donations and sponsorships must be madein accordance with the limits of authority document approved by the Board.

10.2

Donations and sponsorships will not be offered during sensitive period eg. SDB Group will notsponsor government departments managing a tender process that SDB Group is participating
in immediately before and throughout the entire tender period.

11.

Audit and Record Keeping

11.1

Regular audits shall be conducted within SDB to ensure compliance to this Policy. Such audits
may be conducted internally or by an external party.

11.2

You are expected to ensure interactions with SDB are documented and retained. All suchrecords must be accurate and complete. Therefore, procedures and processes must be in place
to ensure that all transactions or other business conduct are properly authorised and accuratelyrecorded. The following information must be documented in order to maintain substantiality:
(a)
(b)
(c)
(d)
(e)
(f)

business purpose;
benefit received/provided and its value;date;
location and establishment (if relevant, i.e. if meal is hosted);
name, title, company and SDB Personnel and/or SDB Business Associate involved;
andnames and affiliations of other participating persons.

11.3

All such records must be kept for 6 years. SDB may in its discretion request for such
documentation at any time in connection with its internal or external audit.

11.4

Any failure to record transactions accurately, falsifying or creating misleading information or
influencing others to do so could constitute a fraud and result in penalties.

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12.

Conflict of Interest12.1

All SDB Personnel and SDB Business Associates are expected to avoid personal activities and/ or financial interests which could conflict with their responsibilities to SDB.

12.2

A conflict of interest is a situation where one or more persons or entities have competinginterests and the serving of one interest may involve detriment to another. Failure to identify
and appropriately manage conflicts of interest could result in inappropriate or adverse
consequences for all the parties involved, such as but not limited to reputational damage,regulatory sanctions, and risk of litigation.

12.3You must not let any decisions you make with regards to your business with SDB be influenced
by personal considerations such as but not limited to your personal relationships or externalinterests.

12.4

You must make known and withdraw from any business conduct with SDB that creates anactual, potential, or perceived conflict of interest.

13.

Non-Compliance
For SDB Group Personnel

13.1

Non-compliance may lead to disciplinary actions including termination of your employment
contract or contract for service. Further legal action may also be taken against you in the event
your non-compliance results in the harm or detriment of SDB Group’s interests or reputation.
For SDB Group Business Associates

13.2

Non-compliance may lead to penalties including suspension or termination of your contract
without prejudice to other legal rights SDB Group may have. Further legal action may also betaken in the event your non-compliance results in the harm or detriment of SDB Group’sinterests or reputation.

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