The PETRONAS Code of Conduct and Business Ethics Country Supplement: is a specific reference for use in Malaysia. It does not describe all applicable laws or PETRONAS policies, or give full details on any particular law or policy. It does not constitute legal advice. It does not constitute or create a contract of employment. PETRONAS reserves the right to modify, revise, cancel or waive any policy, procedure or condition without notice and without revision of the Code. Moreover, the provisions of the Code may be modified by PETRONAS to adapt them to local laws and conditions.

©PETROLIAM NASIONAL BERHAD (PETRONAS) 2013. All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. Contents

COUNTRY SUPPLEMENT: MALAYSIA

Part I: Conduct Tending to Jeopardise Duty of Good Faith and Fidelity...... 4 1. Serious Pecuniary Indebtedness...... 4 2. Borrowing Money...... 5 3. Living Beyond Official Emoluments and Legitimate Private Means...... 5

Part II: Information Security...... 7

Part III: Workplace Culture & Environment...... 8 1. Absence Without Leave or Without Reasonable Cause...... 8 2. Dress Code...... 9

Part IV: Disciplinary Process and Sanctions...... 11 1. Disciplinary Process...... 11 2. Disciplinary Punishments...... 11 3. Punishing Authority...... 12 4. Appeal Procedure...... 12 COUNTRY SUPPLEMENT: Malaysia

PART I: CONDUCT TENDING TO JEOPARDISE DUTY OF GOOD FAITH AND FIDELITY

1. serIOUS PECUNIARY 1.2. INDEBTEDNESS Serious pecuniary indebtedness from whatever cause will be regarded as 1.1. necessarily impairing the efficiency For the purpose of this Section, the and effectiveness of an employee. term “serious pecuniary indebtedness” means the state of an employee’s 1.3. indebtedness which, having regard An employee will avoid habitual to the amount of debt incurred by indebtedness unless he/she proves him/her has actually caused financial that such indebtedness or insolvency hardship to him/her. is the result of circumstances beyond his/her control and does not result An employee will be deemed to be from extravagances or dissipation. in serious pecuniary indebtedness where:- 1.4. An employee will be required to a) he/she is a judgment debtor, for disclose the full extent of his/her as long as the judgment sum serious pecuniary indebtedness to remains unsettled; or PETRONAS at the earliest opportunity when such indebtedness is known to b) he/she is a bankrupt or an him/her. insolvent wage earner, for as long as he/she remains as a bankrupt 1.5. or for as long as any judgment An employee who obtains an sum against him/her in favour of annulment of his/her bankruptcy may the Director General of Insolvency be treated as having fully restored his/ remains unsatisfied, as the case her credit standing. may be.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 4 COUNTRY SUPPLEMENT: MALAYSIA 2. BORROWING MONEY 3. lIVING BEYOND OFFICIAL EMOLUMENTS AND LEGITIMATE 2.1. PRIVATE MEANS You may borrow from banks, insurance companies, co-operative 3.1. societies or borrowing companies Where in the opinion of PETRONAS an licensed under the Malaysian Financial employee is or appears to be: Services Act 2013 or incur debt through acquiring goods by means a) maintaining a standard of living of hire purchase agreements or other which is beyond his/her official arrangements, provided that: emoluments and other legitimate private means, if any; or a) such banks, insurance companies, co-operative societies b) in control of or in possession of or borrowing companies from pecuniary resources or property, which you borrow are not directly movable or immovable, the value or indirectly subjected to your of which is disproportionate to, official authority; or which could not reasonably be expected to have been acquired b) such borrowings do not lead by the employee with his/her to public scandal or be subject to official emoluments and any construal that you have abused legitimate private means subject to your position for our private the requirements of applicable law, advantage; or PETRONAS may call upon the employee to explain in writing c) the aggregate of your debts does how he/she is able to maintain the not or is not likely to cause you said standard of living or how serious pecuniary indebtedness as he/she acquired his/her pecuniary defined under Section 1. resources or property and also may be required to make declaration 2.2. of his/her assets which may include You may not borrow from any other assets belonging to his/her family/ personengaged in the business of household. Such declarations as money lending. aforesaid should be made to your Human Resource Department. 2.3. You must comply with the limitations on borrowing set out in the Code.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS COUNTRY SUPPLEMENT: MALAYSIA 5 3.2. 3.3. Failure to make the asset declaration For the purpose of this Section, as required under Section 3.1 is “assets” includes property of any viewed by PETRONAS as a lack of description, whether movable or commitment on the part of the immovable, as may be prescribed by employee to uphold PETRONAS’ PETRONAS from time-to-time. In policy on maintaining the highest respect of immovable property, assets standard of integrity, openness and include:- transparency. i. land, including land occupied under temporary occupation licence;

ii. all types of residence such as houses, flats, apartments and condominiums; and

iii. building, including a shop or portion of a shop, office space or stall.

In respect of movable property, assets include:-

i. any form of cash wherever deposited or retained;

ii. shares, stocks, debentures, bonds or other securities;

iii. any form of trade, business or commercial licence permits; and

iv. any other movable property, including all types of motor vehicles, jewellery, club memberships, household furniture and sports equipment.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 6 COUNTRY SUPPLEMENT: MALAYSIA PART II: INFORMATION SECURITY

You must comply with the PETRONAS Information Security Policy in effect from time-to-time, which may be obtained from Group Chief Information Officer.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS COUNTRY SUPPLEMENT: MALAYSIA 7 PART III: WORKPLACE CULTURE AND ENVIRONMENT

