Driving Results with Internal Engagements

Our people are our greatest asset, and it is vital that the SC continues to attract and retain talent as we foster a high-performing organisation and an inclusive culture. Regular internal engagements are necessary to help create a positive work environment where employees feel supported and valued.

Increased Staff Engagements

The SC increased its employee engagement in 2022, especially through a series of townhall sessions with the Chairman. It is important that staff are regularly informed of the progress and engaged in open dialogue so that objectives remain aligned and concerns are addressed in a timely manner.

The SC, together with an independent firm, undertook an Employee Engagement Survey to further obtain views on work environment, leadership, well-being, culture, and organisational values. These feedback would aid in the formulation of best HR practices and procedures.

Business Planning and Performance Management Approach

In 2022, the SC embarked on an extensive and collaborative business planning process to develop its three-year strategy map and business plan (BP2023- 2025). This was done to foster a greater understanding, shared focus and co-ordination among the various business groups and departments.

The SC’s planning process consisted of a series of Business Group discussions, in which participants deliberated on the various proposed initiatives and how they would interlock with those of the other 12 Business Groups and 42 departments. The BP2023-2025 Management Offsite was held in November 2022, where a total of 115 initiatives were clustered and prioritised into 26 needle-moving initiatives.

The BP2023-2025 will be cascaded across the organisation in 2023, and a mid-year review will be implemented to assess progress and determine if any course corrections are necessary.

Mitigating Systemic Risks And Promoting Financial Stability

Enhanced Risk Governance Framework

In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.

The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).

Intensified surveillance

The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.

In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.

Thematic assessments

The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.

The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.

Joint regulatory discussions

In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.

Monitoring of various components of the capital market

The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.