ETHICS IN ACTION
Upholding Integrity Through Innovation, Security, and Governance
Strong corporate governance is a cornerstone of QES’s long-term success. Transparency, accountability, and integrity are the pillars of our governance framework. We adhere to comprehensive ethical guidelines as outlined in our Code of Ethics and Conduct, Anti-Corruption and Bribery Policy, and Whistleblowing Policy. These policies ensure that all employees and stakeholders act with the highest levels of integrity and compliance.
QES has implemented stringent anti-bribery measures, supported by training sessions on anti-corruption practices for Board members and employees. We aim to achieve 75% training participation across our Malaysian workforce by FYE 2024. Our governance practices extend beyond policies, as evidenced by our proactive approach to monitoring regulatory changes and updating internal controls accordingly.
As of FYE 2023, QES recorded zero substantiated whistleblowing reports or instances of corruption, reflecting our steadfast dedication to ethical business practices.
At QES, we drive technological advancements in the semiconductor industry by remaining deeply committed to our PRIDE core values, which encompass quality, innovation, and reliability. Our focus on Research & Development (R&D) is essential to staying competitive in the rapidly evolving digital era. By allocating 7-8% of our manufacturing division’s revenue to R&D, we continuously enhance existing products, develop new technologies, and shorten delivery lead times while improving product and process quality.
Our commitment to quality is woven into every aspect of our operations—from manufacturing to product delivery—ensuring total customer satisfaction. Through a rigorous Quality Assurance (QA) process led by departmental heads, we ensure that every product meets the highest standards of performance, consistency, and compliance. This process spans procurement, production, assembly, and non-conformity management, with the goal of exceeding customer expectations every step of the way.
Outlined below are the key internal controls at QES designed to uphold product quality and safety standards. At QES, we innovate technology through our semiconductor equipment business. We are committed to satisfying all applicable requirements and continually improving the effectiveness of the quality management system through our PRIDE core values.
We are proud to announce that QES has achieved ISO 14001:2015 certification for 50% of our manufacturing sites in the FYE 2023. This achievement reflects our unwavering commitment to environmental management and demonstrates our adherence to international standards for minimizing environmental impact.
By integrating effective environmental management practices, we ensure that we maintain high quality in our products and services while fostering a sustainable future.
We generate value by delivering top-notch services, support, and products to our esteemed customers. Our customer service journey commences with our proficient sales team, who reach out to customers armed with comprehensive knowledge of our products to cater to their specific needs. Once orders are placed, our sales representatives keep customers informed about delivery schedules and processes.
Following each installation, we encourage customers to participate in our satisfaction survey, valuing both positive feedback and constructive criticism as catalysts for improvement. The survey covers four key areas: Sales Personnel, Products, Service Personnel, and Overall Purchase Experience. From product inquiry to installation service, every aspect is meticulously evaluated.
The data collected from these surveys are meticulously analyzed and discussed in the respective department’s monthly meetings, guiding our continuous improvement efforts and enhancing value creation for both our customers and our company.
QES maintains a collaborative rapport with both suppliers and industry stakeholders, leveraging these relationships to bolster our market presence and visibility. Our active engagement with national and international tradeshows and conferences serves as a cornerstone, providing invaluable networking opportunities and enhancing brand recognition.
Distinguishing ourselves from competitors, QES serves a diverse array of industries, including semiconductor, electrical and electronics, automotive, metal, oil and gas, mining, renewable energy, and more. In the fiscal year ending 2023, we enthusiastically participated in various national and international tradeshows pertinent to our extensive industry portfolio.
In our pursuit of sustainable and ethically responsible business practices, our Research & Development (R&D) endeavors have yielded significant innovations, particularly evident in the new product introductions for FYE 2023.
These cutting-edge advancements cater specifically to the semiconductor industry and include:
A state-of-the-art wafer batch ID reader, meticulously designed to optimize the cumbersome process of reading wafer IDs. This innovation not only bolsters operational efficiency but also mitigates the inherent risks of error, thereby conserving invaluable time and resources for our industry partners.