1. aBSENCE WITHOUT LEAVE OR 1.3. WITHOUT REASONABLE CAUSE Where an employee is absent for more than two (2) consecutive 1.1. working days without reasonable An employee who is absent will, at excuse, as soon as possible thereafter the earliest opportunity, inform the a registered letter will be sent to officer of PETRONAS to whom he/ the employee’s last known address she reports of his/her absence and the requiring him/her to provide cause for his/her absence. explanation for his/her absence. Upon a lapse of seven (7) days after posting 1.2. of the said registered letter, if nothing Where the absence without leave and is heard of him/her or no satisfactory without reasonable excuse is for more explanation is given by him/her, then than two (2)consecutive working days, the said employee is deemed to have the employee will be deemed to have broken his/her contract of service and breached his/her contract of service in such circumstances PETRONAS with PETRONAS. will have the right to terminate his/her service. In addition, PETRONAS will be entitled to recover from the former employee concerned all sums due from the employee to PETRONAS.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 8 COUNTRY SUPPLEMENT: MALAYSIA 2. DRESS CODE e) Footwear must be appropriate and suitable. , flat / All employees should be neatly, slip-ons, loafers, thongs, flip-flops, appropriately and decently attired sport shoes, athletic shoes, during office working hours. sneakers, rubber boots or are Provocative and improper attire is not not allowed. Exemption is given for allowed. those with medical reasons.

2.1. 2.2. Male Employees Female Employees

a) All male employees must wear a) Female employees will wear attire long sleeved shirts with the which is appropriate and suitable exception of on Smart Casual Day, for an office working environment. when short sleeved shirts are The length of skirts must not be allowed. Shirts must be tucked in. above the knee. Smart Casual Day is applicable on every Friday (for employees b) Female employees are allowed to working from Monday to Friday) or wear office-appropriate pant suits. Thursday (for employees working Jeans and shorts are not allowed. from Sunday to Thursday) or any other day identified by PETRONAS. c) Footwear must be appropriate and suitable. Slippers, flat sandals b) Male executives are no longer be and sport shoes are not allowed. required to wear neck ties to work Exemption to wear flat sandals is except when required to do so for given to pregnant employees and official business meeting and/or for those with medical reasons. functions. 2.3. c) ‘’ attire, complete with Uniformed Employees ‘samping’ and ‘’ is allowed on Fridays. All uniformed employees must wear their designated uniforms at all times. d) Casual printed shirts, T-shirts, sweatpants, jeans, exercise pants, track bottom, all types of shorts, and any spandex or form fitting pants, such as cycling shorts, are not allowed.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS COUNTRY SUPPLEMENT: MALAYSIA 9 2.4. 2.8. Other Forms of Attire For the Purpose of this Section:

Attire, other than those specified “Cross-dressing” means when a male above, including the specified types employee dresses or makes himself of shoes, may be worn during office up as a female or when a female hours if it is a requirement of the job employee dresses or makes up herself and said attire is approved by your as a male. Head of Department. “Neat and appropriate attire” 2.5. means decent, suitable, smart and Cross-dressing professional attire.

Cross-dressing is not allowed. “Provocative or improper attire” means inappropriate and unsuitable office 2.6. attire. Dress Code for Official Functions This includes transparent or tight Employees must be appropriately /, body hugging attired in accordance with the dress shirts/blouses/knitted blouses, low cut requirements for a particular function. collar/necklines, bareback dresses, In the absence of any specific tight skirts/slacks/pants, high slit skirts/ requirement, the employee must that reveal the thighs and follow the PETRONAS Dress Code. short skirts.

2.7. Hair for Male Employees

Hair should be neat. The length should be above the collar.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 10 COUNTRY SUPPLEMENT: MALAYSIA Part IV: Disciplinary Process and Sanctions

1. dIsciplinary Process 2. dIsciplinary Punishments

1.1. The Punishing Authority may after due Where the circumstances warrant, inquiry impose any or a combination PETRONAS may suspend an of the following punishments against employee on full or half pay pending the employee: the investigation and/or inquiry into alleged acts of misconduct committed i. written warning; by the employee. ii. suspension with or without pay 1.2. for a period to be determined by If the investigations reveal concrete the Punishing Authority; and cogent evidence in support of the alleged misconduct, PETRONAS may iii. withholding the employee’s institute disciplinary action against the increment for a period to be said employee. determined by the Punishing Authority;

iv. no increment to the employee’s salary for a period to be determined by the Punishing Authority;

v. non-payment of bonus or ex- gratia;

vi. downgrading or demoting the employee;

vii. any other types of punishment as the Punishing Authority deems fit;

viii. dismissal.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS COUNTRY SUPPLEMENT: MALAYSIA 11 3. Punishing Authority 4.3. The Appeal Authority shall consider For the purpose of this Part IV, the appeal on the basis of the “Punishing Authority” shall refer to written submissions by the aggrieved the officer of PETRONAS who has employee and also after considering been given the authority to mete out the report of the Domestic Inquiry and punishment against an employee as the grounds for the decision as made provided by the Human Resource by the panel of the Domestic Inquiry. Management Limits of Authority. 4.4. For the purpose of this Section, 4. aPPeal Procedure “Appeal Authority” shall refer to the officer of PETRONAS who has been 4.1. given the authority to consider and An employee who is aggrieved by the decide on appeal as provided by the decision of a disciplinary action has Human Resource Management Limits the right to appeal in writing within of Authority. 30 days from the date of service or posting of the letter communicating the decision of the Punishing Authority.

4.2. The Appeal Authority is to consider the grounds of appeal set out in the letter of appeal and is required to conclude whether to dismiss the appeal or to allow the appeal by either:

a) reversing the finding of guilt; or

b) reducing the punishment.

PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 12 COUNTRY SUPPLEMENT: MALAYSIA PETRONAS CODE OF CONDUCT AND BUSINESS ETHICS 16 COUNTRY SUPPLEMENT: MALAYSIA