In line with good corporate governance practices, the BOD and Management of KNM Group Berhad. (“KNM” or “the Company”) and its subsidiary companies (collectively known as the “KNM Group” or “the Group”) encourage its employees, directors and stakeholders to commit to the highest possible standards of integrity in the conduct of its business activities. Consistent with this commitment, the policy aims to support good management practices and sound corporate governance practices within the Group.

This policy aims to provide a structured mechanism for its employees, directors and associates (“reporting individual”) to rise or report suspected and/or known misconduct, wrongdoings, corruption and instances of fraud, waste, and/or abuse involving the resources of the Company to provide reassurance that they shall be protected from reprisals or victimisation for whistleblowing in good faith.

For the purpose of this policy, the wrongful activities or wrongdoings refers to any potential violations or concerns relating to any laws, rules, regulations, acts, ethics, integrity and business conduct, including any violations or concerns relating to malpractice, illegal, immoral, embezzlement and fraudulent activities which may affect the business and image of KNM.

The BOD of KNM has a stewardship responsibility to communicate the requirements of this policy and to guide the organisation in dealing with concerns arising from wrongful activities or wrongdoings.

The Policy of the BOD is:

1. To encourage active and moral obligation to report wrongdoings
All employees and others are required to report any ongoing or suspected wrongful activities or wrongdoings at the earliest possible stage through the proper channel of reporting so that immediate action can be taken.

2. To use internal disclosure to report wrongdoings
As far as reasonable, internal disclosure is encouraged and used to avoid public crisis.

3. To protect the whistleblower
Where the disclosure is made in good faith, the whistleblower shall be protected against victimisation or other adverse treatment.

4. To ensure appropriate and fair disciplinary actions
All actions taken against the alleged wrongdoers would be fair and without prejudice.

5. To require that an effective whistleblowing guideline be established and maintained by KNM

Whistleblowing guidelines shall be sufficient to:

• Prohibit legal sanctions for retaliatory action taken against the whistleblower;
• Establish timely, feedback, response and remedial and/or corrective action;
• Ensure that this policy is properly communicated to all employees;
• Establish procedures to maintain records confidentiality and retention; and
• Embed integrity, transparency and accountability within the business.