Governance
Effective, Accountable & Transparent
OUR GOVERNANCE GOALS
CORPORATE GOVERNANCE
Leveraging on the invaluable assets of a strong & effective Board of Directors
Objectives:
To have a good mix of committed board directors who are experienced & independent to provide corporate’s oversight.
Scope:
- Board of Directors
- Board Diversity
Strategies:
Have a strategic corporate governance structure
Value Creation:
To ensure the creation and protection of shareholders’ value
ETHICS & TRANSPARENCY
Building deep trust among stakeholders of the company
Objectives:
To set ethical conduct expectations to all our stakeholders in ensuring fair business dealings
Scope:
- Business Conduct
- Communication
- Compliance
- Anti-Corruption
Strategies:
Clearly defined process and procedures, Training and education, Open communication, Third party accreditation
Value Creation:
To build trust and confidence among stakeholders
DIGITALISATION
Improving efficiency, transparency & speed
Objectives:
- To transform our internal processes, operations and systems into the digital age
- To enhance the timeliness of data update & transparency of our data recording system
Scope:
- Automation
- Efficiency
- Timeliness
Strategies:
Invest in technology and operational infrastructure
Value Creation:
- To build a culture of excellence that meet our stakeholders’ needs and expectation
- To create an environment that supports employees’ personal and professional development
- To encourage continuous learning
SUSTAINABLE OPERATIONS
Ensuring our business thrive for the people, environment & economy
Objectives:
To continue inculcating a growth mindset towards the growth of the company focusing on the People, Planet & Prosperity for the company’s sustainability
Scope:
- Continuous Improvement
- Performance Measurement
Strategies:
Streamline all our strategies on a growth mindset that focuses on the People, Planet & Prosperity
Value Creation:
- To be a world-class sustainable plastic packaging manufacturer
- To double the group’s revenue to RM 2 billion by FY2027
CORPORATE GOVERNANCE
Leveraging on the invaluable assets of a strong & effective Board of Directors
Objectives:
To have a good mix of committed board directors who are experienced & independent to provide corporate’s oversight.
Scope:
- Board of Directors
- Board Diversity
Strategies:
Have a strategic corporate governance structure
Value Creation:
To ensure the creation and protection of shareholders’ value
ETHICS & TRANSPARENCY
Building deep trust among stakeholders of the company
Objectives:
To set ethical conduct expectations to all our stakeholders in ensuring fair business dealings
Scope:
- Business Conduct
- Communication
- Compliance
- Anti-Corruption
Strategies:
Clearly defined process and procedures, Training and education, Open communication, Third party accreditation
Value Creation:
To build trust and confidence among stakeholders
DIGITALISATION
Improving efficiency, transparency & speed
Objectives:
- To transform our internal processes, operations and systems into the digital age
- To enhance the timeliness of data update & transparency of our data recording system
Scope:
- Automation
- Efficiency
- Timeliness
Strategies:
Invest in technology and operational infrastructure
Value Creation:
- To build a culture of excellence that meet our stakeholders’ needs and expectation
- To create an environment that supports employees’ personal and professional development
- To encourage continuous learning
SUSTAINABLE OPERATIONS
Ensuring our business thrive for the people, environment & economy
Objectives:
To continue inculcating a growth mindset towards the growth of the company focusing on the People, Planet & Prosperity for the company’s sustainability
Scope:
- Continuous Improvement
- Performance Measurement
Strategies:
Streamline all our strategies on a growth mindset that focuses on the People, Planet & Prosperity
Value Creation:
- To be a world-class sustainable plastic packaging manufacturer
- To double the group’s revenue to RM 2 billion by FY2027
CORPORATE GOVERNANCE
Board of Directors
Leveraging on the invaluable assets of a strong & effective Board of Directors
Objectives
To have a good mix of committed board directors who are experienced & independent to provide corporate’s oversight.
Our Sustainability Indicator
Good corporate governance creates a conducive business environment for long-term growth. Our efforts are underpinned by a board of directors elected to represent shareholders in providing strategic and independent oversight for the corporation’s affairs, including corporate management, activities, policies, and more.
Board of Directors
In 2021, the Board comprised eight directors who met on four occasions, during which they approved the company’s financial statements. The Board receives updates and reviews from internal and external experts on issues of importance to the company.
Sustainability governance
Sustainability-related topics fall under the purview of the executive committee, assisted by the risk management task force. Our executive director represents the executive committee in reporting the sustainability-related matters to the Board of Directors.
We led our sustainability framework from the top-down, and each level of our organisation holds its respective responsibilities.
