The Securities Commission Malaysia (SC) is dedicated towards promoting the internalisation of a culture of good governance amongst capital market participants. Greater emphasis is being placed on self and market regulation to complement the existing comprehensive regulatory framework. We believe that a strong corporate governance culture must be premised on a dynamic synthesis of efforts between regulators and the market.
Malaysian Code for Institutional Investors
The Malaysian Code for Institutional Investors aims to set out broad principles of effective stewardship by institutional investors such as their disclosures of stewardship policies, monitoring of and engagement with investee companies and managing conflict of interests.
ASEAN Corporate Governance Scorecard: Country Report & Assessment
The ASEAN Corporate Governance Scorecard was introduced in 2011. The scorecard is a corporate governance initiative of the Association of Southeast Asian Nations (ASEAN), under the ASEAN Capital Markets Forum (ACMF) Implementation Plan for the development of an integrated capital market, to complement other ACMF initiatives and promote ASEAN as an asset class. This initiative is led by Securities Commission Malaysia and supported by the Asian Development Bank (ADB) through its regional technical assistance for ASEAN capital market integration. The scorecard hopes to raise corporate governance standards of publicly listed companies (PLCs) in ASEAN countries and increase their visibility to investors.
The country report highlights the areas of strengths and areas for further improvement of each participating country which provided regulators, PLCs, Institute of Directors, and other stakeholders useful data points to guide corporate governance reforms, strategies, and measures in their respective country.
The Organisation for Economic Co-operation and Development (OECD) Principles of Corporate Governance were used as the main benchmark for the Scorecard. These cover Rights of Shareholders, Equitable treatment of Shareholders, Role of Stakeholders, Disclosure and Transparency and Responsibilities of the Board.
- ASEAN Corporate Governance Scorecard – Country Reports and Assessments 2013–2014 (pdf – 3.00MB)
- ASEAN Corporate Governance Scorecard – Country Reports and Assessments 2012–2013 (pdf – 3.00MB)
Malaysian Code on Corporate Governance 2012
The Malaysian Code on Corporate Governance 2012 (MCCG 2012) is the first deliverable of the CG Blueprint and supercedes the Malaysian Code on Corporate Governance 2007. It sets out broad principles and specific recommendations on structures and processes which companies should adopt in making good corporate governance an integral part of their business dealings and culture.
This new code on corporate governance focuses on clarifying the role of the board in providing leadership, enhancing board effectiveness through strengthening its composition and reinforcing its independence. It also encourages companies to put in place corporate disclosure policies that embody principles of good disclosure. Companies are encouraged to make public their commitment to respecting shareholder rights.
The MCCG 2012 will be effective on 31 December 2012. Listed companies are required to report on their compliance with the principles and recommendations of the MCCG 2012 in their annual reports. Companies are however encouraged to make an early transition to the principles and recommendations elaborated in this new code.
Corporate Governance Blueprint 2011
The Securities Commission Malaysia’s five-year Corporate Governance Blueprint (Blueprint) which was launched on 8 July 2011, provides the action plan to raise the standards of corporate governance in Malaysia by strengthening self and market discipline and promoting greater internalisation of the culture of good governance. It engenders a shift in corporate governance culture from mere compliance with rules to one that more fittingly captures the essence of good corporate governance; namely a deepening of the relationship of trust between companies and stakeholders.
Developed through a highly consultative process with industry, the Blueprint focuses on six connected themes of the corporate governance ecosystem namely shareholder rights, the roles of institutional investors, boards, gatekeepers and influencers, disclosure and transparency as well as public and private enforcement.
|Click here to view Corporate Governance Blueprint 2011|
The recommendations in the Blueprint will be implemented over a five year period. Most of the recommendations will be applied through a corporate governance code and changes to the Listing Requirements, both of which are expected to take effect by early 2012. A number of recommendations will need to be examined and further studied through the formation of taskforces and working groups expected to be driven by industry in collaboration with the SC. There are also recommendations which would involve legislative amendments. All the recommendations of the Blueprint will take effect after appropriate transitional mechanisms are put in place to ensure minimum disruption.
The CG Blueprint was open for public consultations from 8 July 2011 to 15 September 2011. Additionally, the SC had issued a consultation paper on 15 November 2011 to obtain views on independent chairman and poll voting. The responses received from the public consultations and the SC’s position on each recommendation is available for download.