Business Ethics and Corporate Governance

Corporate governance is overseen by our Board of Directors as part of its overall responsibility to uphold the highest standards of integrity and accountability. Guided by the Malaysian Code on Corporate Governance (MCCG) issued by Securities Commission Malaysia, we protect the interests of all our stakeholders, especially our shareholders.

In 2019, we established a Group Integrity and Governance Department (GIG) to create awareness of the Group’s zero tolerance for bribery and corruption and to set up the necessary systems to instil a culture of integrity Group-wide. In addition to implementing integrity programmes within the Group, GIG manages alleged incidents of corruption, abuse of power, malpractice and/or violation of our code of ethics within the organisation. It is GIG’s responsibility to investigate all such reports and follow up with the appropriate actions.

GIG is also currently driving Boustead Holdings Berhad (Boustead)’s ISO 37001:2016 Anti-Bribery Management Systems (ABMS) Certification. The Head of GIG is a Certified Integrity Officer (CeIO), endorsed by the Malaysian Anti-Corruption Academy (MACA), who reports to the Board Audit Committee.

About the ABMS

Some business units in the Group have already been ABMS certified, while the others – including Boustead – are working towards the certification. In order to be certified, we need to put in place global best practices to minimise, if not completely eradicate, any form of bribery or corruption within the organisation. This includes developing an anti-bribery policy, conducting corruption risk assessments, and putting in place personnel control, among others. ABMS functions as a framework for the Group to prevent, detect and respond to any form of bribery.

Whistleblowing channels available:
Hotline: 1-800-88-2040
Write to:
Head of Group Integrity & Governance (GIG), 2nd Floor, Menara Boustead, 69 Jalan Raja Chulan, 50200 Kuala Lumpur

Our Policies

Various policies are in place to guide Bousteadors in conducting our business ethically, transparently and with integrity.

Code of Ethics and Conduct (CoEC)

The Group’s CoEC comprises values, principles and guidelines that steer the Group towards ethical practices. It covers workplace bullying, sexual harassment, conflicts of interest, illegal gratification, business courtesies, confidentiality, financial and accounting integrity as well as our environment, health and safety. CoEC training is part of the onboarding process for new recruits, who are required to read and sign their acknowledgement to adhere to it. Subsequently, they renew their commitment biennially. The Board reviews the Code periodically to keep it relevant.

Anti-Bribery and Corruption Policy

The Group introduced our Anti-Bribery and Corruption (ABAC) Policy in September 2020 in order to meet the Guidelines on Adequate Procedures. The Policy inculcates an ethos of integrity, transparency and accountability across our five Divisions.

No Gift Policy

Boustead adopted a No-Gift Policy in 2019 to ensure that our Directors, employees, contractors, agents and representatives conduct their work in a fair and objective manner.

Whistleblowing Policy

The Group’s Whistleblowing Policy promotes a safe and confidential platform for employees to address any improper conduct within the Group, including bribery, abuse of power, fraud or sexual harassment.

Communicating Boustead’s Ethics & Integrity Policies

The Group’s ethics and integrity policies, as well as CoEC, are communicated to employees across the organisation through email blasts and other channels. Training sessions are also organised when new policies are introduced, and subsequently as refreshers.

Throughout the year, we conducted a total of 45 ethics and integrity-related training sessions which were attended by 5,224 participants. Through these sessions, we seek to enhance general awareness of integrity issues and our internal policies. Some of the sessions focused on Section 17A of the MACC Act as this was introduced relatively recently, while others served to prepare our business units for ABMS certification. We also enrolled our integrity personnel in external training geared towards the CeIO and ABMS Lead Auditor Certification.

In addition, we participated in the National Integrity Convention 2021, in conjunction with National Integrity Day. During the year, more than 2,000 employees signed our Integrity Pledge.

Corruption Risk Assessment (CRA)

CRA, a diagnostic methodology that forms part of ABMS, allows us to identify, analyse, assess and prioritise the Group’s internal and external corruption risks, including risks of bribery, embezzlement, fraud, theft and indiscretion, among others. By conducting CRA, we are able to generate corruption risk profiles, risk registers and risk action plans.

Related Activities Undertaken By Each Division:



  • Conducted inaugural CRA
  • In progress to obtain ABMS certification in 2022
  • Intensified the implementation of ABAC Policy to estates and mills
  • Implemented Integrity Pledge for all employees; and began implementation for business associates


Property & Industrial

  • Widened the reach of Integrity and ABAC awareness programmes
  • Conducted inaugural CRA
  • Implemented Integrity Pledge signing for employees
  • Conducted knowledge sharing session on company’s policies to new recruits during on-board training
  • Internal knowledge sharing sessions on ABAC, Whistleblowing & No-Gift Policy by monthly email postings



  • A dedicated CeIO to lead and manage integrity related matters
  • Conducted CRA and ABMS internal audits
  • Pharmaniaga Research Centre Sdn Bhd obtained ABMS certification in 2021, while Pharmaniaga Logistics and Distribution maintained its certification obtained in 2019
  • Three business units – Idaman Pharma Manufacturing Sdn Bhd (IPMSB), Pharmaniaga Manufacturing Berhad (PMB), and Pharmaniaga LifeScience Sdn Bhd (PLS) – are set to obtain ABMS certification in 2022


Heavy Industries

  • Boustead DCNS Naval Corporation Sdn Bhd (BDNC) obtained ABMS Certification
  • Implemented Integrity Pledge signing for employees
  • Internal knowledge sharing sessions on best practices on integrity risk management


Boustead and Trading, Finance & Investment

  • Shared integrity, anti-bribery and corruption awareness circulars covering 35 topics throughout the year
  • Launched Boustead’s Online Gift Declaration
  • Boustead personnel signed the Integrity Pact
  • Extended ABAC Compliance letter to Boustead business associates
  • Conducted inaugural ABMS internal audit in preparation for ABMS certification, targeted for 2022
  • Increased the number of CeIOs and certified ABMS lead auditors to lead and manage integrity-related matters