Thong Guan’s Board of Directors Distribution
Board of Directors
- Review the Group’s sustainability matters and ensure business strategy considers sustainability; and
- Provide advice and direction of sustainability in the Group when
Management/ Risk Management Task Force
- Responsible for assessing and identifying material sustainability factors;
- Develop sustainability strategy and recommendation, and regular revision is in place;
- Undertake actions necessary to address sustainability concerns; and
- Oversees operating divisions in ensuring the robustness of the system of sustainability management.
Operating Division
- Support strategy implementation developed by the management to ensure sustainability objective is achieved;
- Ensure sustainability processes and controls are in place within its departments/ functions; and
- Review and feedback on all measurements for improvement.
Conclusions
- 100% board meeting attendance
- 100% independent directors on audit, nominating & renumeration committee
ETHICS & TRANSPARENCY
Business Code of Conduct
Building deep trust among stakeholders of the company
Objectives
To set ethical conduct expectations to all our stakeholders in ensuring fair business dealings
Our Sustainability Indicator
Ethics & transparency
Thong Guan strives to uphold high ethical standards in all aspects of our business. Our Business Ethics and Code of Conduct set the ethical conduct expectation for our Group.
Thong Guan encourages employees and contractors to ask questions, voice concerns and report any alleged violations of company policies.
In addition to our open-door communication culture, we have the Whistleblowing Policy, providing an independent channel to offer more accessible, secure, and confidential reporting. We respect confidentiality, subject to legal requirements, and strictly prohibit retaliation against any employee for submitting concerns—audit Committee reviews reports of suspected violations concerning ethics and management integrity.
Our audit committee, comprising three independent directors, oversees accounting and internal control matters for the company, including compliance with legal and regulatory requirements. Thong Guan conducts quarterly internal audits and self-assessments to verify the effectiveness of our control system.
Anti bribery & corruption
In FY2021, we reviewed and updated our risk analysis in relation to anti bribery and corruption. Anti-corruption training was carried out in FY2021. Below is our anti-corruption and anti bribery data for FY2020 and FY2021.
Financial year | 2020 | 2021 |
|---|---|---|
Number of corruption and bribery case | 0 | 0 |
Political contribution made
| 0 | 0 |
Facilities payment made | 0 | 0 |
Fines imposed in relation to corruption, bribery | 0 | 0 |
Conclusions
- ZERO corruption & bribery cases, political contribution, facilities payment, and fines imposed in relation to corruption and bribery
DIGITALISATION
Digital Transformation
Improving efficiency, transparency & speed
Objectives
- To transform our internal processes, operations and systems into the digital age
- To enhance the timeliness of data update & transparency of our data recording system
Our Sustainability Indicator
Digital transformation
Digitalisation in business helps us improve our operations’ efficiency, making automation possible. It also helps us reduce human errors and operational costs.
We digitalised our production processes, including implementing Manufacturing Execution System (MES), a computerized system used in manufacturing to track and document the transformation of raw materials to finished goods.
Our digitalisation initiatives in FY2021 also include implementing the auto weighing system on the production floor and introducing a digital monitoring and reporting on waste management.
In 2022, we plan to upgrade procurement system with Robotic Process Automation (RPA) and Supplier Relationship Management (SRM) to promote timeliness and update of data and enhance the transparency of our data recording system.
Conclusions
- Implemented Manufacturing Execution System (MES) to track and document the transformation of raw materials to finished goods
- Automated the weighing system on the production floor
- Introduced digital monitoring and reporting on waste management
SUSTAINABLE OPERATIONS
Continuous Improvements
Ensuring our business thrive for the people, environment & economy
Objectives
To continue inculcating a growth mindset towards the growth of the company focusing on the People, Planet & Prosperity for the company’s sustainability
Our Sustainability Indicator
SOM & strategies
Our Sustainable Operations Management (SOM) drives the operational strategies of the company. They cover the procedures, processes, practices and systems we have initiated, created and delivered. In which are profitable for our business using the resources at our disposal while taking preservation of the nature and social environment into account.
Eleven Malaysian companies made it to Forbes Asia’s Best Under A Billion 2021, which recognises 200 top performing publicly listed small and midsized companies in the Asia-Pacific region with less than US$1 billion (RM 4.16 billion) in revenue and consistent top- and bottom-line growth.
Conclusions
- Despite the Covid-19 pandemic, our company still recorded an increase in revenue by 26.5% and PAT increase by 22.1%
- Paid 5.5 cents per share dividend to shareholders (total RM 21.1 M) to shareholders
- Paid RM 14.7 M tax to support the development of the countries where we operate
- Thong Guan Industries made into the list of Forbes Asia’s Best Under A Billion 2021, one of the only eleven Malaysian companies.