WHISTLE BLOWING POLICY

1. Introduction

The Board and Management of Kobay Technology Bhd. acknowledged the importance of good
corporate governance practices and with the introduction of the Whistleblower Protection Act 2010
by the regulatory bodies, the Group encourage its employees (inclusive associates, herein refers to
as “the reporting party”) to report suspicious or alleged misconduct, wrongdoings, corruption, fraud,
waste, sexual harassment, discrimination and/or abuse in utilizing the resources of the
Company/Group.

2. Objective

The objective of this policy and procedures is to provide and facilitate a mechanism on how the
reporting party (“RP”) dealt with suspicious or alleged misconduct, wrongdoings, corruption, fraud,
waste, sexual harassment, discrimination and/or abuse.

3. Policies and Procedures

3.1 General

The Policy allows the RP to either, identify themselves or prefer to be remain anonymous, when
reporting a suspected or alleged instances or event of misconduct, wrongdoings, corruption, fraud,
waste, sexual harassment, discrimination and/or abuse.

The Group Human Resource Policy and Procedures has governed the reporting channel for any
internal affairs/report (therein termed as “grievances”). The ultimate channel to report to for any
internal event is the Executive Committee, the Board’s Committee then the Board of Directors.

3.2 Scope and Definition

3.2.1 Misconduct and wrongdoings

The Group Human Resource Policy and Procedures has clearly ruled out in its Chapter 7 on
all potential misconduct and wrongdoings as well as the disciplinary action procedures to be
taken against the employee.

3.2.2 Corruption, Gift or Questionable Payments

It is the Group’s Code of Business Conduct that employees are involve in accepting any gift
or gratuities or corruption either by accepting or making questionable payments will be
subject to disciplinary action or in a serious scenario will be subject to civil or criminal
offenses imposed by the related law and regulations.

3.2.3. Fraud

Fraud is an act of making false and misleading representations of material facts, whether by
words or conduct, for personal benefits.
 Fraud includes (but not limited to) any questionable accounting practices or irregularities in
the Company’s report or financial statements and non-compliance to the Company’s
Internal Control Policy.

RP may or may not be the interested party however if the act is committed knowingly,
wilfully and intentionally, it is deemed to be fraud.

3.2.4 Waste

Waste is using resources whether is of monetary, goods or services in excess of the actual
need. It does not necessary benefit the RP but may be an act of poor management or
mismanagement of the Company’s resources.

3.2.5 Abuse

Abuse is of a practice where caused the Company to incur unnecessary cost utilizing the
Company’s time, information or resources for own use or benefits.

3.3 Procedures

3.3.1 Save for any internal affairs which governed under the Group Human Resource Policy and
Procedures, if the RP suspects of any misconduct, wrongdoings, corruption, fraud, waste,
sexual harassment, discrimination and/or abuse, he/she shall contact the Chairman of the
Audit and Risk Management Committee (“ARMC”) (and copy for internal affairs to Group
Human Resource Head, if needed).

Mr. Khaw Eng Peng

Chairman of Audit and Risk Management Committee
Wisma Kobay,
No. 42-B, Jalan Rangoon,
10400 Georgetown,
Penang.
Tel.: 04-3711338
Email : cosec@kobaytech.com

In the event if there is a need to contact Group Human Resource Head for internal affairs
matter, the RP may report the matter via hrdept@kobaytech.com.

3.3.2 If the RP wish not to disclose himself/herself, he/she may download the form from Kobay
website under the Whistleblower Policy and direct the duly completed form and submit via
online by clicking the relevant person addressed to (either the Chairman of the ARMC or
Group Human Resource Department or both) for investigation.

3.3.3 The RP may follow up the matter to the person either via email or by call after seven (7)
working days.

3.3.4 Save as the internal affair (Grievances) for which was governed under the Group Human
Resource Policy and Procedure, upon receipt of the compliant, the Chairman may himself or
through his assignee shall commence on a preliminary investigation to establish whether the
complaint is of genuine and substantiated prior to evidence collection.
3.3.5 The Chairman or his assignee may contact the RP for further fact and disclosure during the
investigation.

