This article first appeared in The Edge Malaysia Weekly on December 11, 2023 - December 17, 2023

PwC Malaysia’s Building Trust Awards returned for the fifth time in 2023 to commemorate the efforts public-listed companies in Malaysia are making in building trust among its various stakeholders — an especially important asset amid rising stakeholder scepticism.

In a gala dinner held on Dec 5, PETRONAS was named the winner of the awards from the FBM KLCI category while Malayan Banking Bhd came in second and Sime Darby Plantation Bhd was in third place. As for the FBM Mid 70 Index category, Fraser & Neave Holdings Bhd (F&N) came in first, followed by Yinson Holdings Bhd.

Commenting on the win, PETRONAS president and group CEO Tan Sri Tengku Muhammad Taufik says that the award is a fantastic recognition for the group. He reflected that credit needs to be given beyond the management to the entire workforce and all stakeholders who have supported the national energy company in making sure it disseminates a consistent message of responsibility and transparency in its dealings.

“As part of our shared values, we want to make sure that people recognise that we are a group that displays integrity and professionalism at all times.

“It is through our conduct and our dealings with all our stakeholders that we can earn that trust. What we have all learned over many years of operating is that trust is not something that is easy to earn but can be almost instantaneously lost when something goes wrong,” he adds.

F&N director of communications, corporate affairs and sustainability Karen Tan says being named the winner in the FBM Mid 70 Index category was a pleasant surprise for the group.

“This year being F&N’s 140th anniversary, the award is a significant recognition for us and it also shows that by delivering on our promises to stakeholders, it really is the best way for us to build trust,” she says. “It also encourages us to do a lot more and even better going forward.”

In PwC Malaysia’s managing partner Soo Hoo Khoon Yean’s opening speech, he highlights that only 51% of Malaysian CEOs polled in the firm’s 2023 Global CEO Survey believe that their companies will be economically viable for another 10 years or less if they do not change.

“This emphasises the importance of enhancing trust among stakeholders and achieving sustainable outcomes amid continued upheavals in the market. Trust needs to prevail.

“As a firm, we strongly believe in the value of trust as a critical business asset to sustain businesses through both favourable and adverse periods. It is the very reason why trust is our purpose at PwC,” he says.

Keynote speaker Bursa Malaysia chairman Tan Sri Abdul Wahid Omar encouraged public-listed companies in Malaysia to be true and consistent to their stakeholders.

“All of you are here tonight because you understand how important trust is for the survival of your organisation. As leaders, be consistent, follow through on your commitments and keep any promises that you make. You don’t need to be perfect in any of these traits to be a trusted leader because trust is a journey. But, you do need to be true and consistent,” he says.

PwC Malaysia’s Building Trust Awards is the first in Malaysia that measures companies’ efforts in building trust, beyond the financials of the companies assessed. The awards was conceived in 2015 as a flagship initiative under PwC’s Building Trust programme to encourage Corporate Malaysia to recognise trust building as an asset with tangible gains to the business.

PwC Malaysia’s Building Trust Awards recognises companies that have made the most effort in building trust with their stakeholders.

Finalists were shortlisted from the 100 public-listed companies that qualified for the awards. In this fifth instalment of the awards, the environmental, social and governance (ESG) reporting metric has been included in the shortlisting process given its importance as a business imperative.

PETRONAS was the winner in the FBM KLCI category, standing out for the strong positive trust perceptions its internal and external stakeholders held towards the national energy group.

Petronas’ public-listed entities — Petronas Dagangan Bhd (PDB) and Petronas Gas Bhd (PGB), which were shortlisted for the awards — had annual reports that gave a comprehensive view of their operations and articulated how their achievements were linked to their objectives. In a move that was seen as unconventional among public-listed companies, PDB’s annual report also guided readers through the ins and outs of its financial statements.

Both companies were top scorers in their category across all trust elements measured among the public. The companies also came up tops among the FBM KLCI finalists when it came to internal trust perception. Their employees had the strongest trust perception of the companies in its category, a reflection of their confidence in their ability to achieve what they set out to do.

In second place in the FBM KLCI category was Malayan Banking Bhd. The banking giant stood out for its integrated reporting in which it articulated its outcomes against key value creation activities, linking to its key performance indicators and business strategy. Its Audit Committee Report gave context as to why particular activities were carried out and their outcomes — for example, the internal audit function.

Public perception of the banking group was favourable. While it was hit by several negative news reports on service quality and information security, the bank quickly addressed the issues, enabling it to regain trust among customers.

Coming in third was Sime Darby Plantation Bhd, which did well in its narrative for the future, through its five-year strategic blueprint as well as a reflection of its 2022 performance. Notably, it was one of the few companies that made ESG disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) and highlighted its commitment to environmental issues.

The plantation company’s announcement on its sustainability strategies and changes to its governance structure, policies and procedures in response to scrutiny from cross-border authorities contributed to its positive public perception scores.

In the FBM Mid 70 Index category, Fraser & Neave Holdings Bhd (F&N) was named the winner. It had well-defined governance disclosures based on TCFD recommendations while sharing comprehensive disclosures on product quality and its adherence to safety standards in the F&B industry.

F&N had very strong public perception, particularly of its leadership — a sentiment that was echoed by the company’s employees. The employees expressed trust in their leaders’ fairness in assessing and rewarding performance.

Yinson Holdings Bhd came in second in the FBM Mid 70 Index category. It was outstanding in its integrated reporting, helping readers understand how risks are linked to its strategy and also articulated outcomes against key value creation activities and key performance indicators (KPIs). What stood out was the linkage to sustainability, which is part of its overall strategy.

Yinson also had a standalone TCFD report and provided a comprehensive Climate Goals Roadmap.

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