Corporate Governance | PETRONAS Chemicals Group Berhad (PCG)

Why It Matters

Upholding Integrity and Transparency

Employing good governance builds credibility and fosters trust among our stakeholders. It also provides valuable insights that strengthen our risk management capabilities. That’s why PCG remains committed to upholding a robust system of governance, integrity, and compliance guided by best practices. We acknowledge the importance of timely and transparent disclosures, and we are mindful that lapses could impact our reputation or regulatory standing. Our focus is on continuous improvement and proactive measures to ensure long-term business resilience.

Our Approach

PCG is committed to upholding strong governance practices across all jurisdictions in which we operate. We comply with Bursa Malaysia’s Main Market Listing Requirements (MMLR), the Securities Commission of Malaysia’s Malaysian Code on Corporate Governance (MCCG), and relevant international guidelines. Internally, we adhere to the PETRONAS Integrity Compliance Framework and the PETRONAS Code of Conduct and Business Ethics (CoBE). Our Board of Directors plays a key role in setting the tone from the top, fostering an ethical and transparent corporate culture. As an active member of industry-relevant trade associations, PCG promotes responsible business conduct and ethical standards. We also maintain a firm commitment to sound tax governance and regulatory compliance.

How We Provide Value

We maintain a well-balanced mix of skills, experience, and backgrounds among our board members. Representing various nationalities and professional disciplines, they bring deep expertise and a strong commitment to the company’s strategic direction
Our independent directors are free from any business or personal relationships that could compromise their objectivity. They do not participate in the company’s daily operations, ensuring impartial oversight and reducing the risk of undue influence.
All directors are required to declare any potential conflicts of interest prior to Board meetings. Where a conflict exists, they must recuse themselves from related discussions and decisions to uphold transparency and ethical governance.
PCG has established a clear set of criteria for assessing the independence of its directors. In addition to these internal standards, we also map our practices against the S&P Corporate Sustainability Assessment (CSA) to benchmark against global best practices.

We have appointed an Integrity Focal Person (IFP) who plays a key role in strengthening integrity and governance-related matters. This role is aligned with PETRONAS Group Integrity, which oversees four core functions: Complaint Management, Integrity Strengthening, Detection & Verification, and Governance.
To reinforce ethical conduct, we have implemented initiatives such as requiring all directors to sign the Integrity Pledge and mandating employees to submit asset declarations.
The PCG Corporate Office has obtained the ISO 37001:2016 Anti-Bribery Management Systems (ABMS) certification, demonstrating our commitment to preventing bribery and promoting transparency.
We have adopted the Prime Minister’s Office (PMO) Guidelines on Adequate Procedures, which are anchored on the five T.R.U.S.T Principles: Top-Level Commitment, Risk Assessment, Undertake Control Measures, Systematic Review, Monitoring & Enforcement and Training & Communication.

We actively engage with relevant trade associations to support our business stakeholders and uphold our sustainability responsibilities.
Our participation is focused on providing thought leadership in the petrochemical industry while maintaining neutrality and avoiding undue policy influence.

We are committed to upholding the highest standards of tax governance and compliance, ensuring fair and responsible tax contributions in the jurisdictions where we operate. For more information, refer to our Approach to Tax.

We provide clear policy statements outlining the standards of behaviour and ethical conduct expected of employees and third parties, as guided by the PETRONAS Code of Conduct and Business Ethics (CoBE).
Our Anti-Bribery and Corruption Policy and Guidelines address improper solicitation, bribery, and other forms of corrupt practices.
The PETRONAS Whistleblowing Policy offers a secure and confidential channel for employees and stakeholders to report misconduct.
Our Insider Trading Policy prohibits the Board and Principal Officers from trading securities based on non-public, material information.
The PETRONAS Tenders and Contracts Administrative Manual ensures that tendering activities are conducted fairly, based on technically sound and commercially competitive bids.
The Corporate Disclosure Guide outlines the standards for transparent and accountable information dissemination, in line with Bursa Malaysia’s Main Market Listing Requirements (MMLR).

We continuously monitor and disclose our sustainability performance across key economic, environmental, social, and governance indicators to ensure transparency, track progress, and support informed decision-making. For data related to this topic, refer our Corporate Governance and Policy Influence data.