MULTILATERAL CO-OPERATIVE INVOLVEMENT

Malaysia has been actively involved in multilateral co-operative efforts to improve the quality of corporate governance in the region. In this context, Malaysia's involvement in two key fora for regional co-operation are highlighted below:

• APEC Corporate Governance Initiatives
• OECD Asian Roundtables on Corporate Governance

APEC Corporate Governance Initiatives

Malaysia has historically been an active participant in APEC corporate governance developmental initiatives. In 1998, following the wake of the financial crisis, APEC Finance Ministers launched a collaborative initiative on corporate governance, whereupon it was agreed that Malaysia would co-ordinate the initiative in conjunction with the Asian Development Bank (ADB) and the World Bank. The SC, on behalf of the Ministry of Finance, was tasked with co-ordinating Malaysia's activities in connection with this initiative. A Core Group, with the SC as Secretariat, was formed to further the initiative. Malaysia led the other members of the Core Group – Australia, the US, the World Bank Group and the ADB – in the development of a report entitled Strengthening Corporate Governance in the APEC Region. The report was endorsed by the APEC Finance Ministers at the Sixth APEC Finance Ministers' Meeting held in Langkawi in May 1999. The report identified leading issues in Asian corporate governance, highlighted during the crisis, which could guide the adoption of practical measures to strengthen corporate governance in the region and sought to aid the process of developing practical reforms to address these issues.

In 2002, APEC Finance Ministers endorsed a proposal for a Corporate Governance Pathfinder Initiative to be carried out. The pathfinder is a peer review process that aims to encourage greater participation of the IMF and World Bank Reports on the Observance of Standards and Codes (ROSC) process, and report on members' achievements and plans for corporate governance reform. The Pathfinder's goal is to encourage all APEC economies to actively improve their corporate governance standards and to highlight APEC's progress in corporate governance reform. The Core Group is led by Australia, and its members include Malaysia, Korea, Mexico, New Zealand, Singapore and the US.

Malaysia has also been an active participant in the APEC Policy Dialogues on Corporate Governance and training events, which collectively provide a platform for the mutual sharing of expertise and experience. In June 2002, a Regional Seminar on Corporate Governance, organised under the auspices of the APEC Financial Regulators Training Initiative programme, was hosted in Kuala Lumpur by the Securities Industry Development Centre, the training and educational arm of the SC. Further details on this past event are available via the relevant SC press release on this website. Further details on APEC corporate governance initiatives are available at the APEC website.

OECD Asian Roundtables on Corporate Governance

Malaysia continues to be an active participant in the successive OECD Asian Roundtables on Corporate Governance. The OECD Asian Roundtable on Corporate Governance provides a platform for policy-makers, regulators, business leaders, as well as regional and international experts to collectively discuss approaches towards improving corporate governance in non-OECD member economies.

In the 5th Roundtable in March 2003 in Kuala Lumpur, policy-makers, experts and business leaders met to complete the OECD White Paper on Corporate Governance in Asia. Participants included regulators from 24 securities commission and stock-exchange regulators from 12 Asian countries, as well as 25 regional and international business leaders and experts. The Roundtable was hosted by the SC, the Bursa Malaysia and the Malaysian Institute of Corporate Governance. The White Paper is a non-binding, consultative document, which builds on the OECD Principles of Corporate Governance. Developed by Asian policy-makers, regulators, business leaders and experts, including those from Malaysia, the White Paper reflects the discussions and recommendations of the Asian Roundtable meetings that took place throughout the region from 1999-2003. It makes recommendations focusing on non-OECD member countries of Asia, taking into account the region's legal, cultural and economic diversity. The White Paper also provides regional comparative information on the current regulatory and institutional framework for corporate governance for Malaysia relative to other Asian jurisdictions.

“Through the White Paper, representatives from the region itself have now articulated a set of common policy recommendations for improving corporate governance throughout Asia, which we welcome” – SC Chairman, Dato' Zarinah Anwar.

Obtain further details on this event.

Following from this, at the 6th Roundtable in Korea, the SC also shared its experiences on issues and challenges surrounding agency enforcement in the area of corporate governance.

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