The statement is stated in the Good Medical Practice, 2006 which means that it is directed towards medical professionals.
The statement tries to say that it is important to be truthful and a good doctor is one that provides all information to patients with good faith and morals.
It is important to be honest to patients as it allows them to become knowledgeable about their condition and helps them to understand what their treatment would entail. A doctor should be able to give information about any alternative treatments that would be suitable for the patient. All details of side-effects, complications and treatment burdens should be given to the patient. This will enable the patient to make an informed decision about which treatment would be best for them. This respects their autonomy.
On some occasions, doctors may need to be flexible with their morals. An example would be when a patient is being aggressive towards the staff and other patients. In such cases, a doctor may need to break the doctor-patient relationship by calling a senior member of staff who will be more competent to handle the situation. In other cases, a doctor may wish to not disclose the results of a test to a patient immediately. It would be desirable to do the test again to ensure that the result is not a false positive. If a patient has stolen something from the clinic or hospital, then it is the duty of a doctor to inform the seniors.
A doctor should always seek to have the attributes highlighted in the Good Medical Practice handout. However, the most important thing is the welfare of patients and a doctor should ensure that this is their foremost priority.