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234 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

AUDIT, GOVERNANCE AND

RISK COMMITTEE REPORT

services rendered by the external auditor amounting to
Others RM136,000. The non-audit fees relate to two engagements
carried out in respect of Divestment of MSM Perlis;
a sum of RM99,000 of the total was approved by the Board
a. Reviewed and recommended the Corporate Governance on 24 February 2021 and the remainder was approved
Report and the following reports for Board’s approval for on 25 November 2021.
inclusion in the Annual Report 2020:
• Corporate Governance Overview Statement. CONTINUOUS LEARNING AND DEVELOPMENT
• AGRC Report. The Committee members are regularly kept updated on
• Sustainability Reporting on Economic, Environmental changes to accounting standards and issues related to
and Social. financial reporting through quarterly meetings.
• Statement of Risk Management and Internal Control. The members of the Committee had attended various
seminars, training programme and conferences to keep
The Committee reviewed the reports with focus on
meeting the Listing Requirements and reporting best abreast with changes in the industry and business
practices based on the guidance from the MCCG 2017 environment.
(now revised in 2021), Guidance to Directors of Public Further details on the training attended by the Committee’s
Listed Companies on the Statement of Risk Management members during the financial year 2021 are detailed out
and Internal Control and other best practice references. in the Corporate Governance Overview Statement
b. Reviewed and approved the Schedule of AGRC meetings under Directors’ Training on page 220 of this Annual
for year 2022. Integrated Report.

COMMITTEE EVALUATION
RELATIONSHIP WITH EXTERNAL AUDITOR
For year of assessment 2021, Board Evaluation Assessment
Through the AGRC, MSM Group maintain a professional
and transparent relationship with its external auditor. was carried out in 2022 which encompassed the
The External Auditor Policy (Policy) was developed to provide performance of the Committee and its Chairman as well as
guidance on matters related to dealing with the firm of the Independence of the Independent Directors.
professional accountants which is or will be appointed as The assessment focused on how effective the Committee
the external auditor for the statutory audit of MSM Group. had conducted its activities in 2021.
This Policy was approved by the Board on 23 February 2016
and will be further reviewed to update based on the latest INTERNAL AUDIT FUNCTION
requirement and best practices.
The Internal Audit function for MSM Group is outsourced
The Policy covers appointment and re-appointment of external to the holding company, FGV Holdings Berhad (FGV)
auditor, assessment of external auditor’s performance and Group Internal Audit Division (GIA). The Chief Internal
independence, audit partner rotation, audit delivery and Auditor reports functionally directly to the AGRC of MSM.
reporting, engagement of external auditor for non-audit The conduct of GIA is based on a Group Internal Audit
services and removal of external auditor. Charter, which was established consistent with the
requirements of Institute of Internal Auditor’s International
During the financial year ended 31 December 2021, Professional Practise of Framework and affirmed through
other than the assurance service for review of quarterly a Quality Assurance Review once every 5 years with the
Bursa announcement, there were also other non-audit most recent review in 2020.