Corporate Governance


The practice of Corporate Governance is critical to SCC's strategic positioning plan as SCC moves from a government-support organisation to a self-sustaining organisation. SCC believes that it is important to set global principles that guide the Members in streamlining and govern the affairs of the Corporation, with a view to maximising long term value for the State Government and the interest of the stakeholders.

Good Corporate Governance ensures that there is a proper organisational system in place, which provides adequate internal controls with check and balance of authority mechanisms. Over the years, SCC has evolved processes and systems that enhance good corporate governance through the conduct of regular review for Continual Improvements.

Board Commitees


The Members has appointed a number of committees consisting of certain Members, as well as representatives from the Management as Secretary to the Committee to assist Members in streamlining and governing the affairs of the Corporation. The following are the principal committees:


The AEC is accountable to the Members and assists the Members in meeting its responsibilities for maintaining an effective internal control system.

This Committee reviews the compliance of procedures, policies, laws and regulations which could have a significant impact on the operations of the organisation. Besides, analysis and monitoring on the adequacy of internal controls, the emphasis on internal check and financial controls is also exercised.

Recently, its role has also been expanded to cover a review of the Corporation's Risk Management System.

AEC meets regularly with the Members to present independent reports of the AEC, and the External and Internal Auditors, to update and inform them on any material findings together with recommended actions taken or to be taken.

The Audit Examination Committee meets as and when required, and at least 4 times a year.

The Loan Application Appraisal Committee was established with a purpose to evaluate thoroughly the feasibility of project loan applications, where the approved amount is above RM100,000, prior to seeking for Members' approval.

Its function also includes reviewing and close monitoring on the development progress of all project loans, which was approved by the Members to ensure continuous viability and profitability.

The Loan Application Appraisal Committee meets as and when required, and at least once a year.

The Property Investment Committee serves as a to manage SCC's landed properties as well as to evaluate any other potential property/land investments in terms of feasibility and maximising returns to the benefit of SCC prior to seeking Member's approval. Any matters relating to acquisition and disposal of landed properties falls under the purview of this Committee.

The Property Investment Committee meets as and when required, and at least once a year.

The Bad Debts Write-Off Committee is set up to vet, evaluate and approve recommendations of non-performing loans to be written off by the Management prior to submission and endorsement by members of the Board. It is also under the jurisdiction of the Committee to ensure that proper criteria and procedures of bad-debts write off are complied in accordance with the guidelines approved by the State Cabinet.

The Committee also has the duty to assist Legal & Enforcement section in improvising their processes for effective and efficient enforcement.

The Bad Debts Write-Off Committee meets at least once in 3 or 4 months.

This Committee is established with an intention to assist Management in carrying out their responsibilities of managing and monitoring Non-Performing Loans (NPLs).

Meetings are held regularly to review loans which are four months and above in arrears together with effective recommendations on actions to be taken in mitigating NPL risks. It is also the concern of the Committee to ensure that the Corporation is managed in compliance to the Enactment, Government directives, procedures and policies of the Corporation.

Independent reports compiled under the SLS and Loan Review Committee are brought to the attention of the Members of the Corporation on a frequent basis for discussion purposes.

The Small Loan Scheme & Loan Review Committee meets as and when required, and at least once a year.

The Special Task Force Committee is established with the same purpose as the Small Loan Scheme & Loan Review Committee. However, the level of authority of this Committee is limited to only non-performing low cost housing accounts, which was formerly held by Lembaga Pembangunan Perumahan dan Bandar.

The Special Task Force Committee meets as and when required, and at least once a year.

In addition to the above committees, numerous management committees have also been established to assist the Members' of the Corporation to govern the day-to-day affairs of the Corporation from managing business risks, assessing adequacy of controls in processes to reviewing welfare of the staff and customers feedback for continual improvement purposes.

The following are the appointed committees with its functions:-

In order to assist Members of the Corporation in its risk management duties, Management has set up a central hub for risk management by establishing a Risk Management Committee (RMC) with an intention to manage and resolve with effectiveness on the risk associated with all aspects of the Corporation's business. The report compiled by RMC will for extended and briefed by the General Manager to the Members through Board meetings.

The Risk Management System would be independently reviewed under the Internal Audit function. Reports of the review by the Internal Audit would be communicated to the Members via Audit & Examination Committee.

Meetings are held once a month to evaluate the current status of risk parameters set and propose new improvement for the system.

Management Review Committee is one of the requirements of MS ISO 9000:2000 certification, which was obtained by SCC on 13 January 2004. This Committee was formed consisting of the senior management team, the appointed Management Respresentative, Document Control Officer and Head of the Internal Quality Auditor of MS ISO 9000:2000.

The purpose of the Committee is to evaluate the overall performance of SCC's quality management system and to identify continuous improvement opportunities.

These reviews are carried out at least twice a year.

The Committee was established since 21 January 2003 for the HeadQuarter and September 2003 for each of the District Client Centres to ensure speedy actions on all customer feedback and complaints effectively throughout Sabah.

The main functions of the Committee are to channel customers comments or to measure customer satisfaction particularly in customer delivery system for the management attention and to be reported in the Management Review (Majlis Kajian Semula Pengurusan) for further action.

The Customer Feedback & Complaint Committee meets at least once a month.

MEC meets regularly to consider human resource issues, especially in disciplinary actions taken or to be taken, terms and conditions of employment, remuneration, development of high potential employees and key succession planning.

MEC also reviews the incentive plans on an ongoing basis to ensure that they remain effective and appropriate to SCC's circumstances and prospects.

As with most businesses, SCC's performance depends on the quality and commitment of its people. Henceforth, one of the strategies of success is to attract, retain and motivate the very best people.

The Management Establishment Committee meets at least once a month.