Our pioneering wafer stocker and sorter system for 150mm SiC boules, boasting a remarkable thickness range from 0.3mm to 25mm. This sophisticated solution directly addresses prevalent manufacturing challenges by delivering precise wafer handling and meticulous organization, thereby optimizing workflow and minimizing disruptive production incidents.
The new and improved version of our highly advanced wafer surface measurement system, featuring a non-contact 3D surface profiler and vibration isolation platform. This groundbreaking technology tackles pertinent manufacturing obstacles by furnishing exceptionally accurate surface measurements without compromising the integrity of delicate wafers. This enhances quality control protocols significantly.
Lastly, the development of our cutting-edge wafer macro AOI system, incorporating a 26MP area scan color camera with remarkable defect detection capabilities, detecting defects as minuscule as 0.21 x 0.21mm. This groundbreaking innovation markedly augments defect identification prowess, empowering manufacturers to swiftly pinpoint and rectify issues, thereby elevating product quality and dependability.
By investing in these pioneering solutions, we not only align with the evolving needs of our semiconductor industry partners but also champion sustainable manufacturing practices.
We are committed to establishing a diverse, responsible, and sustainable supply chain to bolster long-term value creation. Our goal is to foster enduring, mutually beneficial partnerships with suppliers, promoting collective growth within a profitable framework that minimizes disruptions and enhances efficiency. Aligning with our values, we strive to cultivate a responsible and sustainable supply chain.
Annually, we evaluate selected suppliers to elevate their performance and quality. QES is fully committed to complying with all applicable laws and regulations required in the conduct of our business, including due diligence obligations in the supply chain, covering areas such as anti-corruption, human rights, information security, fair trade, environmentally friendly practices, and child labor law requirements. Accordingly, the aim of the QES Supplier Code of Conduct (the ‘Code’) is to help us maintain this commitment by setting standards that we expect our suppliers, their employees, agents, subcontractors, and other representatives to respect and adhere to when conducting their business dealings.
The Code outlines standards for ethical behavior by QES employees and business partners.
The Code is applicable to all our suppliers and contains the minimum standards of adherence. It is integrated into contracts with our suppliers. Suppliers may also have individual contracts with QES that contain specific provisions and/or agreements relating to these standards. In case of conflict between the requirements outlined in law, individual contracts, and this Code, suppliers must comply with the strictest requirement. It is the supplier’s responsibility to disseminate, educate, and exercise diligence in verifying compliance with this Code among their employees, agents, and suppliers.
Suppliers who believe that a QES employee or anyone acting on behalf of QES has engaged in illegal or otherwise improper conduct with respect to their business with the supplier should report the matter to us. All reports will be handled confidentially. A supplier’s relationship with QES will not be affected by any honest report of potential misconduct.
Ensuring data security is paramount to us, safeguarding our sensitive information from unauthorized access. The Group recognizes its duty to protect the data of employees, customers, and business partners. To effectively manage our expanding assets and user base, we’ve implemented the following controls:
- Rigorous security measures over our IT infrastructure, including firewall protection, endpoint solutions, antivirus software, emergency power supply, server backup, and user access control.
- Adherence to our IT user policy, which governs information and data usage practices for all employees, in compliance with relevant data protection laws such as the Personal Data Protection Act 2010 (“PDPA”).
- Adoption of enterprise IT management software with advanced functionality for overseeing large-scale IT infrastructure.
- Regular refreshment of the IT team to ensure comprehensive coverage of operations (ITOps), development (DevOps), and security needs.
Despite the dynamic nature of the IT landscape, the Group has successfully averted IT breaches over the past three years. Although 2023 posed challenges, our IT team effectively mitigated most attacks. In response to a cyber-attack incident during the year, we swiftly recovered and identified areas for enhancing our IT infrastructure. This incident underscored the importance of ongoing education and information sharing to bolster employees’ knowledge and awareness of emerging IT threats. Zero substantiated complaints concerning breaches of customer privacy and losses of customer data were reported for FYE 2023.
