The Board of Directors of Air Selangor ("the Board") is collectively responsible for developing, implementing, and maintaining a sound corporate governance system and continuously employs good corporate governance to ensure the Company achieves its business objectives, operates efficiently, and manages risk effectively. Good corporate governance practices contribute towards value creation for all stakeholders by ensuring accountability through clearly defined roles and responsibilities and promoting transparency through reporting and disclosure.
Air Selangor observes the provisions of and complies with the Companies Act 2016, and other relevant regulatory requirements. As a state-owned entity, the Company is also encouraged to embrace the governance practices prescribed by the Malaysian Code of Corporate Governance (MCCG) 2021. In this regard, the Board of Air Selangor has established four Board Committees as above.
These Board Committees provide a platform for the Board to deal with specific matters that require specialised areas of expertise, including overseeing risk management and sustainability matters, reviewing the effectiveness of internal controls, making recommendations to the Board on significant matters of procurement, and other aspects of good governance. The establishment of these Committees will further strengthen the Company’s governance practices and enhance the overall management of Air Selangor through expert opinions to guide the Board in business decision-making.
As the sole water operator for Selangor, Kuala Lumpur, and Putrajaya, Air Selangor is subject to operating conditions and regulations set by the Selangor State Government and relevant authorities such as Suruhanjaya Perkhidmatan Air Negara (SPAN) and Lembaga Urus Air Selangor (LUAS). Therefore, as Air Selangor embarked on its Risk Management & Sustainability journey, we have implemented effective governance mechanisms to achieve our business objectives and drive organisational performance. Our robust Governance Framework identifies the operational and business risks faced by the company for necessary mitigation action.
As a provider of essential services, we place emphasis on business continuity, especially given the current environment. We have also strengthened legal and ethical principles throughout the company via the various approaches taken to eliminate corruption and bribery risks, with the introduction of various controls and practices that are aligned with regulations in Malaysia.
Air Selangor adopted an integrated risk management approach that contributes to the organisation's security, resilience, operational efficiency, risk tolerance profile and strategic decision-making process. As opposed to a compliance-based risk management approach, our integrated approach focuses on developing risk strategies and evaluating risks in the wider context of business strategy. It is also viewed as a collaborative tool that involves both functional and business leaders. Risk Management Department (RMD) in Air Selangor constitutes three different sections that focus on diversified set of risks as shown below:
Our board structure and policies
Board Charter of Pengurusan Air Selangor Sdn Bhd (Air Selangor)
The Board Charter serves as a guide to Directors and management with regard to the roles of the Board, its Board Committees, individual Directors, as well as the roles of the Chief Executive Officer (CEO) of the Company, and to assist the Board in discharging their fiduciary duties as Directors of the Company.
Board Risk & Sustainability Committee (BRSC)
This Terms of Reference (TOR) sets out the BRSC’s duties and responsibilities in overseeing the effectiveness of the risk management framework and risk-related policies, as well as the integration of sustainability into the corporate strategy and decision-making of the Company.
Terms of Reference of Board of Audit Committee (BAC)
This BAC TOR will ensure effective corporate governance, internal control, and external financial reporting practices. BAC also oversees the remit and work of internal auditors and ensures an objective and professional relationship with the external auditors.
Terms of Reference of Board Nomination and Remuneration Committee (BNRC)
This Terms of Reference (TOR) sets out the BNRC’s duties to manage the nomination and remuneration process for the various Board and Board Committees and other pivotal management positions within the Company.
Terms of Reference of Board Procurement Committee (BPC)
The BPC is set up to review and approve procurement proposals on awards and variation orders according to the Company’s Procurement Guidelines approved by the Board of Directors. This Term of Reference ensure transparency, fairness, good business ethics and no inducements in the decision-making process with respect to all procurement matters before making any approvals or recommendations.
Remuneration Policy & Procedure
This remuneration policy and procedure aims to attract, motivate and retain individuals of high calibre and talent at the Board of Directors level to drive the Company’s business goals and strategies and ensure long-term business sustainability.
Air Selangor Anti-Bribery and Anti-Corruption Policy Statement (ABAC)
Air Selangor is committed to complying with the policy to fulfil the ABAC requirement and serves as a guideline to all employees and business associates on their obligation in assisting in identifying and dealing with bribery and corruption issues.