CORPORATE GOVERNANCE
KT is committed to upholding and endorsing strong corporate governance and internal control as key principles.
CORPORATE GOVERNANCE
KT is committed to upholding and endorsing strong corporate governance and internal control as key principles.
Upholding Responsible Practice
The Board of Koperasi Tentera (KT) is dedicated to maintaining the highest standards in corporate governance, professionalism, and integrity to enhance shareholder value and the performance of KT and its subsidiaries. The Board ensures adherence to good corporate governance practices, aligned with the principles and recommendations in GP 27: Co-operative Governance Guidelines by the Malaysian Co-Operative Societies Commission and guidelines from Bank Negara Malaysia and Malaysian Financial Reporting Standards. KT continuously strengthens its risk profile and practices, fostering a robust risk management culture across all organizational levels. We prioritize due diligence for new investments, employing conservative and prudent evaluation criteria. All new investments undergo a stringent risk mitigation process before Board approval, especially in the current economic climate..
Code of Governance for Co-operatives
On April 8, 2015, the Malaysian Co-Operative Societies Commission, under the Ministry of Domestic Trade, Co-Operative and Consumerism (KPDNKK), released GP27: Co-operative Governance Guidelines. These guidelines provide the foundation for KT's governance principles, outlining general principles, minimum standards, and specific governance requirements for co-operatives. GP27 encapsulates the best governance practices in the industry, aiming to help coop boards and management fulfill their roles more effectively. The guidelines assist all co-ops in examining and elevating their governance standards.
Good Governance Within KT
In May 2016, the Malaysian Co-Operative Societies Commission officially gave their first level approval for KT to become a Co-operative Bank. To strengthen our corporate governance and internal control measures and ensure they align with this new mandate, KT has set up a Risk Management and Compliance Department (RMCD) in early 2016 and hired experienced key talent from the banking sector to helm the department.
The RMCD currently comprises three main units i.e. the Risk Management Unit, Business Continuity Management Unit and Compliance Unit. Together, these units continue to strategically formulate and implement relevant policies and initiatives aimed at establishing a sound risk management and internal control framework within KT as well as structures to ensure the Group’s business continuity and compliance measures are in top form.
As part of our efforts to strengthen our information and communication technology infrastructure, KT have documented and implemented the Standard Operating Procedures and Membership, Insurance, Financing, Compliance and IT modules of our Core Banking System. We have also operationalised the policies for the Group’s transformation into a co-op bank based on the guidelines of Malaysian Co-Operative Societies Commission and Bank Negara Malaysia.
KT’s current financial reporting structure is based on and complies with the Malaysian Financial Reporting Standards. This sets the platform for us to further enhance our compliance with industry governance standards as well as to strengthen the integrity of our organisation.
Looking forward, KT’s management team will continue to monitor the latest corporate governance trends, as well as changes in regulatory and reporting requirements. We will diligently evaluate the areas that will require our attention for implementation with a key focus on the areas of independence, accountability, transparency and risk management which are imperative for maintaining the confidence and trust of all our stakeholders.
Formalise Ethical Standards through KT’s Code of Ethics and Conduct
KT’s CEC requires all officers and employees to observe high standards of business and personal ethics in carrying out duties and responsibilities. As employers and representatives of KT, or any of its subsidiaries, they must practise honesty and integrity in fulfilling their duties and responsibilities, and comply with all applicable laws and regulations. It is thus the responsibility of all officers and employees to comply with the CEC and to report violations or suspected violations thereto.
Koperasi Tentera (KT) has established a code of ethics which set out the standard of conduct expected in the management of its businesses across the entity. All stakeholders are expected to comply with these standards in the discharge of their duties.
As part of KT’s on-going efforts to strengthen governance and internal control, we have established a Whistleblowing Policy for KT. This policy provides a channel for KT`s employees and other relevant stakeholders to raise concerns about workplace malpractices and unethical behaviour in a confidential manner. On top of that, it guides KT to investigate alleged malpractices and take steps to deal with such in a manner consistent with internal policies and procedures and relevant regulations.
Who should raise a concern?
All staff and stakeholders can raise any inappropriate conducts which include but not limited to the following:
- Fraud;
- Bribery;
- Abuse of Power;
- Conflict of Interest;
- Theft or embezzlement;
- Misuse of Company’s Property;
- Non-compliance with Procedure
How to make a disclosure?
Avenue of the disclosure for Inappropriate Conduct shall be made to any of the following:
- Any of the Designated Officer (DO) via office email; or
- Website via protected email address- whistleblowing@katmb.com.my
- This email facility is secured, which can only be accessed by Head, Internal Audit Department.
Please refer the KT Whistleblowing Policy Hand Book for information in regards to the policy.
Koperasi Tentera reserves the right to amend this policy from time to time.
Please click here to report inappropriate conduct.
Directors and principal officers are required to declare their respective shareholdings in KT and related companies and their interests in contracts or proposed contracts with KT or any of its related companies. The interested Directors concerned shall abstain from deliberating and voting in relation to these transactions.
An internal compliance framework exists to ensure that the Group meets its obligations including obligations relating to related party transactions. The Board, through the Audit and Risk Committee, reviews all related party transactions involved. A Director who has an interest in a transaction must abstain from deliberating and voting on the relevant resolution in respect of such transaction at the Board and at any general meeting convened to consider the matter.