3.3.6 If the case is covered under the Group Human Resource Policy and Procedures, the Group
Human Resource Head shall initiate the investigation in accordance to the Group Human
Resource Policy and Procedures.

3.3.7 Otherwise, upon the compilation of sufficient evidence on the disclosure, the Chairman or
his assignee, other than those need the Board awareness and action, shall concluded the
solution or resolve the matter with proper record from the date of complaint received, the
investigation and the solution and disclose to the ARMC on the quarterly basis.

3.3.8 If there is no solution to the complaint, the Chairman shall notify the Board for advice on the
next course of action.

3.4 Assurance and Confidentiality to RP

Where the RP chosen not to reveal his/her identity, it is the Company’s policy to kept his/her
identity as private and confidential and whereas if the RP chosen to reveal his/her identity, it is the
Company’s policy to provide assurance that the RP identity shall be will be protected against any
reprisals from his/her immediate superior and without the RP’s prior written permission, shall not
reveal his/her identity to any party.

The Company shall also assures that no disciplinary action will be taken against the RP as long as
he/she does not provide any false information in reporting the instances or event which is basically
malicious in nature.

The Company shall treat the report as highly confidential and sensitive and will only reveal the
information on a “need to know” basis or if required by the law, court or authority.

3.5 Protection

The RP shall be protected against the following :-

(i) action causing injury, loss or damage;

(ii) intimidation or harassment;
(iii) interference with the lawful employment or livelihood of the RP, including
discrimination, demotion, suspension, termination or adverse treatment in relation to
the RP’s employment, career, profession, trade or business; and
(iv) a threat of any action to be taken against the RP under the abovementioned situation.

Where necessary, any person related or association with the RP, including the immediate family
members, shall accorded with the similar protection mentioned herein.

The Company reserves the right to relocate the RP’s place of employment if there is a need to do so
in protecting the RP.

However, the protection stated above will be revoked should the Company found that :-
 (i) the RP is personally participated in the improper conduct, wrongdoings, corruption,
fraud, waste and/or abuse;
(ii) the RP wilfully or maliciously made his disclosure, knowingly and believing that the
information is false or untrue;
(iii) the disclosure is of frivolous or vexatious; or
(iv) the disclosure is made with the intention or motive to avoid dismissal or other
disciplinary action to be taken against him/her.

4. Administration of the Policy

The Policy shall be review regularly to ensure that it continues to remain relevant and appropriate.
 REPORT OF MISCONDUCT, WRONGDOINGS, CORRUPTION, FRAUD, WASTE &/OR ABUSE

Kindly complete the form and submit to :-

Chairman of ARMC (cosec@kobaytech.com)

Group Human Resource Manager (hrdept@kobaytech.com)

* tick whichever is applicable

1. Name of the person/(s) you are reporting.

.................................................................................................................................

2. Name of the division/department in which the person/(s) works.

……………………………………………………………………………………………………………………………………….

3. Please provide a summary of the alleged misconduct, wrongdoings, corruption, fraud, waste
&/or abuse that you are reporting. (inclusive the day, month and year of each event occurs and
how you come to know the alleged activities)

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………

4. Please attach a separate narrative report, if necessary, as well as the documents to support your
claim.

5. Please provide the information of relevant witnesses, if any, including email, telephone and/or
the best way to get in touch with them.

Witness No. 1

Name : ……………………………………………………………………………………………………….

Phone contact :…………………………………………………………………………………………

Email Address : ………………………………………………………………………………………….

 Witness No. 2

Name : ……………………………………………………………………………………………………….

Phone contact :…………………………………………………………………………………………

Email Address : ………………………………………………………………………………………….

Any additional information concerning these witnesses :-

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

6. Please explain why you are of view that the person you are reporting has allegedly commit these
acts knowingly, wilfully and intentionally.

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

7. Please provide any other information for which you may find relevant on the investigation.

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

8. If you decide to remain as anonymous, please ignore this section.

Your Name : ………………………………………………………………………………….

Your Phone Contact :……………………………………………………………………

Your Email Address : …………………………………………………………………………….