- Code of Ethics and Conduct: A comprehensive set of guidelines outlining the ethical standards and behaviors expected of all employees and stakeholders.
- Anti-Corruption and Bribery Policy: A robust policy aimed at preventing corrupt practices and ensuring compliance with anti-bribery laws and regulations.
- Whistleblowing Policy: A mechanism for employees and external parties to report any unethical behavior, misconduct, or violations of company policies, with assurances of confidentiality and protection from retaliation.
- Corporate Governance Report: A detailed account of the Group’s governance structure, processes, and practices, providing stakeholders with insight into how governance principles are upheld within the organization.
- Board Charter: A document delineating the roles, responsibilities, and expectations of the Board of Directors, guiding their actions in accordance with best practices and regulatory requirements.
- Directors’ Fit And Proper Policy: Sets out the fit and proper criteria for the appointment and re-appointment of Directors on the Board of QES Group Berhad (“QES”) and its subsidiaries.
Anti-Corruption and Bribery
The Group maintains an unwavering commitment to zero tolerance towards any instances of bribery or corruption, as articulated in our Anti-Bribery and Anti-Corruption Policy (“ABAC Policy”), readily accessible on our corporate website. The ABAC Policy comprehensively outlines various activities that could constitute corruption and bribery, including gifts, entertainment and hospitality, donations and contributions, as well as other behaviors that may be deemed as such. Additionally, the ABAC Policy establishes guidelines for directors and employees to adhere to, ensuring compliance with all applicable laws, rules, and regulations in the performance of their duties.
To ensure the relevance and effectiveness of our ABAC Policy, the Board conducts periodic reviews, updates, and oversight, particularly in response to regulatory changes such as Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 (Amendment 2018) These reviews are crucial for maintaining alignment with evolving legal requirements and best practices in the field of anti-corruption.
Our commitment to transparency and accountability extends beyond mere policy formulation; we proactively disseminate and reinforce the ABAC Policy through various communication channels, including the corporate website, training or awareness sessions, and documentation in the Group Corporate Handbook, ensuring accessibility to all parties. Importantly, this policy applies to all entities within the Group, encompassing directors, employees, consultants, trainees, agents, suppliers, customers, and any third parties associated with the Group.
As at FYE 2023, approximately 80% of the Board and Key Management members have attended anti-corruption training since the introduction of the new provision, Section 17A of the MACC Act 2009 (Amendment 2018), on corruption offenses by commercial organizations. For FYE 2024, the Group will plan for more training and awareness-raising initiatives involving employees at all levels to equip them with the requisite knowledge and tools to recognize and report instances of bribery or corruption effectively. We have set an ambitious target to ensure that a minimum of 75% of our Malaysian employees undergo these targeted training sessions, thus fostering a culture of integrity and compliance throughout the organization.
While formal assessments for corruption related risks have not been conducted as of FYE 2023, we remain proactive in identifying and addressing potential vulnerabilities within our operations. This proactive approach includes regular reviews of our ABAC Policy, ongoing training and awareness initiatives for employees and close monitoring of regulatory developments in the field of anti-corruption. Moving forward, we are committed to implementing formal assessments to assess corruption-related risks across our operations, further reinforcing our dedication to transparency, integrity, and compliance.
In FYE 2023, the Group recorded zero substantiated whistleblowing reports, instances of bribery or corruption, fines incurred, or employees dismissed or disciplined due to anti-corruption and bribery.
Our Commitment to the Future
In “Ethics in Action,” QES, we remain committed to upholding the highest standards of corporate governance, ensuring that our business practices reflect integrity, transparency, and ethical responsibility. Through continuous innovation, rigorous data security, and unwavering governance, we pave the way for sustainable growth and long-term success.
2024 @ QES GROUP BERHAD (201401042911)