Bridging the Governance Gap: Formulating a Code of Conduct and Procurement Policy for a Malaysian-Based Company

Loh, Jis Ling (2026) Bridging the Governance Gap: Formulating a Code of Conduct and Procurement Policy for a Malaysian-Based Company. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study examines the governance challenges faced by small and medium-sized enterprises (SMEs) in the Malaysian construction industry, with a particular focus on Cheung Koong Construction Sdn. Bhd.. Despite its operational growth, the company currently relies on informal practices and lacks formalised governance frameworks, particularly in relation to employee conduct and procurement processes. This absence of structured policies exposes the organisation to risks such as unethical behaviour, inconsistent decision-making, and reduced transparency. The primary aim of this study is to bridge this governance gap by formulating a comprehensive Code of Conduct and Procurement Policy tailored to the company’s operational context. Adopting an interpretivist research philosophy and an inductive approach, the study utilises a mixed-methods case study strategy. Primary data were collected through semi-structured interviews with management and questionnaire surveys involving key stakeholders, including clients and suppliers, while secondary data were obtained through document analysis and relevant literature. The findings reveal significant gaps between current practices and industry best practices, particularly in areas such as ethical guidance, procurement transparency, and internal control mechanisms. In response, the study proposes structured and practical policies designed to enhance accountability, promote ethical behaviour, and standardise procurement procedures. These policies are customised to suit the needs and constraints of an SME environment, ensuring both applicability and effectiveness. This research contributes to both practice and theory by providing a practical governance framework for Cheung Koong Construction Sdn. Bhd. and offering insights into how similar SMEs can transition from informal to structured governance systems. Ultimately, the study highlights the importance of formalised policies in strengthening organisational integrity, improving operational efficiency, and supporting long-term sustainability in the construction sector.