SM Investments unifies group procurement framework and tightens vendor rules

KUALA LUMPUR, 24 JULY 2026 —

SM Investments Corp has instituted a unified group-wide procurement and vendor accreditation policy, centralizing purchasing decisions under its Procurement Department and setting explicit governance rules across its core business units.

According to the policy document, the conglomerate deployed a standardized accreditation system called VENRO across four operating groups. These comprise SMIC Accreditation, SMPHI Project Audit Group, SMPHI-EDD, and Shopping Center Management Corporation. Under this structure, a vendor accredited by one group gains recognition across all four entities.

The framework introduces strict conflict-of-interest barriers for prospective suppliers. SM Investments stated that directors, officers, owners, or employees of vendor firms must not be related up to the third degree of consanguinity or affinity to any officers or employees of SMIC, its subsidiaries, or affiliated companies. Vendors must also sign compliance agreements covering SM’s Code of Ethics, disclosure forms, and privacy policy, while sole proprietorships will be urged to convert into corporations.

To oversee high-value transactions, management will set up a dedicated Bidding Committee responsible for big-ticket purchases, according to the document. The Procurement Department retains primary authority to issue purchase orders based on verified budget allocations, with overall spending limits subject to annual reviews by management.

The policy bars the enrollment of one-time vendors within the VENRO system, according to the document. Exceptions require explicit approval from SM owners or business unit heads for direct entry into SAP. For contractors and consultants, technical capability will be evaluated by the Project Audit Group, while the Procurement Department conducts financial capability checks before completing joint system evaluations.

All supplier contracts must undergo review and approval by the Legal Department prior to execution, according to the filing. The Executive Committee will review the procurement policy on an annual basis.